Life insurance is a contract between the life insurance company and the life insured, where the insurer promises to pay a sum of money or how much the life insured took a coverage himself to the designated beneficiary, upon the death of an insured person. In this statement, the important thing is the assurance of settled the coverage amount to the specified person due to the risk of the life insured. For that, the selection of a life insurance company is important in terms of settling the claim. The claim settlement ratio of the life insurance company provided by the IRDAI is helping us to find a better life insurance company to insure. In this article, the review of Sahara Life Insurance claims settlement ratio is given in the financial year of 2018-19 and also provide the claim settlement history of that life insurance company.
SAHARA INDIA LIFE INSURANCE
The Sahara Pariwar’s Latest foray is in the Life Insurance then the company is called as Sahara India Life Insurance Company Limited. The company got licensed by the Insurance Regulated, the IRDAI on 6th February 2004.
With this approval, Sahara India Life Insurance Company Limited becomes the first life insurance company in India, which the shares are purely and wholly hold by the Indian Private company without entering into any foreign collaboration to enter in to the Life Insurance Market. The company has launched with a paid capital of 157 crores.
The company offers an exhaustive range of competitive plans and products that caters to everyone from all segments along with prompt and qualify customer service and support. The variety of products offered by the company would enhance people’s insurance policies at a very minimal rate.
OPERATIONS OF SAHARA LIFE
With acknowledge presence in most part of the country the company serves almost all the sections of the society right from ruler to middle class and urban based.
Sahara life insurance provides an extensive range of products with a customer centric approach, like money back plan, unit link plan, term assurance plan, endowment plan and group assurance plan to cater the insurance need of every individual.
Apart from the above segment, the company offers add-on plans such as Accidental benefit and critical illness riders.
It is one of the fastest growing insurance company in India and this well-known company claims user-friendliness and unswerving customer service.
Claim Settlement Ratio of Sahara Life Insurance
The process of pays out a risk coverage amount to the insured on the occurrence of the event specified in the contract, in a return of premium paid for the insured is called claim settlement of insurance company.
Claim settlement ratio is defined as number of claims settled to the insured against the number of claims filed to the insurer.
CSR = (Total no of claims paid during a financial year) / (Total no of claims received in a financial year)
While choosing the life insurance company to insure, it is an important factor to take into consider.
The Claim Settlement Ratio of Sahara Life Insurance in the financial year 2018-19 is 90.16%
[caption id="attachment_3417" align="aligncenter" width="588"] Claim Settlement Ratio of Sahara Life Insurance[/caption]
Claim details of Sahara Life Insurance
Sahara Life Claim Settlement 2018-19
|Claims pending at the starting of FY||59|
|No of claims intimated in FY 2018-19||622|
|Total No of Claims||681|
|No of Paid Claims||614|
|No of Claims Rejected||51|
As per the details provided in the above table Sahara Life Insurance Company has settled 90.16% of death claims against the total number of claims reported in the financial year of 2018-19.
The company has rejected 51 claims that leads its claim repudiation ratio as 7.49% in the year of 2018-19.
Sahara India Life Insurance has paid 5 crores of claim amount for 614 claims to their customers in the financial year of 2018-19.
Claim Settlement Ratio of Sahara India Life for last 5 years
To know the history of claim settlement is important before insuring in to the life insurance company. For that IRDAI provide annual report of insurance companies every year, that contains the complete financial status of an insurance companies and also the indicators like claim settlement ratio, solvency ratio…etc.
The claim settlement ratio of Sahara India Life for last 5 years is tabulated below.
Claim Settlement Ratio
The graphical representation of Sahara India Life’s claim settlement ratio for 5 years is given below.
[caption id="attachment_3418" align="aligncenter" width="570"] Claim History of Sahara Life Insurance[/caption]
From the above chart indicates the unstable claim settlement ratio of Sahara Life Insurance company. The claim settlement ratio was not more than 90% for more than 6 to 7 years. Even though, as per the IRDAI guidelines the company didn’t sell any new policies, their claim settlement ratio has maintained in the same state.
Review of Sahara Life’s Claim Settlement Ratio
The basics of life insurance company is to provide financial security or claim if the insured person is no more. But insurance companies rejected and pending some of the claims due to some reason. None of the insurance companies aim is to reject their customer claims and also that’s depends on the details providing at the time of entering in to the insurance policy. People have a responsibility to provide correct details required at the time of taking the policy. At the time of claim, the pending can be avoided by providing required documents to settle the claim.
As per the above data, the company is too risky to get insured. The same IDRAI ordered that Sahara India Life Insurance Company was not directed to underwrite any kind of new business from June 2017. If the company proves by providing claims to their existing customers properly and maintains their claim settlement ratio in a growth state, the company may again get an order to selling their new policies.
|Source : IRDAI|
|SAHARA INDIA LIFE|