A life insurance policy is one of the few investment options that provide financial security to the people along with maturity benefit, including tax benefits. Even though having these much of benefits, the primary objective of life insurance is to provide financial security or income replacement for their family in the event of life insured’s death. Human life is made up of the happening of unexpected and uncertainties. So, it is important to the people, who has a financial dependent would benefit from investing in life insurance. Here, you can clearly understand the importance of providing the claims of an insurance companies in the event of life insured risk. So, before investing in to life insurance, one should review the important factor that is claim settlement ratio. In this article the review of SBI Life Insurance Claim Settlement Ratio in the financial year of 2018-19 is given and also provide the history of claim settlement ratio of the company.
SBI LIFE INSURANCE
SBI Life Insurance Company Limited is one of the leading Life Insurance companies in India. It is a joint venture between India’s largest bank State Bank of India and the leading global insurance company BNP Paribas Cardif.
ABOUT SBI LIFE
The company provide a comprehensive range of savings and protection products to individual and group customers across traditional and unit-linked plans, covering about 8.9 million lives in FY20.
Their products are available in the life, pension, annuity and health segments. The products are centered around the existing as well as emerging needs of their customers.
The products cater to customers across different age groups and income levels. Products available online include life e-Shield, e-Wealth Insurance, Smart Platina Assure, Poorna Suraksha and Annuity Plus.
In the past 20 years at SBI Life, they strengthened their leadership position in the private life insurance space by nurturing their time-based, mutually beneficial relationships.
Their bancassurance channel is one of their crucial growth levers, comprising the branch network of their parent, State Bank of India, as well as other local and national public and private banks. Their distribution network is further strengthened with one of the best agency networks and other Specified Persons.
Claim Settlement Ratio of SBI Life Insurance
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 claim 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 SBI Life Insurance in the financial year 2018-19 is 95.03%
[caption id="attachment_3399" align="aligncenter" width="610"] Claim Settlement Ratio of SBI Life Insurance[/caption]
Claim details of SBI Life Insurance
SBI Life Claim Settlement 2018-19
|Claims pending at the starting of FY||72|
|No of claims intimated in FY 2018-19||19830|
|Total No of Claims||19902|
|No of Paid Claims||18913|
|No of Claims Rejected||
From the above data, SBI Life Insurance paid 95.03% of claims against the total number of claims received in the financial year of 2018-19.
The company rejected 889 claims, that leads to the claim Repudiation ratio of 4.47% in the year of 2018-19.
SBI Life has paid 689 crores of death claim for their customers against 18913 claims intimated in the financial year of 2018-19.
Claim Settlement Ratio of SBI Life for last 5 years
Insurance Regulatory and Development Authority of India regulates the insurance companies and as per their norms every insurance company should maintain stable, consistent and claim settlement ratio in order to protect the insurable interest of the policy holders.
The claim settlement ratio of SBI life for last 5 years is tabulated below.
Claim Settlement Ratio
The graphical representation of SBI Life’s claim settlement ratio for 5 years is given below.
[caption id="attachment_3400" align="aligncenter" width="617"] Claim History of SBI Life Insurance[/caption]
Form the above figure clearly indicates that the claim settlement ratio of SBI Life has increased year on year linearly with better percentage. But, in the financial year of 2018-19, their claim settlement ratio has decreased as mentioned in the graph which is not good for a growth of a life insurance company. But the claim settlement ratio did not fall under 95% which indicates their consistency to maintaining their settled claim ratio.
Review of SBI 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 provided in this article, the claim settlement ratio of SBI Life insurance is good and the company is very good company to insure people life because even though their fall of claim settlement in the year of 2018-19, their stability is very good to maintained their consistency towards claim settlement. But the company should try to reduce the rejection ratio of claim and also try to decrease number of intimated claim and increase the claim settlement which makes SBI Life better to insure always.
|Source : IRDAI|
|SBI LIFE INSURANCE|