Life Insurance is a contract made by the insurance companies about to assure risk coverage of the human life by exchanging of paid premium. It is very important for life insurance company to fulfill their given assurance at the time of entering in to the policy contract. Even also before insuring there is a need for the analysis of the financial stability, consistent performance and other factors of the life insurance company. Claim Settlement ratio is an important indicator to choose the better insurance company to insure. In this article the review of Star Union Dai-Ichi Life Insurance Company’s claim settlement ratio in the financial year of 2018-19 given and also provide claim history of that company.

STAR UNION DAI-ICHI LIFE INSURANCE

Star Union Dai-Ichi Life Insurance Company Limited (SUD Life) was established on 2009 and it is a joint venture between two of India’s leading public sector banks, Bank of India and Union Bank of India, and Dai-Ichi Life Holdings, a leading life insurance company in Japan.

OPERATIONS OF SUD LIFE

The company has a robust collective network of 11,000+ bank branches catering to more than 64 million customers. SUD Life has one of the largest life insurance distribution footprints in India. Bank of India and Union Bank of India have sponsored select Regional Rural Banks, which provide SUD Life access to more than 1950 branches that make life insurance products available in rural areas. The joint venture of Dai-Ichi was established in 1902 and it is the second largest life insurance company of Japan. Also, Dai-Ichi is one of the top ten life insurers globally, renowned for sound product knowledge, superior asset management skills, and strong operational capabilities to manage life insurance businesses.

SUD’S COMMITMENT TOWARDS CUSTOMER

At SUD, customers are their primary priority. They are committed to providing insurance products that serve their customer’s unique needs across various strata of society and geographies. The promoters of SUD Life have a long-term commitment towards their customers and stakeholder. These strengths and values have been inherited by SUD Life, as they make their way to becoming the next rising star in the Indian life insurance business, promising exceptional value to all.

Claim Settlement Ratio of SUD Life Insurance

Claim Settlement Ratio is defined as the number of claims settled by an insurance company in a financial year divided by the total number of claims reported in the same financial year, including the number of claims pending at the beginning of that financial year. 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 Star Union Dai-Ichi Life Insurance in the financial year 2018-19 is 96.74% Claim Settlement Ratio of SUD Life Insurance Claim Settlement Ratio of SUD Life Insurance

Claim details of SUD Life Insurance

SUD Life Claim Settlement 2018-19

Claims pending at the starting of FY 12
No of claims intimated in FY 2018-19 1246
Total No of Claims 1258
No of Paid Claims 1217
No of Claims Rejected 35
From the above data, Star Union Dai-Ichi Life Insurance has paid 96.74% of claims against the total number of claims received in the financial year of 2018-19. The company rejected 35 claims, that leads to the claim Repudiation ratio of 2.78% in the year of 2018-19. SUD Life has paid 47 crores of death claim for their customers against 1217 claims intimated in the financial year of 2018-19.

Claim Settlement Ratio of SUD 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 SUD Life for last 5 years is given below.

Financial Year

Claim Settlement Ratio

2014-15 94.08%
2015-16 80.73%
2016-17 84.05%
2017-18 92.26%
2018-19 96.74%
 The graphical representation of last 5 years of Claim Settlement ratio of SUD Life is provided below. Claim History of SUD Life Insurance Claim History of SUD Life Insurance From the above graph indicates that the huge fall in the claim settlement ratio of SUD Life Insurance company in the financial year of 2015-16. After the next financial year onwards their claim settlement ratio increases linearly which is good. But their consistency towards maintaining their claim settlement is poor as per the graph.

Review of Star Union Dai-Ichi Life Insurance Claim Settlement Ratio

Insurance companies promised the assurance of the risk coverage of their customers at the time of providing the insurance policy. But some incidents the insurance company rejected their claims due to wrong information provided from the customer side. It is important for people to provide correct details and required documents at the time of claim to avoid the rejection and pending of claims. As per the data provided in this article, SUD life insurance is little risky to getting insured from them. Because even the major public sector banks contribution, the claim settlement is poor and claim repudiation ratio is high even tough the number of intimated claims is low. By settling more claims and to maintain their consistency in that makes the company good to insure.
Source : IRDAI
STAR UNION DAI-ICHI LIFE INSURANCE

Leave a Reply