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 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 life insured. For that, the selection of life insurance company is important in terms of settling the claim. Claim settlement ratio of life insurance company provided by the IRDAI is helps us to find better life insurance company to insure. In this article the review of Tata AIA Life Insurance claim settlement ratio is given in the financial year of 2018-19 also provide the claim settlement history of that life insurance company.
TATA AIA LIFE INSURANCE
Tata AIA Life Insurance Company Limited is a Joint venture between the two great financial institutions named TATA sons Pvt. Ltd. And AIA group Ltd.
The company’s strong combination is made by Tata’s preeminent leadership position in India and AIA’s largest presence pan-Asian life insurance group in the world.
Tata AIA Life Insurance Company has collected the new business weighted premium of Rs. 2,692 Cr for the FY 2019-20 and also, they prove for their persistency at 89.10% and improved Claim Settlement Ratio of 99.06%.
The company’s new business weighted premium collection make them Ranked No.5 and one of the fastest growing companies in the Life Insurance sector.
Tata group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals and it was founded by Jamsetji.
The group operates more than 100 countries across six continents with a mission ‘To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation-based leadership with trust’.
AIA Group Limited and its subsidiaries comprise the largest independent publicly listed pan-Asia life insurance group. The business that now AIA was established a century ago in Shanghai on 1919. Except Japan, AIA is a market leader in the Asia-Pacific region based on life insurance premiums and holds leading positions across majority of its markets. AIA had total asset of US$284 billion as of 31st December 2019.
Claim Settlement Ratio of Tata AIA 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 Tata AIA Life Insurance in the financial year 2018-19 is 99.07%
[caption id="attachment_3394" align="aligncenter" width="552"] Claim Settlement Ratio of Tata AIA Life Insurance[/caption]
Claim details of Tata AIA Life Insurance
Tata AIA Life Claim Settlement 2018-19
|Claims pending at the starting of FY||0|
|No of claims intimated in FY 2018-19||2700|
|Total No of Claims||2700|
|No of Paid Claims||2675|
|No of Claims Rejected||25|
As per the details provided in the above table Tata AIA Life Insurance Company has settled 99.07% of death claims against the total number of claims reported in the financial year of 2018-19.
The company has rejected 25 claims that leads its claim repudiation ratio as 0.93% in the year of 2018-19.
Tata AIA Life has paid 145 crores of claim amount for 2675 claims to their customers in the financial year of 2018-19.
Claim Settlement Ratio of Tata AIA 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 Tata AIA for last 5 years is tabulated below.
|Financial Year||Claim Settlement Ratio|
The graphical representation of Tata AIA Life’s claim settlement ratio for 5 years is given below.
[caption id="attachment_3395" align="aligncenter" width="605"] Claim History of Tata AIA Life[/caption]
From the above graph indicates that the claim settlement ratio of Tata AIA Life Insurance company has increased every year in a growth state. Even though there is a lag presence in the financial year of 2016-17, the company maintain its consistency for providing claims to their customers year on year.
Review of Tata AIA 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.
Even though the company rejecting claims, the claim settlement ratio is stable and above 90%, which is very good. But the number of claims intimated in a financial year is low. Here, as per the above data Tata AIA life insurance is a very good company to insure.
|Source : IRDAI|
|TATA AIA LIFE INSURANCE|