With claim settlement ratio of over 100%, PSU general insurance companies are ahead of their private counterparts having claim settlement ratio at 88%.
Of the total 1.62 crore claims received last fiscal, the general insurance companies settled 1.63 crore and repudiated 7.8 lakh claims i.e. 5%. However, if we include outstanding claims of preceding fiscal, the claim settlement of PSU insurers declined sharply. Considering the fact that PSU general insurers had 34 lakh outstanding claims, PSU general insurers settled 83% claims last fiscal.
Among PSU general insurers, United India and New India settled more claims than what they received last fiscal to record claim settlement ratio of over 100%. However, if we include outstanding cases, the claim settlement ratios of United India and New India declined to 76% and 95%, respectively.
Private general insurers settled 80% of claims last fiscal (including outstanding cases). If we exclude outstanding cases, the private general insurance companies have settled 88% of claims and repudiated 4% claims. Of the 86 lakh claims request received during FY 2017-18, private insurers have settled 76 lakh claims and repudiated 3.35 lakh claims.
Not a single private general insurer had recorded claim settlement ratio of 100%, even if we exclude outstanding cases.
However, private general insurers attended most of their claims within 3 months. IRDAI data shows that private general insurers attended 93% of claims within 3 months of receiving the claim request. In fact, new entrant Go Digit had attended 100% claims within three months. Companies who had attended 95% of claims within 3 months last fiscal were Bajaj Allianz, HDFC Ergo, ICICI Lombard, Kotak Mahindra, Liberty, Reliance, Royal Sundaram, SBI General and Universal Sompo.
On the other hand, PSU general insurers takes a little while to attend claims. IRDAI data shows that PSU insurers attended 75% of claims within 3 months. New India tops the table among PSU general insurers with 88% of its claims attended within 3 months.
Overall, the non-life insurance industry settled 82% last fiscal. If we exclude outstanding cases, the non-life insurance settled 96% claims by settling 2.40 crore claims against 2.49 crore claims and repudiated 11 lakh claims last fiscal.