How do you know the industry is charging you more than it should? In insurance, one of the yardsticks is the claims ratio, which is the ratio of claims paid to premiums received. A ratio of over 100 means the company is paying more claims than it is receiving premiums and vice-versa. The claims ratio for the public sector is over 100%, about 84% for the private sector and about 58% for standalone insurers, as per Irdai’s annual report for FY17. We ask experts whether this indicates overcharging by insurers?
