General Insurance Claim Settlement Ratio. Insurance claim settlement ratio can be simply defined as the ratio of the number of claims that the insurer has paid over the number of claims filed by claim settlement ratio is a popular but flawed rule of thumb, used for quick evaluation and comparison of an insurer's claim settlement experience. Among the public sector general insurers.
The concept of claim settlement ratio is very simple and also very important.but, it is observed that most of the people are ignorant about this term. Irdai report on insurers' claim settlement ratio. Comparing the claim settlement ratio of car insurance companies is important to get a basic idea about the possibility of getting your claim accepted.
With this, the customer can know whether the insurer is reliable in claim settlement or not.
Claim settlement ratio is like a benchmark to gauge the trustworthiness of an insurance company. Claim settlement ratio (csr) is the percentage of claims which an insurance company settles against the total number of claims made on it in one financial year. Higher the claims settlement ratio and quicker the claims is settled, better it is for the customers. The claim settlement ratio is the number of claims the insurance company has paid compared to the number of claims received.