Selecting the right car insurance is as important as choosing the features for your dream car. In this case, the IRDAI Claim Settlement Ratio is like a reliability score, ensuring your financial safety during unexpected events on the road.
It’s an indicator of insights into an insurance company's reliability in fulfilling its promises and ensuring that you're protected when needed.
Further, we'll look how the claim settlement ratio and car insurance claim process function.
What Is Car Insurance Claim Settlement Ratio?
The Claim Settlement Ratio, or CSR as it is popularly called, is a ratio that depicts the percentage of claims an insurance company settled against the total number of claims made on it in a given financial year.
For instance, say in a financial year, a company receives 100 claims out of which it settles 98. In this case, the Claim Settlement Ratio would be 98%.
The Claim Settlement Ratio is calculated using the following formula -
CSR = (number of claims settled / total number of claims made) X 100
Insurance companies submit their claim-related details to the IRDAI every year. This includes the number of claims made, the number of claims settled, total claims paid, premiums earned, etc. IRDAI uses these details and calculates the CSR of each insurance company. The calculated values are then published in the Annual Report issued by the IRDAI.
Types Of Car Insurance Claim Settlements
Before we delve further into the car insurance claim process, it’s important to understand the types of car accident insurance claims. These types of claims help determine how you should proceed in the event of an accident, ensuring you are well-prepared for any unexpected situations.
1. Cashless Claim:
Cashless claim settlement in car insurance allows you to have repairs done at a network garage without upfront payment. Your insurer directly covers the costs. However, any deductibles specified in your policy must be borne by you.
2. Reimbursement Claim:
When you use a non-insurance company garage, you pay for repairs upfront. Afterward, you submit bills, receipts, and a claim form to your insurer. They review the documents, reimburse you, but might deduct any owed deductibles.
What Is The Car Insurance Claim Process?
The settlement for the car insurance claim process requires a series of steps. This means that you will have to collect necessary documents for the insurance to be settled.
1. Contact Your Insurance Company
Reach out to your insurer to report the incident and provide comprehensive information about your vehicle's damage. Honesty is essential, as concealing information can complicate the resolution.
2. File a Police Report
If the situation requires it, promptly file a First Information Report (FIR) with the police after reporting the incident. FIRs are typically needed for theft, accidents, or fires. Minor damages without third-party involvement may not necessitate an FIR.
3. Collect Photographic Proof
Capture multiple clear and unambiguous photographs of the accident scene and damages to help your insurance company accurately assess the extent of the damage.
4. Submit Required Documentation to Your Insurer
Your insurer will need specific documents to process your claim, including your insurance policy, the FIR (if filed), the vehicle owner's license, the driver's car registration certificate, and any other relevant paperwork.
5. Vehicle Repairs
You have the choice to take your vehicle to a repair shop for necessary fixes or request your insurer to cover the repair costs. If your claim is approved, you'll receive reimbursement or have your losses covered.
6. Get To The Claim Settlement Process
In the case of a cashless claim settlement, repair costs are directly handled with the network garage upon receiving the surveyor's final report. If you choose reimbursement, your claim will be processed when you submit repair receipts to the insurance company. Keep in mind that, even though your own damage insurance provider contributes a significant portion to repair expenses, you may still be responsible for a mandatory deductible.
How To Check IRDA Claim Settlement Ratio?
Insurance firms operating under the regulation of the Insurance Regulatory and Development Authority of India (IRDAI) release their claim settlement ratio on an annual basis. To find out the Claim Settlement Ratio of your chosen insurance company, you can visit the official IRDAI website or even find it on the insurer's website. The claim settlement ratio is expressed as a percentage.
The IRDA claim settlement ratio is like a report card for insurance companies, showing what portion of claims they handle each year. It's a crucial measure of how responsible an insurer is in dealing with claims. In simple terms, the claim settlement ratio is a sign of how good they are at keeping their promises when you need them the most. So, when you're shopping for car insurance, it's smart to go for companies that not only offer great benefits but also have the highest claim settlement ratio.
