It’s natural for insurance buyers to feel insecure about whether the insurance provider will stick to their side of the bargain in times of need. They wish to be assured that their insurance provider will have their back during a crisis. One of the most accurate ways to get their assurance is by checking the insurance provider’s claim settlement ratio.
What is a claim settlement ratio of a medical health insurance plan?
CSR or the claim settlement ratio denotes the percentage of claims that an insurance company settles against the total number of claims filed in a stipulated amount of time. For example, if an insurance company receives 100 claims in the past one month, if it successfully settles 70 of them, the claim settlement ratio of that month would be 70%.
The two ratios that you should know about before investing in a medical health insurance plan include Claim Settlement Ratio and Incurred Ratio. While both of these are important parameters, we would shed light on the relevance and significance of the claim settlement ratio in this article.
Importance of Claim Settlement Ratio
There are many reasons why you should consider the claim settlement ratio before buying a medical health insurance plan. Let’s take a look at a few of these reasons.
# 1 An Effective Tool to Compare Medical Health Insurance Plans
No matter what kind of medical health insurance plan you’re looking for, it’s important to compare different plans before making your choice. The claim settlement ratio is an excellent parameter to distinguish between your options and make the correct decision. This would help you ensure that the insurance provider will settle your valid claim in times of need and allow you to make the most of your medical health insurance plan.
# 2 Value for Money
A medical health insurance plan with a good claim settlement ratio is a good value for money. Look at it in this way. You would be spending money every month (or year) toward your medical health insurance policy. As long as your insurance provider’s claim settlement ratio meets the top industry standards, you can rest assured that your money is not going to waste.
# 3 Make Your Insurance Benefits Matter
Your medical health insurance plan might offer many lucrative benefits like ambulance cover, home coverage, or cashless claims. Still, these benefits only mean so much without a high claim settlement ratio. Hence, it’s always advisable to go for an insurance provider that offers a high CSR to make sure your insurance benefits can come to use when needed.
How to find an insurance company with a high CSR?
Now that you have understood the importance of a high claim settlement ratio, here’s how you can find medical health insurance plans with high CSRs.
The IRDAI annual report sheds light on the claim settlement ratios of the multiple insurance providers on an annual basis. This report allows you to analyze the performance of the insurance provider throughout the year and make an informed decision. You can also check the CSR of the various insurance providers online and get the best medical health insurance policy for yourself.
The claim settlement ratio of an insurance provider is an accurate representation of their reliability and accountability. When you buy a medical health insurance plan, you want it to have your back in stressful times, and the claim settlement ratio of the insurance provider is the most appropriate way to gauge the likelihood of this. Hence, it’s evident that you must purchase medical health insurance plans from insurance providers with a high claim settlement ratio. There are many different health insurance providers like Care Health Insurance that are known for having a high claim settlement ratio and being reliable support systems in medical emergencies.
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