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One of the main reasons you buy insurance for your bike is an expectation that your insurance company will take care of damages in case of an unforeseen accident. In case of accidents or damages due to fire, calamities, etc, you inform your insurance company about the losses by raising a claim. And you hope that the insurance company would compensate you accordingly. However, insurance companies receive a lot of claims in a year, and unfortunately, a few claims are even rejected. While such cases are rare, you would still want to know the chances of your claim getting settled. And Claim Settlement Ratio tells you the same. Claim Settlement Ratio is a critical concept to look at while buying a two wheeler insurance plan.
Bike insurance Claim Settlement Ratio (CSR) is the ratio of the number of claims that an insurance company settles successfully as compared to the number of claims that are received by them in one financial year. A higher CSR means a higher chance of your accidental claims being settled. Thus, you must consider a company’s CSR while buying new bike insurance. A CSR anywhere between 85% to 95% can be considered ideal.
Claim Settlement Ratio is calculated as the total number of claims settled in a given financial year divided by the total number of claims received in the same period multiplied by 100. The higher the CSR, the better are the chances of your claim getting honored by your insurance company.
At ACKO, our primary objective has always been to adopt best practices to offer an easy, transparent and hassle-free claim experience. We make our best attempt to help you make an informed decision while buying an insurance policy for your bike.
|Category||Claim Settlement Ratio|
|Motor Own Damage Pvt Bike Insurance||95.45%|
|Disclaimer: *95.45% claim settlement ratio is for Two wheeler-OD portfolio for FY-2021-22.|
Selecting an insurance company solely based upon its CSR may not give you a complete picture of the insurer. Here are a few reasons why CSR may not give you a complete picture.
Policyholders might not follow the claim process leading to rejection.
The company rejects a fraudulent claim. However, if such instances are more, the CSR will drop.
The policyholder got the bike repaired before informing the insurance company leading to rejection.
An insurance company may have received lesser number of claims in one financial year leading to an increase in CSR.
The policyholder did not file a claim in the stipulated time, thus leading to rejection.
The policyholder may not have submitted the required documents in time.
Note: The above factors can increase or decrease the CSR of an insurance company and one cannot predict the capability of the insurer for settling claims because of such things. Thus, it is not a good idea to choose an insurance company only basis its CSR.
Comparing the claim settlement ratio of bike insurance companies is an effective way to gauge the insurer's capability to settle claims. However, it is not the only factor based on which the performance of an insurer should be judged. The policyholder should consider a few other things apart from the claim settlement ratio while choosing an insurance company.
Insurance Regulatory and Development Authority of India (IRDAI) releases a report on the Indian insurance sector each year. This report also mentions the claim settlement ratio of bike insurers. It is recommended to take a look at this report to understand the probability of your claim getting settled with a particular insurer.
Take a look at how swiftly and conveniently the insurer settles your claims. New-age insurers like ACKO relieve you from the tedious process of form-filling and documentation. With 100% paperless transactions, you can buy, renew, raise claims and track them online.
With the advent of digitization, it has become easy to find out what customers think about a product or service. Check the ratings and experiences of customers of a particular two-wheeler insurance company to make an informed decision while buying a bike insurance policy.
The main difference between CSR and Incurred Claim Ratio is ICR is related to claim amount and premium amount. CSR is dependent on the claims received and claims settled. CSR is a number of claims settled upon a number of claims received. ICR is the total claim amount against the total premium amount received in a particular financial year.
No, CSR should be one of the factors that lead you to choose a specific insurance company. It can act as one of the measures that increase the credibility of the company. However, apart from the CSR other factors such as the price of the insurance policies, promptness of services, online reviews, etc. should also be considered.