Skip to content

Qualities(Good/Bad) of an Insurer

What qualities(both good and bad) would you consider to judge someone who promises to help you during times of distress?

Quality 1-
Pays when asked 🙏

In formal language, this is
Claim Settlement Ratio
- As is obvious, this is the most important quality you should care about. There’s no point paying a premium if the Insurer won’t help you out when you “genuinely” need it the most

Good quality - Higher ratio is better

Ranking of Insurers based on
CLAIMS SETTLEMENT RATIO
Created with Highcharts 9.2.2Insurer%IFFCO TokioMagma HDINew IndiaOriental InsuranceBajaj AllianzReligare HealthManipal CignaFuture GeneraliAckoNational InsuranceApollo MunichDHFL GeneralMax BupaHDFC ERGOGo DigitLiberty GeneralEdelweissUnited IndiaTata AIGStar HealthICICI LombardBharti AXARoyal SundaramKotak Mahindra Gen...Universal SompoAditya Birla HealthRelianceSBI GeneralCholamandalam010.250.50.75

💡 How to read - If IFFCO TOKIO had a total of 100 claims available in a given year, they paid out 97 of them during the same year 🧨



Quality 2-
Pays quickly ⏱️

This is
Claim Settlement Efficiency Ratio
- You should care about this because it measures tendencies of the Insurer to settle claims within an acceptable time(3 months). When you don't have Cashless, this is all the more important because you had paid for the bills out of your own pocket

Good quality - Higher ratio is better

Ranking of Insurers based on
CLAIMS SETTLEMENT EFFICIENCY RATIO
Created with Highcharts 9.2.2Insurer%Magma HDIBajaj AllianzNew IndiaManipal CignaAckoFuture GeneraliApollo MunichOriental InsuranceDHFL GeneralMax BupaHDFC ERGOGo DigitReligare HealthLiberty GeneralEdelweissStar HealthICICI LombardRoyal SundaramKotak Mahindra Gen...Universal SompoBharti AXATata AIGIFFCO TokioAditya Birla HealthUnited IndiaNational InsuranceRelianceSBI GeneralCholamandalam010.250.50.75

💡 How to read - If MAGMA HDI had a total of 100 available claims in a year, 96 of them were paid out within 3 months of receiving them 💨



Quality 3-
Avoids paying ☠️

This is
Claim Repudiation Ratio
- Fancy word for stating how aggressive is the Insurer at rejecting/denying any payout for your claim. Of-course this also includes fraudulent/unqualified claims which should be rightfully rejected

Bad quality - Lower ratio is better

Ranking of Insurers based on
CLAIMS REPUDIATION RATIO
Created with Highcharts 9.2.2Insurer%SBI GeneralIFFCO TokioUniversal SompoAditya Birla HealthKotak Mahindra Gen...CholamandalamGo DigitStar HealthBharti AXAHDFC ERGORelianceMax BupaRoyal SundaramLiberty GeneralTata AIGUnited IndiaOriental InsuranceManipal CignaApollo MunichFuture GeneraliICICI LombardAckoReligare HealthDHFL GeneralNational InsuranceEdelweissBajaj AllianzNew IndiaMagma HDI00.050.10.150.20.250.30.35

💡 How to read - If SBI General had a total of 100 available claims in a given year, they denied paying out 30 of them during the same year 😠


Quality 4-
Takes long to pay⏳

In formal language, this is
Claim Outstanding Ratio
- You should care about this because it tells you the proportion of cases that are outstanding out of the total claims. This means tendencies to keep your claim in limbo (neither rejected nor settled)

Bad quality - Lower ratio is better

Ranking of Insurers based on
CLAIMS OUTSTANDING RATIO
Created with Highcharts 9.2.2Insurer%CholamandalamICICI LombardRelianceSBI GeneralDHFL GeneralRoyal SundaramTata AIGNational InsuranceUnited IndiaAditya Birla HealthApollo MunichBharti AXAOriental InsuranceLiberty GeneralStar HealthAckoFuture GeneraliKotak Mahindra Gen...IFFCO TokioEdelweissBajaj AllianzUniversal SompoMagma HDIHDFC ERGOMax BupaNew IndiaManipal CignaReligare HealthGo Digit00.10.20.30.4

💡 How to read - If Cholamandalam had a total of 100 available claims in a given year, they kept 32 of them hanging during the same year 😭



Quality 5-
Takes forever to pay ⏳⏳⏳

In formal language, this is
Claims Pendency Ratio
- This is like a more extreme version of keeping you hanging, generally
more than a year
since you filed your claim

Bad quality - Lower ratio is better

Ranking of Insurers based on
CLAIMS PENDENCY RATIO
Created with Highcharts 9.2.2Insurer%CholamandalamNew IndiaNational InsuranceICICI LombardUnited IndiaBharti AXARoyal SundaramApollo MunichSBI GeneralOriental InsuranceIFFCO TokioRelianceFuture GeneraliAditya Birla HealthStar HealthLiberty GeneralBajaj AllianzUniversal SompoKotak Mahindra Gen...Tata AIGHDFC ERGOAckoDHFL GeneralEdelweissMagma HDIGo DigitMax BupaReligare HealthManipal Cigna00.050.10.150.20.250.30.35

💡 How to read - If Cholamandalam had a total of 100 available claims for a given year, 30 of them were kept hanging even after a year since receiving them 🤯



Quality 6-
Has enough to pay💰

This is
Solvency Ratio*
- IRDAI requires insurers to maintain a min. solvency of 1.5 at all times. Which means, if I (as an Insurer) expect to make a payments of 100 bucks in the coming year towards potential claims, I should have at-least 1.5 times of that now, which is 150 bucks

Good quality - Higher ratio is better

Ranking of Insurers based on Solvency Ratio
Created with Highcharts 9.2.2INSURERRatioDHFL GeneralBajaj AllianzEdelweissSBI GeneralGo DigitUniversal SompoManipal CignaLiberty GeneralNew IndiaICICI LombardStar HealthRoyal SundaramKotak Mahindra Gen...AckoMax BupaBharti AXAHDFC ERGOIFFCO TokioApollo MunichTATA AIGAditya Birla HealthRelianceMagma HDIOriental InsuranceReligare HealthCholamandalamFuture GeneraliUnited IndiaNational Insurance00.511.522.53

💡 How to read - If DHFL General was expecting an expense of 100 bucks to settle claims, it had at-least 260 bucks as of now 🤑

*Note - Data for Solvency Ratio is across all verticals(Health, Motor, Marine, etc)





Want to print your doc?
This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
CtrlP
) instead.