International Journal in Management & Social Science
Year : 2015, Volume : 3, Issue : 8
First page : ( 322) Last page : ( 331)
Online ISSN : 2321-1784.

An Examination into claim settlement ratios of public and private life insurance companies in India

Dr. Ashturkar P.B.

M.B.A., M. Com., M. Phil., Ph. D., G.D.C & A Associate Professor & Head-Business Law Research Guide in Commerce & Management Science Department of Commerce, K.R.M. Mahila Mahavidyalaya, Nanded, Maharashtra, India

Online published on 22 June, 2018.

Abstract

The YOGAKSHENA i.e. Risk and Safety has been the oldest term of insurance used in the Rigveda for insurance. The claim settlement ratio indicates the number of claims that are paid out per hundred claims made by policyholders. Settlement of the claim is an important area in which every insurance company will have to concentrate. Claim settlement is the yardstick to judge the insurance company's efficiency. The present study examines the claim settlement performance of life insurance business in India and to make a comparative study of public and private life insurance companies. Data relating to claim settlement ratios of LIC of India as public sector insurance company and other twenty-two private sector insurance companies have been collected for study. The present analysis suggests that LIC has created Bench Mark for the insurance business. Private companies also trying to match the standards established by the public company. Most of the companies have been consistently improving the claim settlement ratio which indicates healthy competition among the insurance companies. However, steep reduction in the ratio of the claim settlement of some companies indicates that these companies are not able to cop up with the competition in the industry due to inconsistent performance. The companies wanting to stay in the insurance business for a long have tried to maintain the claim ratio above ninety per cent. The present study is useful to the potential investors in selection of the insurance companies that settle the claims at an earliest and minimize hardships for the insured.

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Keywords

Life insurance, Claim Settlement Ratio, Yogakshena, Claim management, Risk & Safety, Policyholder's Interest.

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