January 2022 - Turtlemint

The latest Claim Settlement Ratio of Life Insurers in India 2020-21

January 27, 2022January 28, 2022 Sidharth Hampanavar

There are 24 life insurance companies in India with 23 being private players and 1, LIC, is owned by the Government of India. Every insurer offers a range of life insurance policies so that you can choose a plan depending on your coverage needs.

Life insurance policies provide financial security in the case of a premature demise such that it helps in replacing your income and your family is not financially impacted. Moreover, with the different types of life insurance plans, you can fulfil other goals too–

Planning for your child’s secured future
Planning for a retirement fund
Creating investments for your goals
Meeting medical emergencies,

However, a life insurance policy proves it’s worth only when it settles the claim, easily, when needed. This is the true test of the policy as well as of the life insurance company. Every policyholder wants a hassle-free claim settlement and that is why the Claim Settlement Ratio is considered important when choosing an insurer.

Claim Settlement Ratio – the concept

Claim Settlement Ratio (CSR) is a numerical figure that measures the claims that a life insurance company has settled successfully against the total claims that were made on it. The ratio is measured in a percentage and the higher the percentage the more favourable the insurer is when it comes to claim settlement.

Claim Settlement Ratio – (number of claims settled / total number of claims raised) * 100

For example, if an insurer settles 99 claims out of 100, its CSR would be 99%.

Latest Claim Settlement Ratio of life insurers

The Insurance Regulatory and Development Authority of India (IRDAI) calculates and publishes the CSR of life insurance companies in its annual report. This report captures the CSR of each financial year. For the financial year 2020-21, the IRDAI published its reports in December 2021. The report stated the following figures –

In the financial year 2020-21, an aggregate claim of 11.01 lakhs was raised on life insurance companies for individual life insurance policies. Against this, 10.84 lakh claims were settled valuing INR 26,422 crores.
9527 claims were repudiated valuing INR 865 crores
3032 claims were rejected valuing INR 60 crores
3055 claims were pending to be cleared by the end of the financial year valuing INR 623 crores

The financial year 2020-21 was good for policyholders as the claim rejections and repudiations were reduced. Here are some numbers –

The overall CSR of the life insurance industry was recorded at 98.39% in FY 2020-21. This is an increase compared to 96.76% CSR which was recorded in FY 2019-20
The claim repudiation or rejection ratio reduced to 1.14% in FY 2020-21 compared to 1.28% in FY 2019-20

Now let’s look at the CSR of life insurance companies for the financial year 2020-21 –

Name of the insurance company	Claim Settlement Ratio	Claims Repudiated
Aditya Birla Sun Life Insurance Company Limited	98.04%	1.79%
Aegon Life Insurance Company Limited	99.25%	0.75%
Ageas Federal Life Insurance Company Limited	95.07%	2.11%
Aviva Life Insurance Company Limited	98.01%	1.99%
Bajaj Allianz Life Insurance Company Limited	98.48%	1.49%
Bharti AXA Life Insurance Company Limited	99.05%	0.95%
Canara HSBC OBC Life Insurance Company Limited	97.1%	1.58%
Edelweiss Tokio Life Insurance Company Limited	97.01%	2.59%
Exide Life Insurance Company Limited	98.54%	0.22%
Future Generali Life Insurance Company Limited	94.86%	4.49%
HDFC Life Insurance Company Limited	98.01%	0.49%
ICICI Prudential Life Insurance Company Limited	97.9%	1.95%
IndiaFirst Life Insurance Company Limited	96.81%	2.68%
Kotak Mahindra Life Insurance Company Limited	98.5%	1.14%
Max Life Insurance Company Limited	99.35%	0.64%
PNB MetLife Life Insurance Company Limited	98.17%	1.83%
Pramerica Life Insurance Company Limited	98.61%	1.24%
Reliance Nippon Life Insurance Company Limited	98.49%	1.47%
Sahara India Life Insurance Company Limited	97.18%	1.81%
SBI Life Insurance Company Limited	93.09%	3.8%
Shriram Life Insurance Company Limited	95.12%	3.72%
Star Union Dai-ichi Life Insurance Company Limited	95.96%	3.55%
TATA AIA Life Insurance Company Limited	98.02%	1.94%
Life Insurance Corporation of India	98.62%	0.69%

Max Life and Aegon Life led the race with the highest claim settlement. LIC also posted a good figure of 98.62%.

Things to know about CSR

The CSR helps you pick the right insurer who would provide you with a smooth claim settlement experience. However, here are a few things to know about CSR –

CSR does not measure the claim amount settled by the insurer. It only measures the number of claims settled.
If a claim is raised towards the end of the financial year, it might remain outstanding when the CSR is calculated. This affects the CSR
If you make a fraudulent claim, it would be rejected, even if the insurance company has a high CSR.

The bottom line

Whilecomparing insurance companies to buy a life insurance policy, do check out the CSR. The ratio is updated every year and an insurer with a consistently high CSR is recommended as it means that the insurance company has consistently settled most of the claims raised on it.

Turtlemint wins “The Best Digitally-Enabled Enterprise” award hosted by BW Businessworld

January 25, 2022March 31, 2022 Sidharth Hampanavar

The eminent jury comprising industry veterans and seasoned BFSI stakeholders have selected and conferred Turtlemint with “The Best Digitally-Enabled Enterprise.” Being selected by such a prestigious jury is indeed an honor for us.

Turtlemint has been recognized for its contribution to the insurance ecosystem by way of adding a layer of digitization which has created micro-entrepreneurs across the length and breadth of the country as well as attracted new customers from tier 3 cities and beyond into the folds.

Turtlemint was launched with a single goal in mind, i.e., to improve insurance penetration in India. Our first and most important observation was that the insurance advisor has a pivotal role to play in the insurance ecosystem and in order to achieve our overarching goal we must choose to empower the insurance advisor. Accordingly, we set on the path of digital innovation and to create digital tools that can help the insurance advisors engage better with their customers and seamlessly sell the right insurance policies to the right individual. We are happy to note that our endeavors have fructified as is evidenced by the fact that Turtlemint has created and become the largest network of PoSP’s in India with 1,40,000 advisors and presence in 14,000+ pin codes out of the 19,000 pin codes in India and more than 4 million customers. Our digitally powered solutions are helping stakeholders in the insurance ecosystem leapfrog the digital growth curve and taking India closer to achieving universal insurance.

We are currently in the midst of unprecedented innovation with scores of companies optimally leveraging digital technology to build future ready enterprises. To be recognized as a digital innovator in the backdrop of the current landscape is indeed humbling. However, above everything, the award validates our belief that the future lies in a hybrid model that enables individuals to harness the power of digital solutions and generate value for the end consumer.

5 Clauses that lead to Rejection of Two-Wheeler Insurance Claim

January 5, 2022January 5, 2022 Sidharth Hampanavar

Two-wheeler insurance plans are a mandatory requirement given the rules of the Motor Vehicles Act, 1988. The policy covers the financial loss that you suffer in an emergency involving your two-wheeler. Since two-wheeler are a popular mode of conveyance for many, two-wheeler insurance plans are also quite in-demand. These policies are comprehensive and compensate you for any possible financial losses.

That being said, there are instances when your two-wheeler claim can get rejected. Here are 5 such clauses or reasons that might lead to claim rejection. Moreover, there are handy tips using which you can avoid possible rejections. So, read on –

Lapsed plan
The coverage of your bike insurance policy is valid for a specific time. Thereafter, you have to renew the policy for continuous coverage. For renewing, there is a due date up to which the coverage is available. If you do not renew the plan within the due date, the policy lapses. In a lapsed policy, coverage is not available. So, if you suffer a claim when the policy is in a lapsed state, your claim would be rejected.
How to avoid rejection?
Renew your policy within the due date every year. This would continue the coverage without any break and if you suffer a claim, the same would not be rejected.
The exclusion clause
Every two-wheeler insurance policy has a list of exclusions. These exclusions depict the instances when the claim is not payable. For example, drunk driving is excluded. If you are driving under the influence and you suffer a claim, your claim would be rejected.
How to avoid rejection?
Study the exclusion list of the policy. When you suffer a claim, check if the claim does not fall into the exclusion list. If it does, avoid making a claim to avoid rejections.
Inadequate coverage
Third party liability plans do not cover the damages that your bike incurs. Though they fulfil the legal mandate of owning a bike insurance policy, their coverage is inadequate. So, if you have invested in a third party policy and your bike suffers any type of damage, a claim for such a damage would be rejected because the policy does not cover it.
How to avoid rejection?
Opt for a comprehensive two wheeler insurance policy. It covers both third party liability and the damages that your bike suffers. In a comprehensive plan, you wouldn’t face rejections due to inadequate coverage.
Delay in filing the claim
Your bike insurance claims should be filed on time. Delays raise questions. Moreover, if you delay the claim considerably, the insurance company might reject the claim altogether fearing a possible fraud.
How to avoid rejection?
File your claims within time. Inform the insurer immediately after you suffer a claim and get the claim registered. Thereafter, file the claim within the specified timeline and get it settled at the earliest.
Fraudulent claims
It is a no brainer. If you make a fraudulent claim or if the company suspects foul play, your claim would be rejected. If your claim is, however, genuine, you can make an appeal to the insurer or raise a dispute. After the appeal or the dispute is resolved and the claim is found to be genuine, it would be settled.
How to avoid rejection?
Do not make fraud claims. It is as simple as that. To eliminate the possibility of foul play, back up your claims with documentation detailing the expenses incurred.

A good way to avoid rejection, while submitting a bike insurance claim, is to read the policy wordings carefully. It would highlight the coverage details as well as the exclusions. Also, follow the claim process so that your claim is settled easily and without delays.

Insurers have simplified the bike insurance claim process. As long as your claim clears the aforementioned clauses, your claim would be settled if you comply with the claim process and submit the relevant documents. Take help if needed but make sure to file the right claim for your bike insurance policy.

Disadvantages of letting your Car Insurance Lapse in 2022

January 5, 2022January 5, 2022 Ankita Sejpal

The New Year brings along new promises, new challenges and new beginnings. It motivates everyone to make better life resolutions. If you are a car owner, make a new year’s resolution in 2022 to not let your car insurance policy lapse at any time. Yes, it’s common to break the New Year’s resolution, but this is one resolution you should earnestly try to stick to. A car insurance cover is very important and there are many disadvantages of letting it lapse. Take a look at why you must keep your car insured at all times and also why it is disadvantageous to let your policy lapse in 2022.

Importance of car insurance

Let us begin by understanding why car insurance cover is so important. A car insurance cover offers many types of protection such as: it covers the third party liabilities, it pays for own damage and it also covers legal costs. This is why you must get a car insurance plan on priority. However, getting the plan alone is not enough. It is equally vital for you to renew the plan on time and keep the policy from lapsing.

Disadvantages of letting your car insurance lapse

2020 and 2021 have both been very challenging years for people across the globe. The pandemic hit families and while some people faced death and destruction within their closest circles, others faced financial troubles due to job losses, business failures, etc. 2022 is therefore the dawn of a fresh start and everyone is trying to stay motivated. At such a time, you should also look to start a new and resolve to make the correct financial moves. A good way to do so is by keeping your car insurance plan active at all times. If your car insurance plan lapses, you can face many financial challenges, apart from legal challenges, too. Here are some ways in which allowing a car insurance policy to lapse can be disadvantageous:

Legal trouble
You can get into serious legal trouble if you do not renew your car insurance policy on time. The law in India makes it compulsory for every car owner to have an active motor insurance policy when he takes the car out on the streets of India. If you are caught driving your car without a valid motor insurance plan, you will be fined heavily and may even be arrested.
No third party cover
As a responsible motorist, it is your job to take care of any third party who may get injured in an accident involving your vehicle. It is also your job to ensure you pay for the damages incurred to the third party’s vehicle or property. When you have a valid car insurance plan, the insurer compensates the third party on your behalf. However, if it stays lapsed, you have to bear all the third party liability expenses from your own pocket and that can become very expensive.
No own damage cover
Much in the same way, you won’t get any compensation from the insurer for damages to your own vehicle, too; if your policy is in a lapsed state. Repairing your car can be an expensive thing to do, so avoid having to pay the bills yourself by simply renewing the motor insurance plan on time.
No personal accident cover
Most motor insurance plans have an in-built personal accident cover. This is important because it offers financial support to your family if anything happens to you. However, the sum assured is not paid out when the policy remains in a lapsed state.
Loss of no claim bonus
Lastly, if you do not renew your coverage within 90 days of lapse, any accumulated no claim bonus that you might have would become zero. This is especially bad if you have accumulated a considerable bonus, say 30% or 50%, which can give you premium discounts on renewal.

As you can see, all these factors can lead to you incurring heavy financial losses. A car insurance plan is quite affordable and all you have to do is renew it on time to keep the policy active. By renewing on time you can safeguard your vehicle and your finances in an easy and hassle-free manner.

So, this 2022, ensure that you keep your car insurance coverage active so that you can not only enjoy the coverage but also comply with the traffic rules and avoid possible penalties.