Top Car Insurance Companies in India by Claim Settlement Ratio

In today’s time, with so many car insurance plans available, it often becomes difficult to pick the best one. So, to make the best choice, there are certain factors which you should consider while buying. One good parameter to compare different insurance policies is the car insurance Claim Settlement Ratio (CSR). Read on to know all about car insurance claim settlement ratios as well as the best companies based on their claim settlement ratio. 

What Is Claim Settlement Ratio?

Claim settlement ratio or CSR refers to the total number of claims settled against the total number of claims received by an insurer in a financial year. In simple terms for customers, the claim settlement ratio is the best parameter that helps them evaluate the creditworthiness of the insurer in settling claims. Generally, an insurance company with a claim settlement ratio of more than 80% is considered to be a good one.

So, wherever you are buying a car insurance plan, always make sure to check the claim settlement of the insurer, first and foremost. You can find all the details about the claim settlement ratio on the respective websites of the insurance companies. 

Best Car Insurance Company on The Basis of Claim Settlement Ratio (CSR)

While there are several parameters to look at during your selection process for a car insurance policy, it is extremely important to look at a company’s claim settlement ratio or CSR as it gives an understanding of how customer centric a company is and how swiftly they will solve your claims at the time of need. Mentioned below are the top 5 car insurance company in India in 2024 based on their claim settlement ratio along with their network garage list, founding year and key features:

Key Features of the Best Car Insurance Companies

• HDFC Ergo Car Insurance: HDFC Ergo has moved back to the top of the chart when it comes to the best car insurance companies in India based on its claim settlement ratio. The current CSR of HDFC Ergo car insurance is 100%. Headquartered in Mumbai, Maharashtra the company offers up to 50% no claim bonus discount and 6 different add ons to customise your car insurance plan as per your need. 

• Royal Sundaram Car Insurance: Founded in the year 2001, Royal Sundaram car insurance has maintained its position for the second time in a row. With its headquarters in Chennai, Tamil Nadu the company offers 11 different add ons to choose from with unique add ons like windshield glass cover, aggravation damage cover, and voluntary deductible cover.

• Reliance General Car Insurance: With a claim settlement ratio of 98%, Reliance General car insurance stands at number 3 along with SBI and Bajaj Allianz car insurance. Reliance car insurance has also managed to maintain its position similar to Royal Sundaram car insurance for the second consecutive year. There are 10+ available add ons to choose from with unique ones being EMI protection, RIM protection, Geo extension, electric and non electric accessories protection.

• SBI Car Insurance: Another contender who continued to rank in the top car insurance companies based on their CSR is SBI car insurance. There are a total of 13 add ons to choose from. SBI motor insurance offers spot claims of up to 20,000 rupees, and has a claim settlement ratio of 98%.

• Bajaj Allianz Car Insurance: Meet the newest entry in the list of best companies for motor insurance in 2024 based on claim settlement ratio. Bajaj Allianz car insurance has a CSR of 98% and offers 10 add ons to choose from. The company also offers spot claims of up to 30,000 rupees.

Factors Affecting Claim Settlement Ratio in Car Insurance

In an attempt to simplify your understanding of claim settlement ratio, here’s a look at the factors that impact and influence claim settlement ratio of your car insurance companies:

• Company Policy: One factor that is responsible for a company’s changing CSR is its policies and updates to follow the mandate of IRDAI. 
• Efficiency of Claim Processing: IRDAI keeps a tap at the efficiency at which a car insurance company processes and settles claims. If the efficiency is not maintained, the CSR of the company drops.
• Service Quality & Customer Centricity: While no company says they are not customer centric, there are few who actually abide by their word when it comes to providing excellent service to its customers. Depending on the quality of service provided, claim settlement ratio may change.
• Claim Rejection Due to Insufficient Documentation: When a customer submits insufficient documentation and a claim is rejected, the CSR of a company goes down. This not only impacts the customers in getting paid less or getting no payment, it also negatively affects the insurer.
• Claim Rejection Due to False Documentation: When a customer’s claim is rejected due to submission of false documentation or false claim, the CSR of the insurer goes down.
• Claim Settlement Date Exceeding 30 Days: The Insurance Regulatory and Development Authority of India (IRDAI) has capped a 30 days timeline for setting all claims raised. When this timeline exceeds and claims are not settled within 30 days, the CSR of an insurance company gets impacted negatively.

Why is a High Claim Settlement Ratio Important?

Claim settlement ratio indicates an insurer’s efficiency and swiftness in settling insurance claims. If an insurer can settle 90 out of 100 claims received within a year, their claim settlement ratio is 90%. 

A high claim settlement ratio signifies reliability and trustworthiness for those seeking car insurance. Insurance companies with higher claim settlement ratios indicate that they settle claim settlements swiftly and efficiently. 

In car insurance, a high CSR matters, as many insurers take time to settle car insurance claims. To determine whether an insurance company is reliable, take a look at their past 5 years’ CSR. If it draws a consistent graph, you can proceed with them.

Conclusion

In a nutshell, we can say the performance of any car insurance company is best judged based on its claim settlement ratio. So, as a customer, you should always check the claim settlement ratio on the official website of the insurance company. In addition, you should also consider other factors such as premium cost, coverage offered, and more while selecting any car insurance plan.

For further reading:

How To Make A Hassle-Free Car Insurance Policy Claim?

How to Claim Car Insurance After Meeting an Accident in India