1. Claim Settlement Ratio (CSR) is an important attribute in choosing life insurance policies and can go to as high as 99%.
2. IRDA officially releases this data to the general public on its website.
3. In the first 2 years, an insurer is allowed to deny a claim if the cause of death is suicide, or there was “misrepresentation” while applying.
4. Due to this, insurers with older customer base are likely to have higher CSR than newer companies.
5. One can't totally deny that private insurers litigate more before settlement, but that shouldn't be the sole criteria of selection if your application is totally honest and truthful, as their lower premiums cannot be ignored.
6. However, if an insurer can establish a fraud within 3 years, then it can cancel the policy, deny a death claim and even refund of premium.
7. If misrepresentation or suppression of facts (not amounting to a fraud) is detected, the premiums may get returned without death claim payment.
8. As frauds committed by customers cannot be blamed on insurers, chasing and denying such claims is in the interest of good customers, even if it is at the cost of CSR going down.
9. Always prefer buying a term policy online, as it is in your interest (not the agent’s) to ensure that you fill every detail in the application form yourself only without any margin of error.
10. Also, you must declare everything and answer every question honestly to the medical examiner, even pointing out anything that is missing, and ensure it is noted, as it could be a reason for claim rejection later when you are not around any more.
2. IRDA officially releases this data to the general public on its website.
3. In the first 2 years, an insurer is allowed to deny a claim if the cause of death is suicide, or there was “misrepresentation” while applying.
4. Due to this, insurers with older customer base are likely to have higher CSR than newer companies.
5. One can't totally deny that private insurers litigate more before settlement, but that shouldn't be the sole criteria of selection if your application is totally honest and truthful, as their lower premiums cannot be ignored.
6. However, if an insurer can establish a fraud within 3 years, then it can cancel the policy, deny a death claim and even refund of premium.
7. If misrepresentation or suppression of facts (not amounting to a fraud) is detected, the premiums may get returned without death claim payment.
8. As frauds committed by customers cannot be blamed on insurers, chasing and denying such claims is in the interest of good customers, even if it is at the cost of CSR going down.
9. Always prefer buying a term policy online, as it is in your interest (not the agent’s) to ensure that you fill every detail in the application form yourself only without any margin of error.
10. Also, you must declare everything and answer every question honestly to the medical examiner, even pointing out anything that is missing, and ensure it is noted, as it could be a reason for claim rejection later when you are not around any more.