1. CSR should be used as just one of the factors while converging on a Term policy, due to several other reasons as I have mentioned.
2. In fact, IRDA does not even differentiate between CSR of pure term life insurance and investment-oriented life insurance policies.
3. CSR is just a simple statistical ratio of settled claims and does not represent the probability of claim acceptance in future.
4. It doesn't provide info on:-
a) types of policies covered
b) breakup of sum insured
c) reasons for rejected claims
d) cause of the deaths claimed
e) right and wrong rejection.
5. As the burden of proving fraud lies with the insurer, and also if there is a delay in claims by the nominee, CSR will get affected.
6. As CSR is a sum total ratio, if two insurers merge in future, CSR could change drastically which a new customer can't decipher.
7. If CSR would be so sacrosanct, only LIC policies would sell, although it has rejected far more number of claims.
8. Instead, several private insurers have made significant headway in selling policies, notwithstanding their lower CSR, and subsequent years would increase their CSR too.
9. At best, CSR should be used to weed out the worst, within a common span of operations, instead of selecting the best.
10. Although choice of an insurer is personal, with time the "CSR short-cut" method should eventually give way to more logical hands-on selection, by believing in truthful declaration at the outset itself, from various insurers.
2. In fact, IRDA does not even differentiate between CSR of pure term life insurance and investment-oriented life insurance policies.
3. CSR is just a simple statistical ratio of settled claims and does not represent the probability of claim acceptance in future.
4. It doesn't provide info on:-
a) types of policies covered
b) breakup of sum insured
c) reasons for rejected claims
d) cause of the deaths claimed
e) right and wrong rejection.
5. As the burden of proving fraud lies with the insurer, and also if there is a delay in claims by the nominee, CSR will get affected.
6. As CSR is a sum total ratio, if two insurers merge in future, CSR could change drastically which a new customer can't decipher.
7. If CSR would be so sacrosanct, only LIC policies would sell, although it has rejected far more number of claims.
8. Instead, several private insurers have made significant headway in selling policies, notwithstanding their lower CSR, and subsequent years would increase their CSR too.
9. At best, CSR should be used to weed out the worst, within a common span of operations, instead of selecting the best.
10. Although choice of an insurer is personal, with time the "CSR short-cut" method should eventually give way to more logical hands-on selection, by believing in truthful declaration at the outset itself, from various insurers.