Best Car Insurance Claim Settlement Ratio Companies in India

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:

Details of Best Car Insurance Companies Based on Their Claim Settlement Ratio

• 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 Influencing Claim Settlement Ratios of Car Insurance Companies

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.

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.

FAQs

What is the time limit for claim settlement?

Ans. Most claims are settled within 30 days of raising the claim. This is the time limit set by IRDAI is 30 days. If claims are not settled within this timeline, the CSR of the company is impacted negatively.

What is claim settled percentage?

Ans. Claim settlement ratio or CSR is the percentage of claims settled by an insurer in a financial year in comparison to the total number of claims made. Read more here.

Which company insurance is best for cars?

Ans. Based on the claim settlement ratio of the companies HDFC Ergo is the best insurance company for car/ motor insurance. The CSR of HDFC Ergo is 100%. 

Which protection is best for car?

Ans. Zero dep cover is best for your car and you can choose to take this with comprehensive car insurance or a stand alone own damage car insurance. InsuranceDekho recommends taking comprehensive car insurance to get coverage for both third party and your car.

What are the benefits of motor insurance?

Ans. The major benefit of having a motor insurance is getting financial protection for your vehicle and financial and legal protection when in an accident with a third party where you accidently damage their vehicle or property or injure them.

Why is motor insurance mandatory?

Ans. A motor or car insurance is not entirely mandatory but is good to have since it provides you with a safety net in case of an accident on the road with a third party by giving financial and legal protection. In case you damage your vehicle, lose it to theft, natural or man made calamity or in fire, a motor vehicle insurance also protects you financially in that case. It is only the third party motor insurance and personal accident cover that is mandatory by law. 

Is NCB or no claim bonus available for all motor insurance?

Ans. Yes, the feature of availing a no claim bonus is available for all motor insurance (car as well as bike). However, the amount differs from insurer to insurer.

How many types are in motor insurance?

Ans. There are three types of motor insurance - third party, own damage and comprehensive car insurance. While a third party caters to legal and financial liabilities against a third party, stand alone own damage protects your vehicle and comprehensive gives benefits of both third party and own damage.

Which motor insurance is compulsory?

Ans. Having a third party car or bike insurance is compulsory. Additionally, having a personal accident cover is also mandatory for all vehicle owners.

What is premium rate for long term third party car insurance (3 years)?

Ans. The premium rate for long term third party insurance (3 years) is INR 6,521 for car with less than 1000 cc engine, INR 10,640 for cars above 1,000 cc but less than 1,500 cc, INR s. 24,596 for cars with more than 1500 cc.

For further reading:

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

How to Claim Car Insurance After Meeting an Accident in India

Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive and should research further or consult an expert in this regard.