We cannot blame the insurers totally as the policy holders are also equally responsible. If a claim gets rejected the key reasons behind that rejection is non-disclosure of facts or wrong information provided by the policy holders. Next time when you go to a financial advisor ask for the claim settlement record of your insurer and do the paperwork by yourself instead giving to an agent.

If you don’t find your financial advisor trustworthy then the best option is to go online and research on the insurer’s website. Always, try to buy policy from a company whose claim settlement ratio is more than 95 percent.

It is seen that most of the old companies have lower rejection ratios and non-early claims. Also, the insurers are not allowed to reject claims if the policy holder has not disclosed the facts and if the policy is in force for two year or more. If you choose a new company for a policy then it is obvious that it will have early claims and high repudiation ratio, but don’t stop there and research on that company thoroughly.

Claim pending ratio is also helpful in ascertaining the time taken by insurer to settle claims. Higher the claim pending ratio higher will be the company’s inefficiency in processing claims. The claim pending ratio for the private insurers seems to be around 7.68 percent according to the annual report given by the IRDA. As per the rules the claims should be decided within six months, as the ageing of claims depends on the claim pending ratio. It is not good if there are too many claims that are pending for more than three years.

In order to find out the maximum time that company will take to settle your claims check for the turnaround time of claim settlement. Also, check if a huge proportion of claims have been settled after or more than 180 days.

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