What is Claim Repudiation Ratio?

Insurers always play the game on Claim Settlement Ratio specially the King in the market boasts of having the undisputable claim settlement ratio.

Consumers are being convinced on this ratio by showing colorful numbers but the fact is one should buy an Insurance Policy based on the CLAIM REPUDIATION RATIO and not on CLAIM SETTLEMENT RATIO. Logic is as below.

Claim settlement ratio = No of Policy settled / No of Policies issued by the company 

AND

Claim Repudiation Ratio = No of Claims Rejected / No of Claims made

So as the insurance company grows automatically its Claim settlement ratio also improves.

But the fact remains that company has to be fair at the time of settleing the claim or it immensely affects its Claim Repudiation Ratio


Note – The information posted is issued in public interest and consumer awareness. Any individual or institution having any issues regarding the same can mail me at chintan.dedhia@live.com