The new volume builds on the first edition of the handbook, released by the IRDAI Chairman T S Vijayan on March 10, 2017, by adding ratios on number of claims outstanding, number of claims repudiated, and number of claims settled to offer a broader perspective to policyholders.
The analysis is based on the number of claims and not the claim amounts reported each quarter. Data on corresponding claim amounts is not available in public domain. In the first volume of the handbook, ratios pertaining to number of claims pending for settlement for over one year and number of claims settled within three months alone were considered.
Insurers are evaluated and ranked basis the above five criteria for individual lines of business, i.e., Fire, Marine Cargo, Marine Hull, Motor Own Damage, Motor Third Party, Health and Miscellaneous, and for all lines of business combined.
The handbook intends to capture data in these parameters and present it in a lucid and accessible manner, which would help policyholders in making an informed decision while choosing a general insurance policy.
At the heart of an insurance contract is the claims process. After all, it is financial certainty at the face of unforeseen risk that drives policy holders. The denial or delay of a claim leads to considerable hardship for the policyholder.
The handbook provides policyholder and prospective buyers a resource with details of the percentage of claims delayed or denied by general insurers. Insurance brokers, as representatives of policyholders’ interests, are uniquely positioned to undertake this initiative.
It is one of the first such initiatives to look at insurance transactions in the country from a claims perspective, i.e., from the point of view of policyholders. Insurance brokers, as representatives of policyholders’ interests, have taken up this initiative in line with the IBAI’s theme of “Advancing Policyholders’ Interests”.ENDS