The Insurance Brokers Association of India (IBAI) has released a handbook that compares the claims repudiation ratios of various Indian insurers. The data is for the fiscal year 2023, the latest available. The claims repudiation ratio is the percentage of claims rejected out of the total number of claims closed by an insurer. A lower ratio is better for customers.
According to the handbook, New India Assurance has the lowest overall claims repudiation ratio of 0.2%, making it the best among all Indian insurers. Its health insurance and motor own-damage insurance claims repudiation ratios are also the lowest at 0.2% and 0.5%, respectively. Other insurers with low overall claims repudiation ratios include HDFC Ergo, Aditya Birla Health, and Future Generali.
The handbook also highlights some insurers with higher claims repudiation ratios in specific segments. In the health insurance sector, Chola MS, Tata AIG, and Star Health have raised concerns with rejection rates of 15.3%, 19.1%, and 18.5%, respectively. In the motor own-damage segment, Chola MS, Magma HDI, and Navi General have higher rejection rates of 9.3%, 10.9%, and 15.8%, respectively.
Interestingly, New India Assurance, the only listed public sector insurer, outperforms other public sector insurers in terms of claims repudiation ratio. National Insurance, Oriental Insurance, and United India have overall claims repudiation ratios of 8.3%, 9.9%, and 5.4%, respectively. Similarly, in the health insurance and motor own-damage segments, these public sector insurers have higher rejection rates.
Overall, the IBAI handbook provides valuable insights into the performance of various Indian insurance companies in terms of claims repudiation ratio. It enables customers to make informed decisions when selecting an insurance provider.