Insurance companies Settled claims of only 86 rupees after taking a premium of 100 rupees, shocking report from IRDA.

If you are purchasing health or any other insurance policy, be sure to check how much claim settlement, companies are providing in return for the premiums charged from you. This is because, in the recent report of the Insurance Regulatory and Development Authority of India (IRDAI), it has been claimed that general, health and Public sector insurance companies pay a claim of only Rs 86 for a premium of Rs 100. Some insurance companies are giving a claim of only Rs 56 for a premium of Rs 100.

In 2023-24, insurance companies settled a total of 83 per cent of claims and rejected 11 per cent. Six percent of the claims remained pending till March 31, 2024. During this period, general and health insurance companies settled a total of 2.69 crore health claims and paid Rs 83,493 crore. The average amount per claim was Rs 31,086.

Analysts say the average of 100 percent and 80 percent in premium collection and claims settlement respectively is satisfactory.

Of the total claims, 72 percent were settled by third parties administrators (TPAs). The remaining 28 percent claims were settled by the companies in their own way. 66.16 percent claims were settled cashless, while 39 percent received reimbursement.

The claims from Public Sector companies have been more than Rs 90 against the premium of Rs 100. National Insurance has taken a premium of Rs 100 and settled a claim of Rs 90.83. New India has given a claim of Rs 105.87, Oriental has given a claim of Rs 101.96 and United India has given a claim of Rs 109. The average claim of all Public Sector Insurance companies has been Rs 103.

Performance of general insurance companies

Performance of health insurance companies

(Claim settlement against premium of Rs 100)

Source : https://www.amarujala.com/business/business-diary/insurance-companies-pay-only-rs-86-as-claim-for-a-premium-of-rs-100-shocking-report-by-irdai-2024-12-26