Percentage of claims paid by insurer against total claims received in a financial year.
Claim Settlement Ratio (CSR) is a crucial reliability metric published annually by IRDAI. It represents the percentage of claims an insurance company has successfully paid out compared to the total number of claims received (including pending claims) during a financial year.
If a life insurer receives 10,000 death claims in a financial year and successfully settles 9,850 claims while rejecting 150 invalid claims, its Claim Settlement Ratio (CSR) is 98.5%.
CSR measures the number of claims paid. Incurred Claim Ratio (ICR) measures the total monetary value of claims paid as a percentage of total premiums collected.
Many policyholders misunderstand this clause until a claim actually occurs. Always verify the exact definitions in your policy wording schedule rather than relying on verbal marketing summaries. Disclose all material facts truthfully at the time of proposal to help ensure smooth claim assessment without non-disclosure issues.
IRDAI publishes official audited CSR data in its annual report every year. Intermediaries must cite official IRDAI figures neutrally.
Look for life insurance companies with a consistent historical CSR above 97% to 98%.
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