GENERAL INSURANCE CLAIM INSIGHTS FOR POLICYHOLDERS …ibai.org/wp-content/uploads/2017/09/IBAI-Handbook-Vol-2_Single... · GENERAL INSURANCE CLAIM INSIGHTS FOR POLICYHOLDERS A HANDBOOK

INSURANCE BROKERS ASSOCIATION OF INDIA

GENERAL INSURANCECLAIM INSIGHTS FOR

POLICYHOLDERS

A HANDBOOK - JULY 2017

ABOUT THE HANDBOOK 4

ABOUT INSURANCE BROKERS 4

ABOUT INSURANCE BROKERS ASSOCIATION OF INDIA 4

METHODOLOGY 5

OVERALL INSURERS’ COMPARISON: SOLVENCY RATIO 7

OVERALL INSURERS’ COMPARISON: CLAIMS SETTLEMENT EFFICIENCY RATIO 9

OVERALL INSURERS’ COMPARISON: CLAIMS PENDENCY RATIO 10

OVERALL INSURERS’ COMPARISON: CLAIMS SETTLEMENT RATIO 11

OVERALL INSURERS’ COMPARISON: CLAIMS REPUDIATION RATIO 12

OVERALL INSURERS’ COMPARISON: CLAIMS OUTSTANDING RATIO 13

FIRE: CLAIMS SETTLEMENT EFFICIENCY RATIO 14

FIRE: CLAIMS PENDENCY RATIO 15

FIRE: CLAIMS SETTLEMENT RATIO 16

FIRE: CLAIMS REPUDIATION RATIO 17

FIRE: CLAIMS OUTSTANDING RATIO 18

MARINE CARGO: CLAIMS SETTLEMENT EFFICIENCY RATIO 19

MARINE CARGO: CLAIMS PENDENCY RATIO 20

MARINE CARGO: CLAIMS SETTLEMENT RATIO 21

MARINE CARGO: CLAIMS REPUDIATION RATIO 22

MARINE CARGO: CLAIMS OUTSTANDING RATIO 23

MARINE HULL: CLAIMS SETTLEMENT EFFICIENCY RATIO 24

MARINE HULL: CLAIMS PENDENCY RATIO 25

MARINE HULL: CLAIMS SETTLEMENT RATIO 26

MARINE HULL: CLAIMS REPUDIATION RATIO 27

CONTENTS

CONTENTS

MARINE HULL: CLAIMS OUTSTANDING RATIO 28

MOTOR OD: CLAIMS SETTLEMENT EFFICIENCY RATIO 29

MOTOR OD: CLAIMS PENDENCY RATIO 30

MOTOR OD: CLAIMS SETTLEMENT RATIO 31

MOTOR OD: CLAIMS REPUDIATION RATIO 32

MOTOR OD: CLAIMS OUTSTANDING RATIO 33

MOTOR TP: CLAIMS SETTLEMENT EFFICIENCY RATIO 34

MOTOR TP: CLAIMS PENDENCY RATIO 35

MOTOR TP: CLAIMS SETTLEMENT RATIO 36

MOTOR TP: CLAIMS REPUDIATION RATIO 37

MOTOR TP: CLAIMS OUTSTANDING RATIO 38

HEALTH: CLAIMS SETTLEMENT EFFICIENCY RATIO 39

HEALTH: CLAIMS PENDENCY RATIO 41

HEALTH: CLAIMS SETTLEMENT RATIO 43

HEALTH: CLAIMS REPUDIATION RATIO 45

HEALTH: CLAIMS OUTSTANDING RATIO 47

MISCELLANEOUS: CLAIMS SETTLEMENT EFFICIENCY RATIO 49

MISCELLANEOUS: CLAIMS PENDENCY RATIO 50

MISCELLANEOUS: CLAIMS SETTLEMENT RATIO 51

MISCELLANEOUS: CLAIMS REPUDIATION RATIO 52

MISCELLANEOUS: CLAIMS OUTSTANDING RATIO 53

WHY AVAIL OF AN INSURANCE BROKER? 54

SOURCES AND LIMITATIONS OF CONSIDERED DATA 55

GLOSSARY 57

DISCLAIMER 58

ABOUT THE HANDBOOKThis handbook is a part of the continued efforts of the Insurance Brokers Association of India (IBAI) to provide additional data to help policyholders make an informed decision by analyzing general insurers from a claims perspective.

ABOUT INSURANCE BROKERSInsurance Brokers are the only intermediaries who represent the policyholders’ interest and are regulated by the IRDAI (Insurance Brokers) Regulations, 2013. Insurance brokers are the fastest growing among insurance distribution channels contributing to about INR 19,300 crores of gross direct premium in FY15 resulting in 23.2% of the non-life insurance premium. Insurance Broking registered the highest CAGR of 27.7% between FY10 and FY15 among the major channels in non-life insurance. As per the EY Vision 2025 report on Insurance Brokers Driving Customer Centric Growth, it is expected that insurance broking will contribute close to 40% of gross direct premium in non-life insurance in the progressive scenario.As per the report, non-life insurance market in 2025 is expected to be at Rs. 4,00,000 Crs and brokers’ market share is likely to be around Rs.1,60,000 Crs.

ABOUT INSURANCE BROKERS ASSOCIATION OF INDIAInsurance Brokers Association of India (IBAI) is the only Insurance Regulatory and Development Authority of India (IRDAI) recognized apex body of licensed Insurance Brokers. As per Insurance Brokers’ Regulations 2002 framed by the IRDAI, all licensed Brokers are required to be members of IBAI. As of April 30, 2017, there are 391insurance brokers in India, including Direct Insurance Brokers, Composite Insurance Brokers and Re-insurance Brokers.

4

METHODOLOGYThis study considers the following criteria to analyze the claims data of insurers, which are published on their respective websites as a part of IRDAI Regulations.

Please note the denominator for the Claim Settlement Efficiency Ratio, Claims Pendency Ratio, Claims Settlement Ratio, Claims Repudiation Ratio and Claims Outstanding Ratio is defined as below:

Total Claims Available for Processing = Total Claims Outstanding at the beginning of the Quarter ended September 30th, 2016 + Total Claims Reported in the Quarter ended September 30th, 2016.

1. Solvency Ratio The ability of an insurance company to pay the claim, i.e., its financial strength. “Higher the Solvency Ratio, better is the ability of an insurer to pay the claim”

2. Claims Settlement Efficiency Ratio % The efficiency of an insurance company to settle the claims, i.e.,the number of claims

settled in 3 months as compared to the total number of claims available for processing.

“Higher the claims settlement efficiency ratio, better is an insurance company in terms of the measured ratio”

Claims Settlement Efficiency Ratio = Total number of claims settled within 3 months for the quarter ended

September 30th, 2016 Total Claims available for processing for the Quarter ended September 30th, 2016

3. Claims Pendency Ratio % The number of claims that are pending for more than 1 year out of the total number

of claims available for processing. “Lower the claims pendency ratio, better is an insurance company in terms of the

measured ratio”

Claims Pendency Ratio = Total number of claims o/s for more than 1 year for the quarter ended

September 30th, 2016 Total Claims available for processing for the Quarter ended September 30th, 2016

4. Claims Settlement Ratio % The number of claims settled during the quarter from the total claims available for

processing. “Higher the claims settlement ratio, better is an insurance company in terms of the

measured ratio”

Claims Settlement Ratio = Total number of claims settled during the quarter ended September 30th, 2016 Total Claims available for processing for the Quarter ended September 30th, 2016

5

5. Claims Repudiation Ratio % The number of claims that were repudiated during the quarter by the insurer out of the

total number of claims available for processing. “Lower the claims repudiation ratio, better is an insurance company in terms of the

measured ratio”

Claims Repudiation Ratio = Total number of claims repudiated during the quarter ended September 30th, 2016 Total Claims available for processing for the Quarter ended September 30th, 2016

6. Claims Outstanding Ratio % The number of claims that were outstanding at the end of the quarter out of the total

number of claims available for processing. “Lower the claims outstanding ratio, better is an insurance company in terms of the

measured ratio”

Claims Outstanding Ratio = Total number of claims outstanding at the end of the quarter ended September 30th, 2016 Total Claims available for processing for the Quarter ended September 30th, 2016

Insurers are evaluated and ranked for the above 6 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.

INSURER CATEGORIESInsurers are categorized into four different categories according to the Gross Premium Written by them in that line of business for the quarter ended 30th September 2016 from NL 26 disclosure for respective insurers. For ratios based on all lines of business combined, the total premium written is considered.

a. Public Sector General Insurers

b. Large Private Sector General Insurers: The top 10 private sector general insurers on the basis of the gross premium written in that line of business for line of business wise ratios for the specified period.

c. Small Private Sector Insurers: The remaining private sector insurers.

d. Standalone Health Insurers: The claims settlement efficiency ratio, claims repudiation ratio, claims outstanding ratio, claims settlement ratio and claims pendency ratio were considered for the Health line of business only for the following -

i. Apollo Munich Health Insurance ii. Max Bupa Health Insurance iii. Religare Health Insurance iv. Star Health and Allied Insurance v. Cigna TTK Health Insurance

6

Solvency Ratio as on September 30, 2016 - The ability of an insurance company to pay the claim, i.e., its financial strength.

Higher the Solvency Ratio, better is the ability of an insurer to pay the claim

OVERALL INSURERS’ COMPARISON: SOLVENCY RATIO

PUBLIC SECTOR GENERAL INSURERS RANK INSURER SOLVENCY RATIO %

1 New India 2.04 2 United India 1.56 3 National 1.26* 4 Oriental 1.14*

LARGE PRIVATE SECTOR GENERAL INSURERS RANK INSURER SOLVENCY RATIO %

1 Bajaj Allianz 2.53 2 Shriram General 2.07 3 ICICI Lombard 2.03 4 SBI General 2.00 5 Reliance General 1.81 6 Royal Sundaram 1.66 7 IFFCO Tokio 1.64 8 Tata AIG 1.64 9 Chola MS 1.64

10 HDFC Ergo 1.52

SMALL PRIVATE SECTOR GENERAL INSURERS RANK INSURER SOLVENCY RATIO %

1 Raheja QBE 4.44 2 Liberty Videocon 4.09 3 Magma HDI 1.99 4 Bharti AXA 1.80 5 Universal Sompo 1.56 6 Future Generali 1.51

7

Note: The IRDAI prescribed minimum solvency ratio is 1.5 times the net written premium and net written claims at all times, according to the IRDA (Assets, Liabilities, and Solvency Margin of General Insurers) Regulations, 2000 vide circular no. 045/IRDA/F&A/Mar-06 dated March 31, 2006, applicable retrospectively from April 01, 2005. *The solvency ratios of the below insurance companies are below the prescribed limit as explained above.

STANDALONE HEALTH INSURERS RANK INSURER SOLVENCY RATIO %

1 Max Bupa 2.44 2 Religare Health 2.21 3 Cigna TTK 1.68 4 Apollo Munich 1.62 5 Star Heatlh 1.59

8

*Please note that the above ranks have been derived on the basis of ratios calculated upto two decimal places. For the sake of simplicity, the data has been rounded off. This data is based on the number of claims and not claim amount. Data on corresponding claim amount is not available.

Claims Settlement Efficiency Ratio % for the quarter ended September 30, 2016 - The efficiency of an insurance company to settle the claims, i.e. the number of claims settled in 3 months as compared to the total number of claims available for processing, i. e., the total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.Claims Settlement Efficiency Ratio = Total number of claims settled in 3 months for the quarter ended September 30th, 2016Total Claims available for processing for the Quarter ended September 30th, 2016

Higher the Claims Settlement Efficiency Ratio, better is an insurance company in terms of the measured ratio

OVERALL INSURERS’ COMPARISON:CLAIMS SETTLEMENT EFFICIENCY RATIO

PUBLIC SECTOR GENERAL INSURERS RANK INSURER CLAIMS SETTLEMENT EFFICIENCY RATIO %

1 New India 66.59% 2 United 48.98% 3 Oriental 40.55% 4 National 26.51%

LARGE PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS SETTLEMENT EFFICIENCY RATIO %

1 Royal Sundaram 65.53% 2 ICICI Lombard 59.34% 3 HDFC Ergo 54.99% 4 IFFCO Tokio 52.62% 5 Tata AIG 52.54% 6 Bajaj Allianz 51.51% 7 SBI General 39.67% 8 Chola MS 37.06% 9 Reliance 33.82%

10 Shriram GI 14.25%

SMALL PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS SETTLEMENT EFFICIENCY RATIO %

1 Liberty Videocon 67.40% 2 Future Generali 64.81% 3 Universal Sompo 63.77% 4 Bharti Axa 54.10% 5 Magma HDI 38.31% 6 Raheja QBE 7.33%

9

Claims Pendency Ratio % for the quarter ended September 30, 2016 – The number of claims that were pending for more than 1 year out of the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.Claims Pendency Ratio = Total number of claims o/s for more than 1 year for the quarter ended September 30th, 2016Total Claims available for processing for the Quarter ended September 30th, 2016

Lower the Claims Pendency Ratio,better is an insurance company in terms of measured ratio

OVERALL INSURERS’ COMPARISON:CLAIMS PENDENCY RATIO


PUBLIC SECTOR GENERAL INSURERS RANK INSURER CLAIMS PENDENCY RATIO%


LARGE PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS PENDENCY RATIO%

1 IFFCO Tokio 0.71% 2 ICICI Lombard 5.93% 3 Tata AIG 7.13% 4 SBI General 8.30% 5 HDFC Ergo 10.66% 6 Royal Sundaram 12.28% 7 Bajaj Allianz 14.18% 8 Reliance 23.07% 9 Chola MS 31.15%


SMALL PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS PENDENCY RATIO%

1 Liberty Videocon 1.53% 2 Universal Sompo 5.31% 3 Future Generali 8.45% 4 Bharti Axa 13.10% 5 Magma HDI 15.87% 6 Raheja QBE 24.67%

10


Claims Settlement Ratio % for the quarter ended September 30, 2016 - The number of claims settled in the quarter from the total claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.Claims Settlement Ratio = Total number of claims settled during the quarter ended September 30th, 2016Total Claims available for processing for the quarter ended September 30th, 2016

Higher the Claims Settlement Ratio,better is an insurance company in terms of the measured ratio

OVERALL INSURERS’ COMPARISON:CLAIMS SETTLEMENT RATIO

PUBLIC SECTOR GENERAL INSURERS RANK INSURER CLAIMS SETTLEMENT RATIO%


LARGE PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS SETTLEMENT RATIO%

1 Royal Sundaram 70.79% 2 HDFC Ergo 67.29% 3 ICICI Lombard 64.38% 4 IFFCO Tokio 64.01% 5 Tata AIG 63.29% 6 Bajaj Allianz 59.47% 7 SBI General 53.75% 8 Chola MS 41.79% 9 Reliance 39.98%


SMALL PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS SETTLEMENT RATIO%

1 Universal Sompo 77.61% 2 Liberty Videocon 72.81% 3 Future Generali 69.01% 4 Bharti Axa 62.16% 5 Magma HDI 50.72% 6 Raheja QBE 18.67%

11

Claims Repudiation Ratio % for the quarter ended September 30, 2016 - The number of claims that were repudiated during the quarter out of the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.Claims Repudiation Ratio = Total number of claims repudiated during the quarter ended September 30th, 2016Total Claims available for processing for the Quarter ended September 30th, 2016

Lower the Claims Repudiation Ratio,better is an insurance company in terms of the measured ratio

OVERALL INSURERS’ COMPARISON:CLAIMS REPUDIATION RATIO


PUBLIC SECTOR GENERAL INSURERS RANK INSURER CLAIMS REPUDIATION RATIO%

1 New India 1.22% 2 National 2.69% 3 United 2.83% 4 Oriental 4.26%

LARGE PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS REPUDIATION RATIO%

1 IFFCO Tokio 0.05% 2 Royal Sundaram 1.20% 3 HDFC Ergo 1.80% 4 Tata AIG 1.99% 5 Shriram GI 2.01% 6 Bajaj Allianz 2.02% 7 SBI General 2.50% 8 Reliance 2.71% 9 Chola MS 3.04%

10 ICICI Lombard 7.78%

SMALL PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS REPUDIATION RATIO%

1 Raheja QBE 0.00% 2 Bharti Axa 1.10% 3 Magma HDI 1.27% 4 Universal Sompo 2.29% 5 Future Generali 3.91% 6 Liberty Videocon 6.20%

12

*Please note that the above ranks have been derived on the basis of ratios calculated upto two decimal places. For the sake of simplicity, the data has been rounded off.. This data is based on the number of claims and not claim amount. Data on corresponding claim amount is not available.

Claims Outstanding Ratio % for the quarter ended September 30, 2016 – The number of claims that were outstanding at the end of the quarter out of the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.Claims Outstanding Ratio = Total number of claims outstanding at the end of the quarter ended September 30th, 2016Total Claims available for processing for the Quarter ended September 30th, 2016

Lower the Claims Outstanding Ratio,better is an insurance company in terms of the measured ratio

OVERALL INSURERS’ COMPARISON:CLAIMS OUTSTANDING RATIO

PUBLIC SECTOR GENERAL INSURERS RANK INSURER CLAIMS OUTSTANDING RATIO%

1 New India 27.81% 2 United 41.81% 3 National 51.91% 4 Oriental 53.21%

LARGE PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS OUTSTANDING RATIO%

1 ICICI Lombard 27.85% 2 Royal Sundaram 30.78% 3 HDFC Ergo 30.91% 4 Tata AIG 34.73% 5 IFFCO Tokio 37.30% 6 SBI General 43.75% 7 Bajaj Allianz 54.15% 8 Chola MS 55.17% 9 Reliance 57.31%


SMALL PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS OUTSTANDING RATIO%

1 Universal Sompo 20.11% 2 Liberty Videocon 21.00% 3 Future Generali 30.80% 4 Bharti Axa 36.74% 5 Magma HDI 48.01% 6 Raheja QBE 83.33%

13

Claims Settlement Efficiency Ratio % for the quarter ended September 30, 2016 - The efficiency of an insurance company to settle the claims, i.e., the number of claims settled in 3 months as compared to the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.

Higher the Claims Settlement Efficiency Ratio,better is an insurance company in terms of the measured ratio

FIRE: CLAIMS SETTLEMENT EFFICIENCY RATIO





1 ICICI Lombard 17.46% 2 Chola MS 14.97% 3 HDFC Ergo 14.67% 4 Reliance 14.45% 5 SBI General 13.04% 6 Universal Sompo 12.63% 7 Future Generali 11.49% 8 IFFCO Tokio 11.03% 9 Tata AIG 6.99%

10 Bajaj Allianz 3.73%


1 Royal Sundaram 48.19% 2 Shriram GI 47.06% 3 Magma HDI 6.90% 4 Liberty Videocon 0.00% 5 Bharti Axa 0.00%

14


Claims Pendency Ratio % for the quarter ended September 30, 2016 – The number of claims that were pending for more than 1 year out of the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.

Lower the Claims Pendency Ratio,better is an insurance company in terms of the measured ratio

FIRE: CLAIMS PENDENCY RATIO


1 United 19.10% 2 Oriental 20.10% 3 National 21.16% 4 New India 21.75%


1 IFFCO Tokio 2.14% 2 Universal Sompo 2.72% 3 HDFC Ergo 4.56% 4 Chola MS 5.72% 5 SBI General 11.46% 6 Future Generali 12.86% 7 Tata AIG 22.60% 8 Reliance 24.49% 9 ICICI Lombard 42.38%



1 Shriram GI 3.92% 2 Royal Sundaram 6.68% 3 Magma HDI 9.20% 4 Liberty Videocon 28.99% 5 Bharti AXA 43.21%

15

Claims Settlement Ratio % for the quarter ended September 30, 2016 – The number of claims settled during the quarter from the total claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


FIRE : CLAIMS SETTLEMENT RATIO





1 Universal Sompo 52.67% 2 HDFC Ergo 38.67% 3 SBI General 33.26% 4 Reliance 32.16% 5 IFFCO Tokio 28.38% 6 Tata AIG 27.88% 7 Chola MS 25.64% 8 Future Generali 24.61% 9 ICICI Lombard 21.89%



1 Shriram GI 59.48% 2 Royal Sundaram 56.77% 3 Magma HDI 24.14% 4 Liberty Videocon 17.39% 5 Bharti Axa 7.92%

16


Claims Repudiation Ratio % for the quarter ended September 30, 2016 – The number of claims that were repudiated during the quarter by the insurer out of the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


FIRE: CLAIMS REPUDIATION RATIO


1 United 0.92% 2 New India 3.58% 3 Oriental 4.75% 4 National 5.07%


1 IFFCO Tokio 0.00% 2 Reliance 0.97% 3 ICICI Lombard 2.43% 4 Bajaj Allianz 3.83% 5 Tata AIG 4.19% 6 HDFC Ergo 4.22% 7 Chola MS 6.39% 8 Future Generali 7.12% 9 SBI General 9.97%

10 Universal Sompo 13.41%


1 Bharti Axa 1.32% 2 Royal Sundaram 2.70% 3 Magma HDI 5.75% 4 Liberty Videocon 5.80% 5 Shriram GI 11.11%

17

Claims Outstanding Ratio % for the quarter ended September 30, 2016 – The number of claims that were outstanding at the end of the quarter out of the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


FIRE: CLAIMS OUTSTANDING RATIO

*Please note that the above ranks have been derived on the basis of ratios calculated upto two decimal places. For the sake of simplicity, the data has been rounded off. This data is based on the number of claims and not claim amount. Data on corresponding claim amount is not available. 18




1 Universal Sompo 33.92% 2 SBI General 56.78% 3 HDFC Ergo 57.11% 4 Reliance 66.87% 5 Tata AIG 67.93% 6 Chola MS 67.97% 7 Future Generali 69.04% 8 ICICI Lombard 75.69% 9 IFFCO Tokio 76.67%



1 Shriram GI 29.41% 2 Royal Sundaram 38.14% 3 Magma HDI 70.11% 4 Liberty Videocon 76.81% 5 Bharti Axa 90.75%



Higher the Claims Settlement Efficiency ratio,better is an insurance company in terms of the measured ratio

MARINE CARGO:CLAIMS SETTLEMENT EFFICIENCY RATIO




1 IFFCO Tokio 69.57% 2 Chola MS 67.74% 3 Universal Sompo 59.37% 4 HDFC Ergo 55.12% 5 ICICI Lombard 51.36% 6 Reliance 42.00% 7 SBI General 34.97% 8 Future Generali 34.60% 9 Bajaj Allianz 26.70%

10 Tata AIG 20.24%


1 Magma HDI 81.47% 2 Royal Sundaram 32.17% 3 Shriram GI 11.54% 4 Bharti Axa 10.70% 5 Liberty Videocon 9.50%

19


Lower the Claims Pendency Ratio,better is an insurance company in terms of the measured ratio

MARINE CARGO: CLAIMS PENDENCY RATIO





1 HDFC Ergo 0.67% 2 Chola MS 1.07% 3 IFFCO Tokio 1.60% 4 ICICI Lombard 2.98% 5 Tata AIG 3.26% 6 Reliance 4.52% 7 Future Generali 6.66% 8 Bharti Axa 10.94% 9 Bajaj Allianz 10.99%

10 Royal Sundaram 11.24%


1 Universal Sompo 0.00% 2 Shriram GI 0.00% 3 Magma HDI 1.09% 4 Liberty Videocon 2.71% 5 SBI General 4.60%

20


Claims Settlement Ratio % for the quarter ended September 30, 2016 – The number of claims settled in the quarter from the total claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


MARINE CARGO: CLAIMS SETTLEMENT RATIO




1 IFFCO Tokio 86.15% 2 HDFC Ergo 77.91% 3 Chola MS 71.18% 4 Reliance 65.08% 5 ICICI Lombard 63.70% 6 Bajaj Allianz 50.37% 7 Royal Sundaram 39.68% 8 Future Generali 38.07% 9 Bharti Axa 31.54%

10 Tata AIG 26.57%


1 Magma HDI 84.96% 2 Universal Sompo 83.76% 3 SBI General 54.45% 4 Shriram GI 30.77% 5 Liberty Videocon 28.05%

21



MARINE CARGO: CLAIMS REPUDIATION RATIO





1 IFFCO Tokio 0.00% 2 HDFC Ergo 0.08% 3 Bharti Axa 0.08% 4 Chola MS 0.89% 5 Reliance 1.15% 6 ICICI Lombard 2.29% 7 Bajaj Allianz 2.50% 8 Tata AIG 2.59% 9 Royal Sundaram 3.63%

10 Future Generali 13.31%


1 Magma HDI 0.54% 2 Universal Sompo 1.30% 3 SBI General 5.83% 4 Liberty Videocon 11.31% 5 Shriram GI 11.54%

22




MARINE CARGO: CLAIMS OUTSTANDING RATIO




1 IFFCO Tokio 19.61% 2 HDFC Ergo 22.01% 3 Chola MS 27.93% 4 Reliance 33.77% 5 ICICI Lombard 34.02% 6 Bajaj Allianz 43.03% 7 Future Generali 49.98% 8 Royal Sundaram 54.66% 9 Bharti Axa 68.38%

10 Tata AIG 70.84%


1 Magma HDI 14.50% 2 Universal Sompo 14.94% 3 SBI General 39.72% 4 Shriram GI 57.69% 5 Liberty Videocon 60.63%

23


Higher the Claims Settlement Efficiency Ratio,better is an insurance company in terms of the measured ratio

MARINE HULL: CLAIMS SETTLEMENT EFFICIENCY RATIO

*Please note that the above ranks have been derived on the basis of ratios calculated upto two decimal places. For the sake of simplicity, the data has been rounded off.. This data is based on the number of claims and not claim amount. Data on corresponding claim amount is not available. 24


1 United 20.17% 2 National 9.88% 3 New India 3.55% 4 Oriental 3.09%

PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS SETTLEMENT EFFICIENCY RATIO %

1 IFFCO Tokio 2.53% 2 ICICI Lombard 1.38% 3 HDFC Ergo 0.00% 4 Bajaj Allianz 0.00% 5 Reliance 0.00% Royal Sundaram and Chola MS had nil claims available for processing during the quarter.

Only the insurers mentioned above had business written in the Marine Hull line of business



Lower the Claims Pendency Ratio, better is an insurance company in terms of the measured ratio

MARINE HULL: CLAIMS PENDENCY RATIO


1 United 12.98% 2 Oriental 45.70% 3 National 48.22% 4 New India 50.59%

PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS PENDENCY RATIO%

1 IFFCO Tokio 6.33% 2 HDFC Ergo 14.29% 3 Reliance 42.86% 4 ICICI Lombard 76.55% 5 Bajaj Allianz 78.57%

Royal Sundaram and Chola MS had nil claims available for processing during the quarter.

Only the insurers mentioned above had business written in the Marine Hull line of business.

25

Claims Settlement Ratio % for the quarter ended September 30, 2016 - The number of claims settled during the quarter from the total claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.

Higher the Claims Settlement Ratio, better is an insurance company in terms of the measured ratio

MARINE HULL: CLAIMS SETTLEMENT RATIO




PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS SETTLEMENT RATIO%

1 Reliance 28.57% 2 HDFC Ergo 19.05% 3 IFFCO Tokio 15.19% 4 Bajaj Allianz 7.14% 5 ICICI Lombard 3.45%

Royal Sundaram and Chola MS had nil claims available for processing during the quarter.


26



Lower the Claims Repudiation Ratio, better is an insurance company in terms of the measured ratio

MARINE HULL: CLAIMS REPUDIATION RATIO

27


1 Oriental 0.69% 2 New India 2.07% 3 United 2.21% 4 National 6.72%

PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS REPUDIATION RATIO%

1 IFFCO Tokio 0.00% 2 HDFC Ergo 0.00% 3 Reliance 0.00% 4 ICICI Lombard 0.00% 5 Bajaj Allianz 7.14% Royal Sundaram and Chola MS had nil claims available for processing during the quarter.


Claims Outstanding Ratio % for the quarter ended September 30, 2016 - The number of claims that were outstanding at the end of the quarter out of the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.

Lower the Claims Outstanding Ratio, better is an insurance company in terms of the measured ratio

MARINE HULL: CLAIMS OUTSTANDING RATIO




PRIVATE SECTOR GENERAL INSURERS RANK INSURER CLAIMS OUTSTANDING RATIO%

1 Reliance 71.43% 2 HDFC Ergo 80.95% 3 IFFCO Tokio 89.87% 4 Bajaj Allianz 92.86% 5 ICICI Lombard 96.55% Royal Sundaram and Chola MS had nil claims available for processing during the quarter.


28


Claims Settlement Efficiency Ratio % for the quarter ended September 30, 2016 – The efficiency of an insurance company to settle the claims, i.e., the number of claims settled in 3 months as compared to the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


MOTOR OD: CLAIMS SETTLEMENT EFFICIENCY RATIO




1 Royal Sundaram 81.60% 2 Bajaj Allianz 78.52% 3 Tata AIG 78.49% 4 IFFCO Tokio 76.53% 5 HDFC Ergo 73.95% 6 ICICI Lombard 73.86% 7 Bharti Axa 70.77% 8 Reliance 60.76% 9 SBI General 58.65%



1 Universal Sompo 78.05% 2 Liberty Videocon 77.75% 3 Future Generali 73.40% 4 Chola MS 67.83% 5 Magma HDI 57.20%

29

Claims Pendency Ratio % for the quarter ended September 30, 2016 - The number of claims that were pending for more than 1 year out of the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


MOTOR OD: CLAIMS PENDENCY RATIO



1 New India 1.27% 2 National 3.00% 3 Oriental 4.18% 4 United 4.76%


1 ICICI Lombard 0.01% 2 IFFCO Tokio 0.22% 3 HDFC Ergo 0.52% 4 Tata AIG 0.86% 5 Chola MS 0.99% 6 Bharti Axa 1.17% 7 Bajaj Allianz 1.23% 8 Future Generali 1.28% 9 SBI General 1.66%

10 Reliance 3.29%


1 Royal Sundaram 0.13% 2 Liberty Videocon 0.25% 3 Bharti Axa 1.17% 4 Magma HDI 1.72% 5 Shriram GI 7.66%

30




MOTOR OD: CLAIMS SETTLEMENT RATIO




1 Tata AIG 86.13% 2 Royal Sundaram 85.79% 3 Bajaj Allianz 84.85% 4 IFFCO Tokio 84.16% 5 HDFC Ergo 81.65% 6 ICICI Lombard 80.56% 7 Bharti Axa 77.90% 8 Reliance 71.71% 9 Chola MS 70.96%



1 Universal Sompo 85.43% 2 Liberty Videocon 83.97% 3 Future Generali 75.44% 4 Magma HDI 73.28% 5 SBI General 67.06%

31

Claims Repudiation Ratio % for the quarter ended September 30, 2016 - The number of claims that were repudiated during the quarter by the insurer out of the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


MOTOR OD: CLAIMS REPUDIATION RATIO



1 United 0.03% 2 New India 0.37% 3 National 1.27% 4 Oriental 2.28%


1 IFFCO Tokio 0.11% 2 Tata AIG 0.38% 3 Royal Sundaram 0.52% 4 Bharti Axa 0.85% 5 ICICI Lombard 1.75% 6 HDFC Ergo 2.06% 7 Reliance 2.44% 8 Bajaj Allianz 2.58% 9 Shriram GI 3.28%

10 Chola MS 5.55%


1 SBI General 0.63% 2 Universal Sompo 1.21% 3 Magma HDI 2.25% 4 Liberty Videocon 3.90% 5 Future Generali 4.39%

32




1 Tata AIG 13.49% 2 Royal Sundaram 13.91% 3 HDFC Ergo 16.29% 4 ICICI Lombard 17.69% 5 IFFCO Tokio 19.50% 6 Bharti Axa 21.25% 7 Chola MS 23.49% 8 Reliance 25.85% 9 Shriram GI 31.80%



1 Liberty Videocon 12.12% 2 Universal Sompo 13.37% 3 Future Generali 20.47% 4 Magma HDI 24.47% 5 SBI General 32.31%




MOTOR OD: CLAIMS OUTSTANDING RATIO

33



MOTOR TP: CLAIMS SETTLEMENT EFFICIENCY RATIO





1 IFFCO Tokio 1.91% 2 HDFC Ergo 1.85% 3 SBI General 0.79% 4 Tata AIG 0.69% 5 ICICI Lombard 0.38% 6 Bharti Axa 0.28% 7 Shriram GI 0.22% 8 Reliance 0.18% 9 Bajaj Allianz 0.07%

10 Royal Sundaram 0.04%


1 Chola MS 3.34% 2 Future Generali 1.56% 3 Universal Sompo 1.02% 4 Magma HDI 0.95% 5 Liberty Videocon 0.35%

34




MOTOR TP: CLAIMS PENDENCY RATIO


1 Oriental 63.14% 2 United 64.59% 3 New India 65.83% 4 National 77.76%


1 Bharti Axa 0.78% 2 IFFCO Tokio 4.78% 3 Chola MS 53.34% 4 Tata AIG 53.96% 5 HDFC Ergo 57.42% 6 Future Generali 61.06% 7 ICICI Lombard 64.42% 8 Shriram GI 65.05% 9 Reliance 73.88%



1 Liberty Videocon 25.91% 2 SBI General 39.92% 3 Magma HDI 41.23% 4 Universal Sompo 59.96% 5 Royal Sundaram 63.70%

35

Claims Settlement Ratio % for the quarter ended September 30, 2016 - The number of claims settled in the quarter from the total claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


MOTOR TP: CLAIMS SETTLEMENT RATIO





1 IFFCO Tokio 13.59% 2 Chola MS 11.46% 3 Tata AIG 10.89% 4 ICICI Lombard 9.93% 5 Shriram GI 9.75% 6 HDFC Ergo 9.23% 7 Royal Sundaram 8.67% 8 Bharti Axa 7.44% 9 Bajaj Allianz 6.31%

10 Reliance 5.84%


1 SBI General 16.15% 2 Universal Sompo 15.78% 3 Magma HDI 10.84% 4 Future Generali 8.37% 5 Liberty Videocon 3.28%

36




MOTOR TP: CLAIMS REPUDIATION RATIO


1 United 0.03% 2 New India 0.07% 3 Oriental 0.32% 4 National 0.44%


1 IFFCO Tokio 0.00% 2 Tata AIG 0.00% 3 Bajaj Allianz 0.00% 4 Chola MS 0.00% 5 Bharti Axa 0.00% 6 Royal Sundaram 0.00% 7 ICICI Lombard 0.11% 8 HDFC Ergo 0.41% 9 Reliance 1.35%

10 Shriram GI 1.39%


1 Magma HDI 0.00% 2 Universal Sompo 0.00% 3 SBI General 0.00% 4 Liberty Videocon 0.00% 5 Future Generali 0.20%

37



MOTOR TP: CLAIMS OUTSTANDING RATIO





1 Chola MS 88.54% 2 IFFCO Tokio 88.58% 3 Shriram GI 88.86% 4 Tata AIG 89.11% 5 ICICI Lombard 89.96% 6 HDFC Ergo 90.35% 7 Royal Sundaram 91.33% 8 Bharti Axa 92.56% 9 Reliance 92.81%



1 Universal Sompo 84.22% 2 SBI General 83.85% 3 Magma HDI 89.16% 4 Future Generali 92.72% 5 Liberty Videocon 96.72%

38

Claims Settlement Efficiency Ratio % for the quarter ended September 30, 2016 – The efficiency of an insurance company to settle the claims, i.e., the number of claims settled in 3 months as compared to the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


HEALTH: CLAIMS SETTLEMENT EFFICIENCY RATIO


1 New India 82.62% 2 Oriental 60.65% 3 United 59.06% 4 National 29.60%


1 Future Generali 90.14% 2 Royal Sundaram 85.66% 3 Bajaj Allianz 77.12% 4 Universal Sompo 63.91% 5 ICICI Lombard 60.84% 6 HDFC Ergo 57.15% 7 Tata AIG 46.89% 8 Reliance 41.41% 9 IFFCO Tokio 37.46%

10 SBI General 34.29%


1 Liberty Videocon 66.04% 2 Bharti Axa 56.57% 3 Chola MS 22.25%

Magma HDI and Shriram General reported Nil claims available for processing in Health during the period.

39


STANDALONE HEALTH INSURERS RANK INSURER CLAIMS SETTLEMENT EFFICIENCY RATIO %

1 Cigna TTK 81.65% 2 Apollo Munich 75.72% 3 Max Bupa 72.45% 4 Religare Health 58.74% 5 Star Health 57.01%

40

Claims Pendency Ratio % for the quarter ended September 30, 2016 - The number of claims that were pending for more than 1 year out of the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


HEALTH: CLAIMS PENDENCY RATIO




1 Universal Sompo 0.00% 2 SBI General 0.00% 3 HDFC Ergo 0.02% 4 Future Generali 0.18% 5 ICICI Lombard 0.22% 6 Bajaj Allianz 0.22% 7 IFFCO Tokio 0.23% 8 Reliance 0.31% 9 Royal Sundaram 0.98%

10 Tata AIG 1.13%




41


42

STANDALONE HEALTH INSURERS RANK INSURER CLAIMS PENDENCY RATIO%

Cigna TTK 0.00% 1 Apollo Munich 0.00%

Religare Health 0.00% 2 Star Health 0.01% 3 Max Bupa 0.02%

*Apollo Munich, Religare Health and Cigna TTK have nil claims outstanding for more than one year.




1 Future Generali 96.95% 2 Royal Sundaram 90.41% 3 Universal Sompo 84.96% 4 Bajaj Allianz 83.85% 5 HDFC Ergo 71.33% 6 Tata AIG 63.71% 7 SBI General 63.65% 8 ICICI Lombard 63.31% 9 IFFCO Tokio 54.86%

10 Reliance 43.56%



Magma HDI and Shriram General reported Nil claims available for processing in Health during the period



HEALTH: CLAIMS SETTLEMENT RATIO

43

STANDALONE HEALTH INSURERS RANK INSURER CLAIMS SETTLEMENT RATIO%

1 Religare Health 85.15% 2 Cigna TTK 81.68% 3 Apollo Munich 78.43% 4 Max Bupa 72.74% 5 Star Health 60.94%

44


Claims Repudiation Ratio % for the quarter ended September 30, 2016 - The number of claims that were repudiated during the quarter by the insurer out of the total number of claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


HEALTH: CLAIMS REPUDIATION RATIO




1 IFFCO Tokio 0.00% 2 Future Generali 1.74% 3 Bajaj Allianz 2.62% 4 Universal Sompo 3.14% 5 Reliance 3.92% 6 SBI General 4.77% 7 HDFC Ergo 5.11% 8 Royal Sundaram 5.64% 9 ICICI Lombard 13.85%

10 Tata AIG 15.35%


1 Chola MS 3.86% 2 Bharti Axa 6.16% 3 Liberty Videocon 10.27%


45


46

STANDALONE HEALTH INSURERS RANK INSURER CLAIMS REPUDIATION RATIO%

1 Apollo Munich 5.12% 2 Religare Health 6.25% 3 Star Health 7.59% 4 Max Bupa 7.93% 5 Cigna TTK 10.06%



HEALTH: CLAIMS OUTSTANDING RATIO




1 Universal Sompo 11.90% 2 Future Generali 14.81% 3 Bajaj Allianz 17.56% 4 Tata AIG 20.94% 5 ICICI Lombard 22.85% 6 HDFC Ergo 23.55% 7 Royal Sundaram 25.05% 8 SBI General 31.58% 9 IFFCO Tokio 45.78%

10 Reliance 52.52%




47


48

STANDALONE HEALTH INSURERS RANK INSURER CLAIMS OUTSTANDING RATIO%

1 Cigna TTK 8.05% 2 Religare Health 8.60% 3 Apollo Munich 16.46% 4 Max Bupa 19.32% 5 Star Health 31.48%



MISCELLANEOUS: CLAIMS SETTLEMENT EFFICIENCY RATIO





1 HDFC Ergo 67.26% 2 Tata AIG 43.62% 3 Universal Sompo 42.52% 4 Chola MS 41.14% 5 IFFCO Tokio 32.91% 6 Future Generali 23.94% 7 ICICI Lombard 22.81% 8 Reliance 11.33% 9 Bajaj Allianz 8.24%



1 Royal Sundaram 38.28% 2 Magma HDI 37.16% 3 Shriram GI 13.24% 4 Liberty Videocon 12.63% 5 Raheja QBE 7.14% 6 Bharti Axa 2.39%

49




MISCELLANEOUS: CLAIMS PENDENCY RATIO


1 United 9.86% 2 New India 12.00% 3 National 16.13% 4 Oriental 21.62%


1 IFFCO Tokio 1.82% 2 HDFC Ergo 2.12% 3 Universal Sompo 2.82% 4 Tata AIG 3.69% 5 ICICI Lombard 8.19% 6 Bajaj Allianz 8.67% 7 Chola MS 11.61% 8 SBI General 15.04% 9 Future Generali 20.68%

10 Reliance 34.29%


1 Magma HDI 3.77% 2 Liberty Videocon 6.77% 3 Shriram GI 11.03% 4 Bharti Axa 11.95% 5 Royal Sundaram 13.62% 6 Raheja QBE 23.57%

50

Claims Settlement Ratio % for the quarter ended September 30, 2016 - The number of claims settled in the quarter from the total claims available for processing, i. e., total number of claims outstanding at the beginning of the quarter + total number of claims reported/booked during the quarter.


MISCELLANEOUS: CLAIMS SETTLEMENT RATIO





1 HDFC Ergo 84.01% 2 Tata AIG 66.51% 3 Universal Sompo 65.42% 4 IFFCO Tokio 53.01% 5 Chola MS 51.90% 6 ICICI Lombard 35.75% 7 Future Generali 26.00% 8 Reliance 24.81% 9 Bajaj Allianz 21.07%



1 Royal Sundaram 48.87% 2 Magma HDI 46.50% 3 Shriram GI 37.13% 4 Bharti Axa 32.55% 5 Liberty Videocon 31.13% 6 Raheja QBE 19.29%

51




MISCELLANEOUS: CLAIMS REPUDIATION RATIO




1 IFFCO Tokio 0.06% 2 HDFC Ergo 0.20% 3 Chola MS 1.17% 4 Bajaj Allianz 1.58% 5 Reliance 2.44% 6 Tata AIG 3.27% 7 ICICI Lombard 4.52% 8 Future Generali 7.80% 9 Universal Sompo 8.57%



1 Raheja QBE 0.00% 2 Bharti Axa 0.46% 3 Magma HDI 1.26% 4 Royal Sundaram 2.87% 5 Shriram GI 8.82% 6 Liberty Videocon 14.46%

52


Lower the Claims Outstanding Ratio, better is an insurance company in terms of the measured rati

MISCELLANEOUS: CLAIMS OUTSTANDING RATIO





1 HDFC Ergo 15.80% 2 Universal Sompo 26.01% 3 Tata AIG 30.22% 4 Chola MS 46.93% 5 IFFCO Tokio 52.70% 6 ICICI Lombard 59.72% 7 Future Generali 64.80% 8 SBI General 70.02% 9 Reliance 72.74%



1 Royal Sundaram 51.08% 2 Magma HDI 52.24% 3 Shriram GI 54.04% 4 Liberty Videocon 54.41% 5 Bharti Axa 66.99% 6 Raheja QBE 82.86%

53

WHY AVAIL OF AN INSURANCE BROKER?Insurance brokers are the only insurance distribution channel which represents the policyholders. As is the case with other countries, the concept of an Insurance Broker was introduced by the Insurance Regulatory & Development Authority of India (IRDAI) through the IRDA (Insurance Brokers) Regulations, 2002 and amended in 2013. These regulations define the functions and the code of conduct of an Insurance Broker.

• Some insurance policies can be complicated, and an insurance broker can help a policyholder understand the details of a policy and also work out what the level of cover needed to ensure that the policyholder’s interest is well-protected.

• Brokers can find a good deal for the policyholder on insurance and can negotiate premiums on his/her behalf.

• A broker will explain the insurance policy and advise the policyholder on any special situations that they need to know about.

• Brokers can prepare a customized insurance and risk management program for a policyholder and his/her business, where they design the policies, negotiate the terms with insurance companies and place the cover with the insurer.

• By including a risk management program, the policyholder can share the responsibility of loss prevention and loss minimization and thereby reduce premium costs.

• Using the broker doesn’t cost more than going direct as they are paid the brokerage by the Insurers for selling their products

• In case of a claim on the policy, an insurance broker will assist the policyholder through the process and will liaise with the insurer on their behalf.

54

II. Limitations:

a. L&T General Insurance – The company now has been acquired and is no longer accepting new proposals.

b. Kotak General Insurance and Aditya Birla Health Insurance: The Insurers were not incorporated in the period for which claims data is taken.

c. For Raheja QBE, only the Miscellaneous line of business has been considered since the premium written by Raheja QBE, in other lines of business is not comparable to that of other insurers.

d. Standalone / Specialized Insurers – Following specialised insurers are not considered for evaluation:-

i. Agriculture Insurance Corporation of India ii. Export Credit Guarantee Corporation of India

e. Disclaimer shared by Raheja QBE:

Approximately 90% of Raheja QBE's book constitutes of the Long-tail class. It is generally the other way round for the rest of the Indian non-life market. RQBE is an outlier. Raheja QBE's book of business is predominantly the liability segment or long tail class.

i. The long tail claims develop slowly and the matrix used to measure short tail (motor, health and property which constitute over 80% of the Indian market portfolio) claims pendency do not always apply to long tail class.

ii. The liability for claims that do not proceed to final settlement until a length of time beyond the policy year. High incurred but not reported (IBNR) claims contribute to this "tail" effect, since these losses are usually not settled until several years after the expiration of the policy in question.

SOURCES AND LIMITATIONS OF CONSIDERED DATA

I. Sources of Data:

a. Claims related data is taken from respective public disclosures of Insurance companies from their respective websites for the quarter ended September 30, 2016. These disclosures include the following:

i. NL 24 (Ageing of Claims): It includes data on how claims have been paid over various time periods. Here, the data for Claims Paid in 0-1 month has been clubbed with the data for 1-3 months to arrive at 0 – 3 months data.

ii. NL 25 (Claims Data): It includes data on ageing of outstanding claims over various time periods.

b. For the above mentioned disclosures, the Miscellaneous line of business have been clubbed together as –

Miscellaneous: Engineering, Aviation, Liability, Credit Insurance, Personal Accident, Travel, Crop & Other Miscellaneous Insurance.

c. Solvency Ratio data is sourced from NL 33 published on insurer’s website as on September 30, 2016.

d. The gross premium written by the insurers in each line of business has been calculated from the data disclosed by the insurance company on their website in the NL 26 disclosure for the quarter ended September 30th, 2016.

e. The data considered only refers to the number of claims and not claim amount. Corresponding data on claim amount is not available in the public domain for the Indian insurance market.

f. For the following general insurance companies, the total claims available for processing (i. e., sum of total claims reported during the quarter and total claims outstanding at the beginning of the quarter) is not equal to the sum of total claims paid, total claims closed (if applicable), total claims repudiated and total claims outstanding at the end of the quarter –

i. Oriental Insurance Co. Ltd. ii. IFFCO Tokio General Insurance Co. Ltd. iii. Future Generali India Insurance Co. Ltd. iv. Bajaj Allianz General Insurance Co. Ltd. v. Royal Sundaram General Insurance Co. Ltd. vi. Raheja QBE General Insurance Co. Ltd. vii. Cigna TTK Health Insurance Co. Ltd.

55

II. Limitations:

a. L&T General Insurance – The company now has been acquired and is no longer accepting new proposals.

b. Kotak General Insurance and Aditya Birla Health Insurance: The Insurers were not incorporated in the period for which claims data is taken.

c. For Raheja QBE, only the Miscellaneous line of business has been considered since the premium written by Raheja QBE, in other lines of business is not comparable to that of other insurers.

d. Standalone / Specialized Insurers – Following specialised insurers are not considered for evaluation:-

i. Agriculture Insurance Corporation of India ii. Export Credit Guarantee Corporation of India

e. Disclaimer shared by Raheja QBE:

Approximately 90% of Raheja QBE's book constitutes of the Long-tail class. It is generally the other way round for the rest of the Indian non-life market. RQBE is an outlier. Raheja QBE's book of business is predominantly the liability segment or long tail class.

i. The long tail claims develop slowly and the matrix used to measure short tail (motor, health and property which constitute over 80% of the Indian market portfolio) claims pendency do not always apply to long tail class.

ii. The liability for claims that do not proceed to final settlement until a length of time beyond the policy year. High incurred but not reported (IBNR) claims contribute to this "tail" effect, since these losses are usually not settled until several years after the expiration of the policy in question.

56

SOURCES AND LIMITATIONS OF CONSIDERED DATA

I. Sources of Data:

a. Claims related data is taken from respective public disclosures of Insurance companies from their respective websites for the quarter ended September 30, 2016. These disclosures include the following:

i. NL 24 (Ageing of Claims): It includes data on how claims have been paid over various time periods. Here, the data for Claims Paid in 0-1 month has been clubbed with the data for 1-3 months to arrive at 0 – 3 months data.

ii. NL 25 (Claims Data): It includes data on ageing of outstanding claims over various time periods.

b. For the above mentioned disclosures, the Miscellaneous line of business have been clubbed together as –

Miscellaneous: Engineering, Aviation, Liability, Credit Insurance, Personal Accident, Travel, Crop & Other Miscellaneous Insurance.

c. Solvency Ratio data is sourced from NL 33 published on insurer’s website as on September 30, 2016.

d. The gross premium written by the insurers in each line of business has been calculated from the data disclosed by the insurance company on their website in the NL 26 disclosure for the quarter ended September 30th, 2016.

e. The data considered only refers to the number of claims and not claim amount. Corresponding data on claim amount is not available in the public domain for the Indian insurance market.

f. For the following general insurance companies, the total claims available for processing (i. e., sum of total claims reported during the quarter and total claims outstanding at the beginning of the quarter) is not equal to the sum of total claims paid, total claims closed (if applicable), total claims repudiated and total claims outstanding at the end of the quarter –

i. Oriental Insurance Co. Ltd. ii. IFFCO Tokio General Insurance Co. Ltd. iii. Future Generali India Insurance Co. Ltd. iv. Bajaj Allianz General Insurance Co. Ltd. v. Royal Sundaram General Insurance Co. Ltd. vi. Raheja QBE General Insurance Co. Ltd. vii. Cigna TTK Health Insurance Co. Ltd.

GLOSSARY

The companies analyzed in this handbook are mentioned by the short nomenclature that they are popularly known by. The full names of the companies are given below as a glossary:

57

PUBLIC SECTOR GENERAL INSURERS 1 United India United India Insurance Co. Ltd. 2 Oriental The Oriental Insurance Co. Ltd. 3 National National Insurance Co. Ltd. 4 New India The New India Assurance Co. Ltd.

PRIVATE SECTOR GENERAL INSURERS

1 Universal Sompo Universal Sompo General Insurance Co. Ltd. 2 Tata AIG TATA AIG General Insurance Co. Ltd. 3 ICICI Lombard ICICI Lombard General Insurance Co. Ltd. 4 Future Generali Future Generali India Insurance Co. Ltd. 5 HDFC Ergo HDFC Ergo General Insurance Co. Ltd. 6 Bajaj Allianz Bajaj Allianz General Insurance Co. Ltd. 7 SBI General SBI General Insurance Co. Ltd. 8 Cholamandalam MS Cholamandalam MS General Insurance Co.

Ltd. 9 IFFCO Tokio IFFCO Tokio General Insurance Co. Ltd. 10 Reliance General Reliance General Insurance Co. Ltd. 11 Magma HDI Magma HDI General Insurance Co. Ltd. 12 Liberty Videocon Liberty Videocon General Insurance Co. Ltd. 13 Bharti AXA Bharti AXA General Insurance Co. Ltd. 14 Shriram General Shriram General Insurance Co. td. 15 Royal Sundaram Royal Sundaram General Insurance Co. Ltd. 16 Raheja QBE Raheja QBE General Insurance Co. Ltd.

STANDALONE HEALTH INSURERS

1 Apollo Munich Apollo Munich Health Insurance Co. Ltd. 2 Cigna TTK CignaTTK Health Insurance Co.Ltd. 3 Max Bupa Max Bupa Health Insurance Co. Ltd. 4 Religare Health Religare Health Insurance Co. Ltd. 5 Star Heatlh Health and Allied Insurance Co. Ltd.

DISCLAIMER

This handbook is intended to provide general information only and is not exhaustive. It is a policyholder awareness and education initiative and does not seek to give you any legal advice.

No information given herein replaces or overrides the terms and conditions of an insurance policy.

Please approach a duly licensed insurance broker or an insurance company registered with IRDAI for specific information regarding a policy or for any other additional information.

58

INSURANCE BROKERS ASSOCIATION OF INDIAMaker Bhavan No.1, 7th Floor, Sir V. T. Marg, Mumbai 400 020.

Tel. No.: 022 - 22846544 | Email: [email protected] | Web: http://ibai.org

Documents

GENERAL INSURANCE CLAIM INSIGHTS FOR POLICYHOLDERS …ibai.org/wp-content/uploads/2017/09/IBAI-Handbook-Vol-2_Single... · GENERAL INSURANCE CLAIM INSIGHTS FOR POLICYHOLDERS A HANDBOOK