Mumbai, November 17: Incurred claim ration is the net claim paid by an insurance company as against to the net premium. In other words, incurred claim ratio is the overall value of every claim a company has paid, divided by the total actual premium collected during the same period.
The information about the incurred claim ratio is generally provided on all websites dealing with sale of the health insurance products. And we strongly suggest that one must look at the ratio before deciding about a product.
Knowledge of incurred claim ratio of insurance players makes it easier for the health insurance buyers to choose a suitable plan. We buy health insurance to be ready for medical emergencies. Hence, it is suggested that a health insurance provider with higher incurred claim ratio is preferred.
Higher incurred claim ratio means higher the chances of paying your health insurance claim at the time of medical emergencies. The ratio, in question here, signifies the overall health condition of the insurer. For instance, an insurer which has 98 per cent incurred claim ratio has higher chance of paying your health insurance claim than an insurer which has 90 per cent. Therefore, 98 per cent incurred claim ratio signifies that the insurer spent on claim settlement the same percentage of the actual premium earned during a particular period and the insurer is only earning a profit of 2 per cent.
Also, to improve the service, insurers simplify claim settlement process. However, most of the health insurance policyholders go through lengthy process at the time of claims. To make health insurance experience more fruitful, It is also important to look out for online or easy claim settlement process to avoid any delay.
Just as swiftness of claim settlement, there are many other factors that we consider during buying a health insurance plan like premium amount payable, illness covered, waiting period among others. However, now we know that it is equally important to consider the incurred claim ratio to really live a stress-free life after buying a health insurance product.