Claim Settlement Ratio
The share of claims an insurer settled out of all claims it received in a financial year.
Published in IRDAI annual data, CSR is a volume measure and not a promise about your specific claim. Read it alongside claim-paid ratio, complaint volumes and average settlement time.
Why Claim Settlement Ratio matters when comparing products
The Claim Settlement Ratio (CSR) indicates an insurer's general propensity to settle claims, which can be a factor when comparing insurance providers in India. While not a guarantee for an individual claim, a consistently higher CSR might suggest a more streamlined claims process or a stronger commitment to policyholder payouts. It offers a broad overview of past performance for consideration alongside other metrics like complaint data and settlement times.
Illustrative example
If an insurer receives 10,000 claims in a financial year and settles 9,500 of them, its Claim Settlement Ratio would be 95%. This means for every 100 claims filed, approximately 95 were settled. Conversely, if another insurer settled 9,000 out of 10,000 claims, its CSR would be 90% for that period.