Be it life, term, or health insurance, every person buys a policy to avoid a financial crisis in times of trouble. But when the time of claim comes, one has to face problems. Insurance companies do not approve the claim easily and sometimes reject it. However, while selling the policy, insurance companies make big claims of claim settlement, but the reality of these claims is different at the time of the claim.
If you have also faced such problems at the time of claim, then from now on, while buying a policy, definitely pay attention to an important clause, and that is CPR (Claims Paid Ratio); it is not just a figure but an important parameter while buying a policy.
What is Claim Paid Ratio (CPR)
Claim Paid Ratio (CPR) shows how well an insurance company fulfills its promise of helping families in times of need, so whether it is a health or life insurance policy, while buying it, the CPR of the company tells whether the insurance company has lived up to its promise at the time of claim or not.
It is not easy for any company to achieve a high CPR. Because it is the result of a well-planned, customer-centric claim system. CPR reflects the strong management and consumer-friendly behavior of the company. We get to know about 3 important points from CPR..
Fast claim settlement: Top insurance companies adopt better technology and well-organized processes to pay the claim as soon as possible, which ensures that the customer gets the sum insured on time at the time of claim.
Easy paperwork: The biggest problem at the time of claim is regarding the documents. In such a situation, insurance companies with higher CPR use digital systems to simplify the documentation process, making the claim process easier and more responsive.
A low rejection rate shows the transparency of the company's claim process that the insurance company is committed to paying valid claims.
What should be the CPR
In the latest annual report (2023-24) of the Insurance Regulatory and Development Authority of India (IRDAI), the average CPR of 96.82 percent for Indian life insurance companies is considered encouraging. Claim Payment Ratio (CPR) is an important figure that reflects the reliability of the insurance company.
Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
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