HDFC Life Amount Settlement Ratio (ASR) Overview

Over the years, the demand for life insurance has surged, reflecting greater financial awareness. While it's great that more insurers now offer customisable policies to meet individual needs, your main goal should be to choose the right insurer. For life and term insurance, it's crucial to find one that ensures maximum claim settlements with minimal rejections. This is where the Amount Settlement Ratio (ASR) comes in.

HDFC Life, one of India’s leading life insurers, has been offering comprehensive insurance solutions since 2000. Let’s explore its ASR to assess its credibility.

What is the Amount Settlement Ratio?

An Amount Settlement Ratio or ASR is instrumental in analysing the financial sustainability of the term insurance provider. This is crucial, considering that term insurance policies are supposed to be a long-term financial commitment between the insurer and the insured. So, as a policyholder, you would want an insurer that has the financial potential to pay off your death benefit claims in the long run.

The ASR measures how well insurance companies settle claims, showing the percentage of the total claim amount that the insurer pays out. The ASR is calculated as:

(The total amount used in settling claims by an insurer over a year / The total amount collected via premiums by the insurer over the year) × 100

A life insurance provider with an ASR of 90 and above is golden.

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What is the HDFC Life Insurance Amount Settlement Ratio for 2024?

(This data represents the average of the past three years' figures, allowing us to compare it with the industry average. By averaging these numbers, we get a clearer picture of the company's consistency and overall operational efficiency.)

Overview of HDFC Life Insurance

What is the significance of HDFC Amount Settlement Ratio 2024?

Considering the data of HDFC Amount Settlement Ratio from 2021 to 2024, we have a couple of insights that will prove helpful if you want to consider HDFC as your life insurance provider.

1. Consistency: HDFC’s Amount Settlement Ratio has fluctuated a bit over the years. Especially during the anomalies of 2020 and 2021, the metrics went down slightly. However, it came back strong in 2023 with a 97% ASR.
2. Overall Performance: On an average and on a year-on-year basis, HDFC's Amount Settlement Ratio has been beating the industry average by a solid margin. This reflects its already-established credibility in the industry.

Why is the Amount Settlement Ratio important?

Let’s explore why a high Amount Settlement Ratio (ASR) matters for both customers and companies.

For customers:

• Reassurance: It shows the company is responsive and committed to timely, fair claim settlements.
• Peace of Mind: Customers feel secure knowing they’ll be compensated when needed.
• Trust: A high ASR reduces the stress of filing claims, as policyholders trust the process.

For companies:

• Customer Loyalty: Efficient claim handling boosts satisfaction and loyalty.
• Reputation: It strengthens the company's image as reliable.
• Legal Safeguard: Fair settlements reduce legal risks and regulatory issues.

What is the Claim Settlement Process for HDFC Life Insurance?

STEP 1: Visit their official site and click on “Claim Assistance”

STEP 2: Fill in their claim form by providing details like:

• Policy number
• Your name
• Email ID
• Pincode
• Phone Number

STEP 3: Upload your required documents as mentioned below.

STEP 4: Click on their “Branch Locator” tab and seek the nearest branch to submit the downloaded claim form and the documents.

STEP 5: Keep track of your claim status via their official link.

You can also receive guidance on your claim settlement by calling their helpline number - 1800-266-9777, or drop them an email at service@hdfclife.com for assistance.

What documents are required to settle a Claim with HDFC Life Insurance?

HDFC follows a streamlined process for claim settlements. Here’s a quick look at the documents required and the step-by-step process to file a claim:

1. For Death Claims

• Original policy documents
• Attested copy of death certificate issued by local municipal authority
• Death claim intimation form (the downloaded form)
• NEFT mandate form attested by bank authorities or copy of cancelled cheque or bank account passbook
• Nominee's photo identity & address proof such as a copy of Passport, Voter identity card, Aadhar (UID) card, etc.
• Additional documents based on the cause of death (fill out this form, too)

- In case of Medical/Natural death

• Copy of Medical Records (Admission Notes, Discharge/ Death Summary, Test Reports etc.)
• Attending Physician’s statement
• Employer certificate (where applicable)

- In case of Accidental/Unnatural death

• First Information Report (FIR) or Panchnama/Police complaint
• Post Mortem Report
• Final Police Investigation Report (if any)

2. For Critical Illness Claim

a. Mandatory documents

• Attested copies of medical records/ indoor papers of the hospital
• Critical illness Claim form
• Hospital discharge summary
• Hospital bills
• NEFT mandate form attested by bank authorities or copy of cancelled cheque or bank account passbook
• Claimant's photo identity & address proof such as copy of Passport, Voter identity card, Aadhar (UID) card, etc.

b. Additional documents

• Attending Physician’s statement

3. For Disability/Hospitalisation Claims

• Attested copies of medical records/ indoor papers of the hospital
• Disability Benefit Claim form
• Hospital discharge summary
• Hospital bills
• First Information Report (FIR), in case of disability claims
• NEFT mandate form attested by bank authorities or copy of cancelled cheque or bank account passbook
• Claimant's photo identity & address proof such as a copy of Passport, Voter identity card, Aadhar (UID) card, etc.
• Additional documents - Attending Physician’s statement

Please note: Based on the underwriter’s decision, you may be required to submit some additional documents.

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Conclusion

HDFC's Term Insurance Amount Settlement Ratio exceeds our recommended benchmarks, as do its Claim Settlement Ratio and complaint volume. While slightly below the industry average for a few years, HDFC Life’s Amount Settlement Ratio continues to reflect a steady commitment to handling claims effectively. Their high claim settlement ratio and low complaint volume further strengthen their reputation as a reliable life insurance provider.

If you're loyal to the brand, we recommend the HDFC Life Click 2 Protect Life for comprehensive coverage.