Tata AIA Life Insurance Claim Settlement Ratio

Life insurance products have witnessed a significant growth in demand over the last few years. Much of this growth results from the increasing interest of millennials and Gen Z towards building a solid financial backup and the latest pandemic that gave a quick glimpse at the fragile nature of life, encouraging the purchase of life insurance products.

While the increased demand for these financial products has given way to new players across the life insurance industry, some traditional providers like TATA AIA still have a strong foothold in the market, considering their solid client base and comprehensive and affordable policies. Founded in 2001 as a joint venture between TATA Sons and AIA (one of the largest insurers in Asia-Pacific), this insurer is a popular provider that extends diverse financial products across the genres of retirement plans, term insurance policies, life insurance plans, ULIPs, Endowment policies, saving plans, and more.

However, the question is - although TATA AIA Life Insurance is a popular provider, is it a credible insurer and how do you determine its credibility?

Well, the 1st step to determining its credibility is taking a look at the Tata AIA Claim Settlement Ratio (CSR), acknowledging its importance, tallying the numbers against the industry average and then drawing an insight from these numbers about its credibility. So, let’s start!

What is the Claim Settlement Ratio?

The Claim Settlement Ratio or CSR of a life insurance company is given by -

(Total number of claims settled by an insurer in a year/ Total number of claims received by the insurer for the year) * 100

So, say an insurer receives 100 claims across a year and settles 97 of them; its CSR will be -

(97/100) * 100 = 97%

Ideally, we recommend approaching a life insurer with a CSR of 97 and above. However, the numbers should not be higher than 100 since that indicates delayed settlements, which means you are looking at an insurer who takes longer to settle claims than preferred.

What is the Tata AIA Claim Settlement Ratio for 2024?

(However, this is just the first quarter of 2024, and to calculate the CSR of 2024, we need to take into account the data from the financial year 2022- 2023. However, instead of considering the CSR of 1 year, we have recorded the Tata AIA Claim Settlement Ratio data of the last 3 years, from 2020 to 2023, drawn out an average, and tallied them against the industry average. Such a detailed comparison also gives you an insight into the consistency of the insurer’s claim settlement performance.)

Overview of Tata AIA Life Insurance

What is the significance of Tata AIA Claim Settlement Ratio 2024?

As per the Tata AIA Claim Settlement Ratio data collected over the years 2020 to 2023, we can draw a couple of insights about the insurer -

1. Consistency: Over the last 3 years, the TATA AIA Life Insurance company has maintained a Claim Settlement Ratio of 98+. This is above our recommended minimum threshold of 97+. Additionally, the numbers across Tata AIA Claim Settlement Ratio have been improving over the years. This speaks volumes about the insurer's consistency.
2. Overall Performance: The Tata AIA Claim Settlement Ratio year-on-year and average beats the industry average each year and on an average for the last 3 years. This is a good sign for potential and existential policyholders of this brand as it reflects the insurer's incredible overall claim settlement performance.

Why is the Claim Settlement Ratio important?

Claim Settlement Ratio, or CSR, is the first metric to measure an insurer's credibility. In the case of life insurance companies, since the involved corpus/sum assured/cover amount is often an income replacement/life savings/retirement fund, the amount is significantly large. Hence, you need an insurer with a reputation for settling claims with slim to no chances of rejection. The CSR (97 and above) often helps to determine this.

(PLEASE NOTE: CSR fails to record the time taken to settle such claims and does not reflect the claim settlement potential of an insurer. Hence, the Claim Settlement ratio of an insurer is just the FIRST step to determine its credibility and NOT THE ONLY ONE. After considering the CSR of a life insurance provider, you should look at its Amount Settlement Ratio (ASR) and its complaint volume, tally the numbers against the industry average and consider the recommended bandwidth for these metrics, too.)

What is the Claim Settlement Process for TATA AIA Life Insurance?

STEP 1: Visit their official website's “Claims Intimation” Section of TATA AIA and register by providing details like

• your policy number,
• date of birth,
• contact details (phone number and email ID),
• cause of death,
• date and place of death, and
• the claimant’s name.

STEP 2: Register your claims by uploading the required documents (listed below).

STEP 3: Check your claim status on their official link.

STEP 4: Receive the claim amount within 30 (as per IRDAI) to 90 days (in case of further investigation) of receiving all the documents.

Or either of these options:

1. Call them at 1-860-266-9966 (for Indian), or 022-6251 9966 (for NRIs) and seek their guidance over call.
2. Type the claim and send it to +91-7045669966 (WhatsApp number)
3. Mail the claim post to claims@tataaia.com

What are the documents required to settle claims for TATA AIA Life Insurance?

When planning to file a claim to TATA AIA Life Insurance, make sure you have the soft/hard (online/offline process) copies of the following documents handy -

• The claimant's statement
• Original policy document
• Death certificate
• Police FIR
• Post-mortem exam report in case of an accidental death
• Certificate and records from the Hospital
• Advance discharge form

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

Conclusion

The Tata AIA Claim Settlement Ratio 2024 can’t be the sole metric in determining the insurer's credibility. However, considering the insurer’s excellent Amount Settlement Ratio (average: 92.7), low complaint volume (average: 2.3), and CSR data, TATA AIA is undoubtedly on the right track. Additionally, this credible insurer has some of the market's best and most affordable term insurance policies (Sampoorna Raksha Supreme, Maha Raksha Supreme, and Sampoorna Raksha Supreme Vitality). So, if you are considering TATA AIA as your term insurance provider, go for it - it’s a great pick!