HDFC Life Click2Protect Life vs Bajaj Allianz Life eTouch

Claim settlement ratio is perhaps the most important metric you should be looking at considering it tells you how many claims an insurance company pays out for every 100 claims they receive. When you average the claim settlement numbers for 3 years and express it as a percentage, you will see that HDFC Life has a claim settlement ratio of 99.2% and Bajaj Allianz Life has a claim settlement ratio of 99.11%. And even though there’s a slight difference, these are both very good numbers. So there’s nothing to complain here.

Sometimes you can’t just look at the claim settlement ratio because it can be misleading. For instance, imagine 9 people make claims worth 1 crore each and the 10th person makes a claim totalling 5 crores. The company can simply pay out the smaller claims of 1 crore each and deny the bigger 5 crore claim and still maintain a claim settlement ratio of 90%. So you will need to look at the total amount settled as a percentage of the total value claimed. And when you average this number for 3 years and express it as a percentage, you will see that Bajaj Allianz Life has an amount settlement ratio of 93%, which we believe is a fairly good number and HDFC Life has an amount settlement ratio of 87.3% which is slightly above average. Bajaj Allianz Life slightly edges HDFC Life here.

While it’s important to look at the claim and amount settlement ratios, it’s also important to look at the scale of business. Because truth be told, it’s very easy to post 90%+ settlement numbers when you are selling only a few thousand policies and garnering a few hundred crores in premiums as opposed to putting up the same performance while selling hundreds of thousands of policies doing tens of thousands of crores in new business. So it’s important to look at the scale of the business. And when you consider total premiums generated across the last three years and average it across, you will see that HDFC Life has generated new business premiums worth ₹27,490 Crore and Bajaj Allianz Life has garnered new business worth ₹10,456 Crore. This tells you that both companies operate at a massive scale, even though there’s a slight difference.

HDFC Life received 2 complaints while Bajaj Allianz Life received 4.4 complaints for every 10,000 claims registered. You also need to know that despite the small difference, both companies have industry-leading numbers.

If you’re ever diagnosed with a debilitating illness, you would want your insurance policy to pay a fixed sum so that you can deal with any monetary obligations you may have. This is called a critical illness benefit. And with the two policies in question, it seemsClick2Protect Life extends a critical illness rider while eTouch doesn’t extend this option.

Some insurers will return all your premiums if you forego your policy before maturity, during a period specified by the insurer. In essence, you get all your premiums back, while also being protected under the term plan during this time. And it seems eTouch extends a zero-cost option, while Click2Protect Life doesn’t offer this benefit.

Click2Protect Life waives off all future premium payments if you are ever disabled (in an accident) or diagnosed with certain critical illnesses, while eTouch only waives off all future premium payments if you’re disabled (in an accident).

Some policies offer you the option of adding extra protection for accidental deaths. In which case, you get the option of choosing your death and accidental death cover separately. And while we recommend customers choose a comprehensive cover without worrying about the specifics of death precisely, you should find comfort in the fact that both policies extend this option anyway.

Some policies offer you a monthly income or a large lumpsum in the event you are disabled totally for life. However, it seems only Click2Protect Life extends this option.

Some policies will disburse the entire cover amount the moment you are diagnosed with a terminal illness. So even in the absence of death, you can still get the money and use it any way you wish. In this case however, eTouch extends this benefit while Click2Protect Life doesn’t.

Some policies automatically increase your cover by a certain amount (usually inflation) to always provide you with the necessary protection. And it’s disappointing to note that neither policy extends this benefit.

Some policies extend the option of increasing your total term cover(by a certain margin) even after you buy the policy. Unfortunately, in this case, neither policy makes this option available.