What Is Claim Settlement Ratio In Car Insurance?

The Claim Settlement Ratio in car insurance is a percentage that represents the number of insurance claims an insurance company successfully pays out to policyholders in a given period compared to the total number of claims received during the same period. In simpler terms, it measures how effectively an insurance company fulfills its promises to policyholders when they file a claim for damages or losses. A higher claim settlement ratio is typically seen as a positive sign, indicating that the insurer has a strong track record of settling claims and providing financial support to policyholders when they need it. It's an important factor for policyholders to consider when evaluating the reliability of an insurance company.