Claim Settlement Ratio

byPaytm Editorial TeamLast Updated: December 12, 2025

Meaning

Claim Settlement Ratio shows the percentage of claims an insurance company has approved and paid.

Definition

It is calculated as the number of claims settled divided by the number of claims received in a year.

Purpose

It helps customers judge how reliable an insurer is during claim processing.

Importance

A higher ratio means smoother claim approvals.

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