Choosing the right car insurance provider is a critical decision for vehicle owners in India. One of the most reliable indicators of an insurer’s claim reliability is the Claim Settlement Ratio (CSR), the percentage of claims an insurer settles against the total number of claims received in a financial year. However, how quickly these claims are settled is becoming increasingly important for policyholders.
A higher CSR generally indicates a greater likelihood of timely and fair claim approval. This article analyses car insurance companies in India with strong claim settlement performance, based on recent financial disclosures and industry data, to help policyholders make an informed decision.
Comparison of Top Car Insurance Providers by Claim Settlement Indicators
The table below ranks the top car insurance providers based on claim settlement indicators. The comparison highlights not just settlement ratios, but also how efficiently claims are resolved and processed.
| ACKO | HDFC ERGO | Tata AIG | Bajaj General Insurance |
Claim Settlement Ratio in FY2024-25 | 99.19% | 92.70% | 89.74% | 97.04% |
Claims Process Style | Fully digital, paperless | Hybrid (digital + offline) | Digital + agent-assisted | Digital + branch support |
Based on the claim settlement metrics of the four large companies, most insurers perform competitively on headline ratios, though clear differences emerge when settlement speed and claims experience are compared.
ACKO demonstrates a strong focus on speed and operational efficiency. With a claim settlement ratio of 99.19% within three months in FY2024–25, the highest among the compared insurers, ACKO sets a clear benchmark for timely claim resolution. It's fully digital, paperless claims process further reduces dependency on manual claims processing, helping ensure faster and more predictable outcomes for customers.
HDFC ERGO reports a claim settlement ratio of 92.70%, which reflects the settlement of both current and prior-period claims. While this indicates scale and backlog clearance, the insurer follows a hybrid claims model that may involve longer processing cycles compared to fully digital workflows.
Tata AIG recorded a three-month claim settlement ratio of 89.74% in FY2024–25. The insurer follows a digital and agent-assisted approach, which may appeal to customers who prefer guided support. However, involvement of intermediaries can sometimes add variability to settlement timelines.
Bajaj General Insurance reported a 97.04% claim settlement ratio for FY2024-25, indicating reasonable operational efficiency. Its digital-plus-branch model offers flexibility, although claims experience may vary depending on the chosen mode of interaction.
How Is Claim Settlement Ratio (CSR) Calculated?
The Claim Settlement Ratio (CSR) is generally calculated as the percentage of claims settled by an insurance company compared to the total number of claims it received during a financial year.
Formula:
Claim Settlement Ratio (CSR) = (Number of Claims Settled / Number of Claims Received) × 100
For example, if an insurer receives 1,00,000 claims in a financial year and settles 95,000 of them, its CSR would be:
(95,000 / 1,00,000) × 100 = 95%
What “Claims Settled” Typically Includes
- Claims paid in full
- Claims paid partially
- Claims closed after investigation or documentation review
Final Call: Which One to Choose?
On the whole, while all four insurers demonstrate acceptable claim settlement performance, customers prioritising faster resolution and minimal friction may find a digital-first insurer more suitable. With its timely claim settlement ratio and fully paperless process, ACKO emerges as a strong choice for policyholders seeking efficiency and predictability. Other insurers such as HDFC ERGO, Tata AIG, and Bajaj General Insurance may suit customers who prefer assisted or branch-based support models.