Claims ratio in own-damage motor insurance India FY 2019 by insurer
Claims ratio is the percentage of insurance claims costs that a company incurs in relation to the premiums earned in the financial year. An ideal claims ratio is considered to be between 75 and 90 percent. If the value is higher than expected, there is a potential of fraud investigation regarding the claim, while a lower ratio can indicate irrelevant products or a difficulty for customers in getting their rightful claims settled.