life insurance claim and settlement.

1. A STUDY ON CUSTOMER
PERCEPTION TOWARDS
CLAIM SETTLEMENT OF SBI
LIFE’S PRODUCT
SAROJ KUMAR KHADANGA
21DM005

2. Contents
1. Introduction
2. Company profile
3. Claim & Settlement process
4. Methodology
5. Findings & Suggestions
6. Conclusion

3.  A life insurance plan is a contract between an insurance policyholder and an insurance company,
where the insurer promises to pay a sum of money in exchange for a premium after a set period or
upon the death of an insured person.
 The life insurance sector in India comprises of, 24 are life insurance companies, Among the life
insurance companies, Life Insurance Corporation (LIC) of India is the only public sector company.
 Claim & settlement of policy acts as an indicator of their credibility.
Introduction

4. Core Value
 To know the perception of the
policyholders towards claim and
settlement of various products
offered by SBI Life Insurance
Companies in Bhubaneswar.
 To understand the reason for
which customers claim got
rejected.
Objective of the study
 This project is conducted by taking
only one region i.e. Bhubaneswar 1.
 The sample size of this project is
extracted from the claim data dated
from 1st January 2021 to 31st June
2022.
 Only death claims are considered for
this project.
Scope of the study

5. SBI Life Insurance
Type Public
Industry Financial services
Founded March 2001
Headquarters Mumbai, India
Area served Worldwide
Key people Mahesh Kumar Sharma
(MD & CEO)
Owner State Bank Of India,
Govt of India
Number of employees 18000+
Vision: "To be the
most trusted and
preferred life
insurance provider”
Mission: "To emerge as the leading
company offering a comprehensive
range of life insurance and pension
products at competitive prices,
ensuring high standards of customer
satisfaction and world class operating
efficiency thereby becoming a model
life insurance company in India in the
post liberalization period ".
Values:
Trustworthiness
Ambition
Innovation
Dynamism
Excellence

6.  INDIVIDUAL PLAN
 GROUP LOAN PROTECTION PLAN
 GROUP MICRO INSURANCE PLAN
 GROUP PLAN
 MONEY BACK POLICY
 CHILD PLAN
 RETIREMENT PLANS
 PROTECTION PLANS
 SAVING PLANS
SBI life products:

7. Claim & Settlement process:

8. Document verification
Individual death claim:
Mandatory Documents
Claim form.
Original policy document.
Original or Attested Death Certificate issued by local
authority.
Claimant’s current address proof.
Claimant’s photo ID proof.
Direct Credit Mandate form (download sign) Claimant’s
Valid bank passbook/statement or cancelled cheque with
pre-printed name and pre-printed bank account number.
Additional Documents
Medical attendant’s certificate.
Hospital treatment certificate.
Employer’s certificate (for salaried individuals).
Copy of FIR/Punchnama Report/Post Mortem.
Copy of Inquest Report/Police Final Report/Chemical
Analysis Report/Magistrate’s verdict.

9. Document verification
Group death claim:
Mandatory Documents
Claim Form.
Credit Life Claim Form.
Micro-Insurance Claim Form.
Swarna Jeevan Claim Form.
Sampoorna Suraksha Employer Employee Non EDLI Scheme
Claim form.
Sampoorna Suraksha Employer Employee EDLI Scheme Claim
Form.
Sampoorna Suraksha Housing Loan Claim Form.
Sampoorna Suraksha Non Employer Employee Scheme Claim
Form.
Certificate of Insurance.
Original Death Certificate issued by Local Authority OR
Attested copy of Death Certificate.
Banker’s Certificate (Only for Super Suraksha – Home Loan,
Car Loan, Tractor Loan Policies).
Claimant's current address proof.
Claimant's photo ID proof.
Claimant's Valid Bank pass book / Bank statement / cancelled
cheque.
Credit Account Statement / Loan Account Statement (for all
Credit life Cases).
Additional Documents
Medical attendant’s certificate.
Hospital treatment certificate.
Employer’s certificate (for salaried individuals).
Copy of FIR/Punchnama Report/Post Mortem.
Copy of Inquest Report/Police Final Report/Chemical Analysis
Report/Magistrate’s verdict.

10. Decision and settlement
After the received investigation is done, the amount payable is calculated based on
the policy selected. In case of any loan outstanding on the policy, the amount
payable is adjusted with the outstanding loan amount. If there are any bonuses
due they are added to the final settlement amount. The claims payments are
electronically transferred to the account details mentioned in the policy document.

11.  Data were collected from primary as well as secondary sources.
 A structured questionnaire is prepared to collect information from the customers. The sample size
of the survey was 241.
METHODOLOGY:

12. DATA INTERPRETATION
AND ANALYSIS

25. This has to consider at before the purchase of any policy.
Claim settlement ratio indicates how many claims a company has settled
against the number of claim received. Higher the CSR, the greater are the
chances of settlement of a claim.
Ideally, a consumer should buy from a company whose claim settlement ratio
is above 95 %.
In SBI life the claim settlement ratio (CSR) =
228
241
x 100 = 94.60%
Claim settlement ratio (CSR):

26. The claim rejection ratio (CRR) is a measure of the number of claims
rejected by an insurance company in a financial year.
It is calculated by dividing the number of claims repudiated with the total
number of claim filed.
In SBI life the claim rejection ratio (CRR) =
9
241
x 100 = 3.73%
Claim rejection ratio (CRR):

27.  After the survey I found CSR ratio almost reached to the satisfactory level (i.e. 94.6%) but
they should take necessary steps to increase the ratio.
 Almost 50% of respondents are very much satisfied with the behaviour of the staff of SBI
life which shows a positive impact on their business.
 Maximum of claim are successfully settled within 1 month of time which shows a better
operational performance of the company and it also help to attract the potential
customers.
 SBI life should give some efforts to reduce the load of documentation because maximum
of the customers mentioned difficulty in this process.
Findings and suggestions

28. After the survey, I found majority of the customers are
very much satisfied with their overall experience in
claim settlement which should be maintained by the
company in order to maximise the market share.
Maximum of claim are successfully settled within
satisfactory time level which shows a better
operational performance of the company and it also
help to attract the potential customers.
Conclusions

29. Thanks