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Insuranace

In: Business and Management

Submitted By prashant012389
Words 283
Pages 2
InPublic Sector Insurance vs Private Sector Insurance

Today , there are ‘n’ number of players in the market, belonging to either public sector or private sector insurance – LIC of India, SBI Life, Kotak, Birla Sun Life, to name a few – offering many unique products. Before you choose an insurer, you must decide whether you should you go for a private sector insurer or a public sector one?

So what are the factors to be considered?

Claim Settlement Ratio
This is the ratio of number of claim settled by the company to number of claims received. While LIC had the highest claim settlement ratio, few private sector insurance companies such as ICICI Pru and Kotak also showed decent to good claim settlement ratio.

Factors in favor of Public Sector Insurance Companies

The claim process with public insurance companies is also relatively hassle free, and the insurance is not subject to endless number of terms and conditions. Take for example the terrorist attacks in Mumbai. The victims who had policies from private insurers were not compensated (the insurance companies said that death due to terrorist activities was not covered in their ‘terms and conditions’), while public sector insurer, LIC paid the entire amount claimed (This information is sourced from an insurance agent).

Pros of opting a private sector insurance company.

However a few factors that are in favour of private sector insurance companies are facilities like more variety and uniqueness in policy options, ease of premium payment, faster feedback system, etc.
If you concentrate on the claim settlement and trust factor then opt for LIC of India, if you are looking at policy features then definitely look at the options provided by private sector…...

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Words: 508 - Pages: 3