Halftruths 🤦
Why Most Insurance Stats Fool You
📊Weekly Market Snapshot
Markets caught a cold this week - Nifty and Sensex both slipped over 2.6%, while silver nosedived nearly 13% (someone check on the silver bugs).
Even crude oil took a tumble. Gold tried to stay shiny but couldn’t dodge the dip either. Only the rupee managed to stand still - small wins?
Tariffs from Trump and China spooked investors, while IT and metals took a beating. Still, the broader market showed surprising resilience early on.
By Friday, though, Nifty had lost over 1,000 points from Monday’s high.
All eyes now on the RBI, earnings season, and whether global drama takes a breather.
💡Weekly Family Financial Wisdom
Why Your Favorite Insurance Metric Is Hiding the Truth
Most people pick an insurance company just by looking at the claims settlement ratio.
But that number tells only half the story.
When you trust just one number, you risk choosing the wrong insurer.
You might get stuck with poor claim payouts when you need help the most.
I once did the same thing - picked the insurer with the “highest” ratio and still had my claim partially paid.
Here’s the truth: not all settled claims are fully paid.
To choose smartly, you need to check how much money insurers actually pay out.
54% of Star Health’s Claims Amounts Got Paid in 2023-24
That means nearly half the total claim amounts weren't paid out.
This stat shows how just looking at the number of claims settled can be misleading.
Your friend’s insurer might say they settle “90% of claims,” but if they only pay part of the money, does it really help you?
If you're not looking at the “claims paid ratio by amount,” you're missing the full picture.
So here’s what you should do: don’t just ask how many claims are settled - ask how much money was actually paid.
Let’s walk through how to get better at choosing the right insurance.
How To Choose the Right Insurer So You Don’t Get a Shocking Claim Rejection
Here’s what to check before picking your insurer.
Check the “Claims Paid Ratio by Amount.” This tells you how much money insurers actually pay out - not just how many claims they settle.
Compare product-wise or retail vs. group data. Some insurers handle corporate and individual policies very differently.
Look at grievance ratios and reasons for rejections. A low number of complaints and clear reasons for rejections show an honest, efficient insurer.
Next time you’re buying insurance, don’t stop at just the “popular” number - dig a little deeper.
Because a shiny claims settlement ratio without context can cost you peace of mind.
Now let’s see why this small step matters big-time.
Here’s Why You Should Dig Deeper Before Picking an Insurer
The real performance of an insurer hides behind incomplete numbers.
Many people think, “Oh, 95% settlement ratio - that’s great!”
But some of these “settled” claims are only partially paid.
And some insurers quietly skip the bigger claims while clearing the smaller ones.
For example:
ICICI Lombard shows a healthy 82.59% in number of claims settled.
But when you look at the amount paid - it’s just 63.98%. That’s a big gap.
The lesson? Dig deeper into the amount paid, not just the number of claims settled.
This one change can help you protect your money better and pick a company that truly pays when it matters.
A good insurance policy is not the one that’s easiest to buy - it’s the one that pays when you need it.
🛠️ Question of the Week
Struggling to balance work, family, and financial planning? Learn how to set clear goals, track your money effortlessly, and build lasting wealth - without spending hours on it. Get my 5-day email course on building a financial plan (FREE) → Click Here