Star Health Insurance Claims Settlement Ratio Analysis 2024-25

Star Health and Allied Insurance Co. Ltd. has demonstrated robust claims management in 2024-25, processing a significant volume of claims efficiently. This analysis provides insights into the company's claims handling performance. 

Star Health and Allied Insurance Co. Claims Overview 

In 2024-25, Star Health started with 2,01,662 outstanding claims. During the year, 23,74,200 new claims were booked.  

Out of these, 20,22,177 claims were successfully paid, showcasing the company's commitment to timely settlements.  

Meanwhile, 3,17,661 claims were repudiated, and the period ended with 2,36,024 outstanding claims. 

Age Analysis of Number of Claims Paid (%)  

Claim Settlement Ratio as a Performance Indicator  

Claim settlement ratio reflects the percentage of claims settled by an insurer out of the total claims received in a given period.  

IRDAI data focuses on claims settled within 3 months, as timely settlement is a key indicator of operational efficiency in health and general insurance. 

Age Analysis of Claims Paid 

The efficiency of Star Health's claims processing is evident in the age analysis. An impressive 99.81% of claims were settled within 3 months.  

A small fraction, 0.16%, took between 3 to 6 months, and only 0.03% extended to 6 months to less than 1 year.  

Notably, no claims exceeded 1 year, highlighting the company's effective claims management system. 

Read More: LIC, Bajaj Allianz, SBI Life Report Higher Premium Collections as Industry Crosses ₹4 Trillion in FY26! 

Claims Repudiation and Closure 

During the period, 3,17,661 claims were repudiated, indicating a rigorous assessment process to ensure only valid claims are honoured.  

The closure of claims without payment was not explicitly detailed, suggesting a focus on either settlement or repudiation. 

Outstanding Claims at Year-End 

By the end of the period, Star Health had 2,36,024 outstanding claims. This figure reflects the ongoing efforts to manage and resolve claims efficiently, maintaining a balance between new claims and those processed. 

Conclusion 

Star Health's claims management in 2024-25 highlights its efficiency and commitment to customer satisfaction. With 99.81% of claims settled within 3 months, the company has set a benchmark in the insurance industry for prompt and effective claims processing. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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