Motor OD Claim analysis by “claim Hub”

Summary by Vehicle Class

Vehicle Class % of Settled OD Claims Mean OD Claim Amount Median OD Claim Amount
Private cars 64.12% 28,580 14,584
Two-wheeler 27.94% 7,892 5,298
Goods Carriers 2.79% 1,12,734 52,040
Passenger Carriers 4.70% 32,870 15,082
Other 0.45% 69,842 19,693

 

 

Motor OD Claim analysis by “claim Hub”

Summary by Vehicle Class

 

Vehicle Class % of Settled OD Claims Mean OD Claim Amount Median OD Claim Amount
Private cars 64.12% 28,580 14,584
Two-wheeler 27.94% 7,892 5,298
Goods Carriers 2.79% 1,12,734 52,040
Passenger Carriers 4.70% 32,870 15,082
Other 0.45% 69,842 19,693

 

The average claim size for the Pvt cars comes to Rs. 28580/-

whereas the    claim size for small claims i.e. estimated loss  below

Rs. 50000/- is about Rs. 14584/-.

 

Summary by Nature of Loss

All Type of vehicles

Vehicle Class % of Settled OD Claims Mean OD Claim Amount Median OD Claim Amount
Accident External Means 97.93% 24,021 11,300
Fire 0.08% 162,476 30,900
Natural Disaster 0.64% 68,691 7,366
Theft of entire vehicle 0.91% 141,106 45,990
Others 0.43% 75,149 16,603

Claim size for AEM claims is rs. 24021 whereas Average claim size for small claims i.e.

with  estimate around Rs. 40000/-,  comes to Rs. 11300/- only

 

Summary by Nature of Loss

Private Car

 

NOL

% of Settled OD Claims Mean OD Claim Amount Median OD Claim Amount
Accident External Means 98.94% 26,990 14,521
Fire 0.04% 192,246 76,790
Natural Disaster 0.39% 156,234 77,870
Theft of entire vehicle 0.18% 500,434 385,109
Others 0.45% 76,840 19,521

 

Claim size for AEM claims for Pvt cars  is Rs. 24021 whereas Average claim size for small

claims i.e. with estimate around Rs. 40000/-  comes to Rs. 14521/- only

 

Summary by Nature of Loss

Passenger Carrying Vehicles

 

 

NOL

% of Settled OD Claims Mean OD Claim Amount Median OD Claim Amount
Accident External Means 97.85% 35,423 18,140
Fire 0.16% 233,859 132,924
Natural Disaster 0.61% 61,949 20,321
Theft of entire vehicle 0.76% 222,242 111,593
Others 0.62% 109,427 23,360

 

Mean OD Claim size i.e average claim size for passenger carrying vehicles is Rs. 35423

whereas median is Rs. 18140/- only

 

 

Frequency Categorisation

 

Range for each Category
Category Private Car Two Wheeler Goods Carrier Passengers Carriers
Low <= 10% <= 3% <=3% <=7%
Average 10%-20% 3%-6% 3%-6% 7%-10%
High 20%-30% 6%-8.91% 6%-7% 10%-18.5%
Very High >30% > 8.91% > 7% > 18.5%
India 19% 4% 4% 8%

 

Frequency means % of claims ie. Number claims reported for per hundred

 

policies issued So higher frequency means big losses.

 

 

 

Severity Categorisation

 

Category Private Car Two Wheeler Goods Carrier Passengers Carriers
Low <= 15,000 <= 6,000 <= 45,000 <= 15,000
Average 15,000-25,000 6,000-8,500 45,000-86,000 15,000-30,500
High 25,000-40,000 8,500-9,220 86,000-1,03,000 30,500-34,000
Very High >40,000 >9,220 > 1,03,000 >34,000
India 24,728 6,400 52,181 22,143

 

Severity means, how big is the claim size. The average claim size of Rs. 25000/- is the industry

standard whereas the claim size to the tune of Rs. 15000/-  for small claims i.e. estimate below

50000/- is considered OK.

 

                                                                   

 

 

 

 

                                                            District wise Claim Frequency & Severity- Two Wheelers

Two Wheeler

Top 10 Districts for Two Wheeler
Frequency Severity
GIRIDIH TUENSANG
SANGRUR DIMAPUR
KARGIL KHOWAI
SIRMOUR DADRA & NAGAR HAVELI
BANDIPORA PHEK
SAHARANPUR MON
FAZILKA KINNAUR
GIR SOMNATH KOHIMA
BARNALA KALIMPONG
KRISHNA NAMSAI

 

Three districts of the state of Punjab falls in high frequency category & are in top 10 districts pan India.

                                                                                   

                                                                       District wise Claim Frequency & Severity- Goods Carriers

Goods Carrying Vehicles

Top 10 Districts for Goods Carrier
Frequency Severity
FATEHPUR CHITTORGARH
CHITRAKOOT KARBI ANGLONG
BANDA CHAMPAWAT
KHUNTI SAHEBGANJ
CHARKHI DADRI SOUTH GARO HILLS
SAHIBZADA AJIT SINGH NAGAR DAMOH
ANJAW BISHNUPUR
MAHOBA WEST KAMENG
UPPER SUBANSIRI TUENSANG
UPPER SIANG WEST SINGHBHUM

SAS Nagar of Punjab & charkha Dadri of Haryana also fall in top ten list on pan

India basis for claim frequency.

 

 District wise Claim Frequency & Severity- Passenger Carriers

Passenger Carrier Vehicles

 

Top 10 Districts for Passenger Carrier
Frequency Severity
CHARKHI DADRI PAPUM PARE
KANINA GONDIA
PHEK DUMKA
SAHIBZADA AJIT SINGH NAGAR WEST KAMENG
PUDUCHERRY MALKANGIRI
HYDERABAD MUKTSAR
NUH DODA
GURGAON KRISHNA
MEWAT DIBANG VALLEY
HISAR LAWNGTLAI

One district of Punjab & 5 districts of Haryana fall in the top ten list for PCV’s

on pan India basis.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution of No. of claims based on claim paid bands-PVT Car

90% of the Pvt car claims  are settled within the claim amount of Rs. 50000/- but these are the assessed loss claims not to be mistaken as estimated loss.  And only 70% of the claim fall within the 50000/- category

Distribution of No. of claims based on claims paid amount bands-TW

 

80.53%  

 

 

 

 

 

 

 

 

14.79%

 

 

 

 

 

 

 

 

 

 

 

3.32%

 

 

 

 

 

 

 

 

 

 

 

1.80%

 

 

 

 

 

 

 

 

 

 

 

0.21%

 

 

 

 

 

 

 

 

 

 

 

0.05%

 

 

 

 

 

 

 

 

 

 

 

0.01%

 

 

 

 

 

 

 

 

 

 

 

0.01%

 

 

Ninety percent of the TW claims fall in the Rs. 50000/- estimated loss category.

 

 

No. Of Total Claims Settled to Total Claims Reported ratio – FY 2018-19

 

 

Pvt Car            TW          Goods Carrier  Passenger      others

Most of the insurers provide data for claim clearance at the end of the year just to show their efficiency but practically it is of no meaning to general public. For example if a claim was reported in the month of May or June or July & cleared in December or before the year end, the promptness in claim settlement does not reflect in the yearly claim settlement figures. The actual efficiency of the insurer is reflected in TAT i.e. how fast or within how many days the claim is being paid. The TAT for the Pvt. Sector insurers is around 15 days where as the public sector insurers are lagging on this very important aspect with TAT of over 60 days. This is the main reason for the reduction in market share of the public sector insurers & pushing them to the brink of extinction.