Kathmandu. It is very important for every person to have life insurance. However, many people still consider insurance a waste of money and do not insure.
According to the Nepal Insurance Authority data, 45 percent of the population is covered under insurance so far. Insurance is very important. Through this, people can secure their future. In addition, heavy expenses can also be avoided in the future.
When most people take life insurance, they only look at premiums, tax exemptions and insurance amount. However, apart from this, there is another important thing to keep in mind when insuring. That is the claim payment ratio i.e. claim payment ratio (CPR).
What is CPR in insurance?
The CPR in life insurance or claim payment ratio determines how much claim the insurance company will give to your family in times of trouble. CPR tells how much the insurance company pays from the claim amount received by its customers. For example, if an insurance company has received 100,000 claims and the company has paid 75,000 of it, then the CPR of that insurance company is 75 percent.
Why is it necessary to check CPR?
The benefit of taking insurance is when the company helps you in difficult times. But if the company does not help you in difficult times, then what is the benefit of insurance? In such a situation, CPR strengthens trust in the company and assures people that the company will help in difficult times.
What is CSR in insurance?
Insurance also has the term Claim Settlement Ratio (CSR). Which means claim settlement ratio. Rikch tells us how many claims the company has made. For example, if the company has received 1,000 claims and cleared 960 of them, the company’s CSR will be 96 percent. It also strengthens people’s faith in the company.
The role of agents is important in the Nepal life insurance sector. It is through agents that people are insuring their lives. Some people don’t have to go to the company to get insurance.
After filling the form, the agent goes to the company and gives the insurance file to the insured. Therefore, the agent should inform the people about his company’s CPR and CSR. Doing so will increase people’s trust in the agent and also help in choosing the right company.
