Life Insurance
Life Insurance Companies Claim Settlement Ratio

  Claim settlement is one of the most important factors for both life insurance companies and policyholders. Easy, smooth, and quick claim settlement attracts customers to the insurance company…

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Claim settlement is one of the most important factors for both life insurance companies and policyholders. Easy, smooth, and quick claim settlement attracts customers to the insurance company, and it also represents the company's good reputation. Every policyholder is advised to know the Claim Settlement Ratio or CSR of the Life Insurance Company. Also, they should understand the claim settlement process of the insurance company.

IRDAI (Insurance Regulatory and Development Authority of India) publishes the annual report on the claim settlement ratio of all 24 life insurance companies in India. The report includes  data and percentages for the number of claims filed by policyholders, the number of claims settled and the number of claims rejected.

What is the Claim Settlement ratio or CSR?

Claim Settlement Ratio or CSR is the percentage of claims settled by a life insurance company in a year against the total claim made in a year. In simple words, it is the number of claims paid by the life insurance company against the number of claims made in a year.

For example, a life insurance company has a claim settlement ratio of 98% which means that the insurance company has settled 98 claims out of 100 claims.

Claim Settlement Ratio or CSR is one of the most important factors that every policyholder should consider while buying a life insurance policy. Each life insurance company has its claim settlement ratio and it varies from year to year.

How Can We Calculate the Life Insurance Claim Settlement Ratio?

Life Insurance Claim Settlement Ratio can be calculated with the following formula:

Claim Settlement Ratio: (Total number of claims settled/Total number of claims made in a year) x 100

For instance: There is a Life insurance company named “X”. X settled 90K claims out of 100K claims in the FY 2020-21. So, the claim settlement ratio of “X” will be 90%.

Claim Settlement Ratio of Life Insurance Companies (2020-2021)

Here is the list of claim settlement ratio of life insurance companies in India for the Financial Year 2020-21:

S.No.

Life Insurance Company

Individual Death Claim Settlement Ratio (CSR) 2020-21

1.

Aditya Birla Sun Life Insurance 

98.04%

2.

Aegon Life Insurance 

99.25%

3.

Ageas Federal Life Insurance 

95.07%

4.

Aviva Life Insurance 

98.01%

5.

Bajaj Allianz Life Insurance 

98.48%

6.

Bharti AXA Life Insurance 

99.05%

7.

Canara HSBC OBC Life Insurance 

97.10%

8.

Edelweiss Tokio Life Insurance 

97.01%

9.

Exide Life Insurance 

98.54%

10.

Future Generali Life Insurance 

94.86%

11.

HDFC Life Insurance 

98.01%

12.

ICICI Prudential Life Insurance 

97.90%

13.

IndiaFirst Life Insurance 

96.81%

14.

Kotak Mahindra Life Insurance 

98.50%

15.

Max Life Insurance 

99.35%

16.

PNB MetLife India Insurance

98.17%

17.

Pramerica Life Insurance 

98.61%

18.

Reliance Nippon Life Insurance

98.49%

19.

Sahara India Life Insurance

97.18%

20.

SBI Life Insurance 

93.09%

21.

Shriram Life Insurance 

95.12%

22.

Star Union Dai-ichi Life Insurance 

95.96%

23.

Tata AIA Life Insurance 

98.02%

24.

Life Insurance Corporation of India

98.62%

*Data has been sourced from IRDAI Annual Report FY 2020-21
 

S.No.

Life Insurance Company

Group Death Claim Settlement Ratio (CSR) 2020-21

1.

Aditya Birla Sun Life Insurance 

99.69%

2.

Aegon Life Insurance 

100%

3.

Ageas Federal Life Insurance 

88.00%

4.

Aviva Life Insurance 

99.84%

5.

Bajaj Allianz Life Insurance 

99.80%

6.

Bharti AXA Life Insurance 

97.65%

7.

Canara HSBC OBC Life Insurance 

99.47%

8.

Edelweiss Tokio Life Insurance 

99.27%

9.

Exide Life Insurance 

100%

10.

Future Generali Life Insurance 

93.08%

11.

HDFC Life Insurance 

99.50%

12.

ICICI Prudential Life Insurance 

97.93%

13.

IndiaFirst Life Insurance 

99.07%

14.

Kotak Mahindra Life Insurance 

99.43%

15.

Max Life Insurance 

99.27%

16.

PNB MetLife India Insurance

99.65%

17.

Pramerica Life Insurance 

99.29%

18.

Reliance Nippon Life Insurance

99.63%

19.

Sahara India Life Insurance

0

20.

SBI Life Insurance 

98.99%

21.

Shriram Life Insurance 

99.18%

22.

Star Union Dai-ichi Life Insurance 

90.34%

23.

Tata AIA Life Insurance 

99.32%

24.

Life Insurance Corporation of India

96.80%

*Data has been sourced from IRDAI Annual Report FY 2020-21

Points to note about Life Insurance Claim Settlement Ratio 

Some of the major points about the claim settlement ratio of life insurance companies:

  • Claim settlement changes every year.
  • Always check the claim settlement process along with the claim settlement ratio of the life insurance company.
  • You can check the number of claims received by the life insurance companies.
  • You can also check the pending claims of the life insurance companies.
  • Check the consistency of the claim settlement ratio

Importance of the Claim Settlement Ratio

The claim settlement ratio of a life insurance company is a very important factor for a customer to decide whether to buy a policy from them or not. If you choose an insurance company with a high claim settlement ratio or CSR, you will be assured that you or your family will receive the benefits promised in the policy documents. So, if you want a quick and hassle-free claim settlement, you need to find an insurance company with a high claim settlement ratio.

Types of Life Insurance Claims

There are three types of life insurance claims i.e. maturity claim, death claim, and rider claim. To know more about the types of claims in detail. Read Below:

  • Maturity Claim: It is a type of claim that is paid to the policyholder if the policyholder survives till the completion of the policy.
  • Death Claim: It is a type of claim in which the nominee requests the life insurance company if the policyholder dies in between the policy tenure.
  • Rider Claim: These are the optional benefits that policyholders can opt for while buying the life insurance policy by paying an additional premium amount. In these claims, policyholders are eligible to get compensation other than maturity and death benefits.

Required Documents for Life Insurance Claim Process

Below-mentioned are the documents that you need to submit to file a life insurance claim:

  • Claimant’s ID proof
  • Duly  signed claim form
  • Original policy document
  • First Investigation Report (FIR), if required
  • Post-mortem reports, if required
  • Hospital discharge summary
  • KYC documents of a beneficiary
  • Copy of bank statement and Canceled cheque 
  • Death certificate issued by the authority

Life Insurance Claim Settlement Process

To file a claim under life insurance, follow the steps given below:

  • Intimate the life insurance company
  • Submit the required documents
  • Insurance company will verify the documents
  • Once the verification is done, the insurance company will start processing the claim 

How to Avoid Life Insurance Claim Rejection?

Below mentioned are the primary ways to avoid the life insurance claim rejection:

  • Always provide correct information
  • Fill out the proposal form carefully
  • Pay your premium on time
  • Always disclose your medical history

 

Disclaimer: The information published in this article is for the reader′s reference only. The content of this information is to provide an overview of your life insurance needs and should not be relied upon for personal, medical, legal, or financial decisions; you should consult an appropriate professional for specific advice. The Company makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or any other items mentioned on this subject for any purpose whatsoever.