Claim Settlement Ratio of Life Insurance Companies in India

When you are looking for the best life insurance policy from a bunch of insurance companies in India, you

should determine the credibility of an organization according to its claim settlement ratio. So, what is a

claim settlement ratio?

Do you know that the very purpose of buying insurance will fail, if the insurance provider does not have

an effective claim settlement ratio? This means that the nominee to the insured or his family will not get

adequate claims when it is required. Therefore, when the beneficiaries are dependent on the proceedings

bought from one of the top-notch insurance companies in India, the sum assured should be paid when

claimed. If not, then it means a huge financial loss.

What can you understand from reading a claim settlement ratio?

It actually tells you the total number of death claims as settled by the company. It is easy to calculate the

number by dividing the total number of death claims as received by aggregate number of them settled.

To give you an example, suppose a life insurance company gets a total of 1000 claims, but manages to

settle only 980. Then, the claim settlement ration would be 98%. Indeed, the higher the claim settlement

ration, the more it is favorable for individuals. There are several life insurance companies in India that

have high settlement ratios. Take a look.

Insurance Companies and Settlement Ratios

LIC or Life Insurance Company- 98.19% claim settlement ratio

Max Life- 96.03% claim settlement ratio

Birla Sunlife- 95.30% claim settlement ratio

Tata AIA Life- 94.47% claim settlement ratio

Star Union Daichi- 94.08% claim settlement ratio

ICICI Prulife- 94.80% claim settlement ratio

PNB MetLife- 92.86% claim settlement ratio

Bajaj Allianz Life- 90.73% claim settlement ratio

Kotak Mahindra Life- 90.73% claim settlement ratio

HDFC Std- 90.50% claim settlement ratio

SBI Life- 90.06% claim settlement ratio

Sahara Life- 89.97% claim settlement ratio

Aegon Religare- 89.78% claim settlement ratio

Canara HSBC- 89.58% claim settlement ratio

Exide Life- 86.10% claim settlement ratio

Reliance Life- 83.84% claim settlement ratio

Future Generali- 83.70% claim settlement ratio

Aviva Life- 83.07% claim settlement ratio

Bharti AXA Life- 80.90% claim settlement ratio

IDBI Federal Life- 75.80% claim settlement ratio

India First Life- 72.21% claim settlement ratio

Shriram Life- 65.66% claim settlement ratio

DHFL Pramerica- 57.19% claim settlement ratio

Edelweiss Tokio- 57.14% claim settlement ratio

The above list shows you the top best insurance companies in India that have high claim settlement ratios.

Hence, looking at the list, it is easy to say that companies like LIC, MaxLife, Birla Sunlife, Star Union and

Tata AIA Life are the top 5 insurance companies in India.

The past performance of an insurance provider is best evaluated through the settlement claim ratios.

Apart from tracking the claim settlement ratio of insurance companies, it is also important to check the

duration of the claim settlement. This suggests how fast you are going to get your proceeds after informing

the insurance company.

Insurance companies in India with highest settlement of claim with 30 days of informing (in percentage):

LIC- 82.72%

ICICI Prudential- 91.89%

HDFC Standard- 85.37%

SBI Life- 83.55%

Max Life- 78.65%

Kotak Mahindra- 75.30%

Star Union Daichi- 33.33%

Bharti AXA- 62.52%

Bajaj Allianz- 64.64%

Canada HSBC- 36.35%

AVIVA- 75.01%

Reliance- 61.75%

Sahara- 28.27%

Tata AIA- 64.35%

ING Life- 67.66%

PNB Met Life- 72.64%

Birla Sunlife- 64.03%

IDBI Federal- 80.06%

India First- 69.32%

Future Generali- 43.12%

Thus, the above information will help you choose the best life insurance plans from a list of insurance

companies in India.