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Claims Ratio of Life Insurance Companies in India for the last 5 years

Claims Settlement Ratio of Life Insurance Companies in India. Updated for the last 5 years.

By: Sachin Telawane | 
Read Time: 1 minute, 54 seconds | 
Last Updated: 22-09-2022
Claims Ratio of Life Insurance Companies in India for the last 5 years

Understanding the trends of Claim Settlement Ratio

Claim settlement ratio is a vital factor that a buyer looks forward to while buying a Life Insurance policy. The entire purpose of buying a Life Insurance policy is to provide financial protection to your family in case of unfortunate scenarios. If you are wondering why it is important to check the claim ratio, here are a few reasons:

  • High claim settlement ratio indicates more claims are being paid out by the insurance company

  • It indicates that the insurance company has strong underwriting standards

  • It provides greater assurance to the customer 

While buying a term insurance plan, it becomes all the more important to consider the claims ratio of the company.
 

What is the Claim Settlement Ratio?

Claim settlement ratio is the proportion of the number of claims paid by the insurance company against the number of claims received during the financial year. A consistently high claims settlement ratio is a good parameter to understand how good the underwriting and claims process of a company is managed. 

For example,

Assume that company A received 10,000 claims in a financial year. Out of which they paid a total of 9,600 claims and repudiated the rest of the claims. 

Claim Settlement Ratio = No. of Claims paid / No. of claims received

Thus, the claim settlement ratio in our example will be will be = 9,600/10,000 = 96% 

Every financial year, insurance companies publish their claim settlement ratio in their annual reports. We have listed down the claim ratios of the last 5 years to help you take a sound decision while buying a new life insurance policy.

Company 2021-22 2020-21 2019-20 2018-19 2017-18
LIC  NA 98.62% 96.70% 97.79% 98.04%
Max Life 99.34% 99.35% 99.22% 98.74% 98.26%
HDFC Life 98.66% 98.01% 99.07% 97.15% 97.80%
Aegon Life  99.03% 99.25% 98.01% 96.45% 95.67%
SBI Life  NA 93.09% 94.52% 95.03% 96.76%
ICICI Prudential 97.80% 97.90% 97.84% 98.58% 97.88%
Tata AIA Life 98.53% 98.02% 99.06% 99.07% 98.00%
Canara HSBC OBC    98.57% 97.10% 98.12% 94.04% 95.22%
Aditya Birla Sun Life  98.08% 98.04% 97.54% 97.15% 96.38%
Reliance Nippon Life  98.70% 98.49% 98.12% 97.71% 95.17%
Edelweiss tokio Life  98.09% 97.00% 83.44% 95.82% 95.24%
Bharti Axa Life  99.09% 99.05% 97.35% 97.28% 96.85%
Bajaj Allianz Life 98.48% 98.50% 98.02% 95.01% 92.04%
Kotak Life  99.50% 98.50% 96.38% 97.40% 93.72%
DHFL Pramerica Life  97.00% 98.61% 98.42% 96.80% 96.62%
Aviva Life 98.40% 98.01% 97.53% 96.06% 94.45%
Ageas Federal  97.03% 95.07% 96.47% 95.79% 91.99%
Sahara India  NA NA 89.45% 90.16% 82.74%
Future Generali Life  96.15% 94.86% 95.28% 95.16% 93.11%
PNB MetLife 98.17% 97.18% 97.18% 96.21% 91.12%
Star Union Dai-Ichi  NA 95.96% 96.96% 96.74% 92.26%
IndiaFirst  NA 96.81% 96.65% 92.82% 89.83%
Shriram Life  95.82% 95.12 91.61% 85.30% 80.23%


Source: IRDAI and Insurer Website 

A high and consistent claim ratio of the Life Insurance company ensures that the real purpose of the Life Insurance policy is met.

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Sachin Telawane
Sachin Telawane is a Content Manager and writes on various aspects of the Insurance industry. His enlightening insights on the insurance industry has guided the readers to make informed decisions in the course of purchasing insurance plans.

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