As per the annual report of IRDA, the Life Insurance Corporation of India (LIC) has better record of paying death claims than that of private life insurers even though it holds more than 70% of the industry volume and there are about 2 dozen private players in the Insurance Industry.
The Life Insurance Corporation of India (LIC) is the largest insurance group and investment company in India where the Government of India has 100% stake. They hold more than 80% of the Life Insurance Business in India. The Company aims at “exploring and enhancing the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development.”
As per the annual report of Insurance Regulatory and Development Authority (IRDA), LIC has a better claim settlement ratio as compared to private insurers. The statistic revealed that LIC has settled 97.42% of the death claim as compared to 89.34% claim settlement by the private insurers for the financial year 2011-12. The average claim settlement ratio of the industry works out to be 96.26%.
The annual report also disclosed the fact that the claim ratio for the year has gone up to 97.42% as against the claim ratio of 97.03% for the previous year ended March 2011. The report also disclosed the fact that the private insurers rejected higher number of claims as compared to LIC but on the positive note, the claim settlement ratio of private players have increased to 89.34% in current year as compared to 86.04% for the corresponding period last year. As per the report, the overall claim settlement percentage of the industry as a whole increased slightly from 96.26% in 2011 to 95.58% in the previous year.
