Best Life Insurance Companies : Claim Settlement Ratio 2013-14

Insurance Regulatory Development Authority has released its Annual report for 2013-2014 on 8th January,2015. Based on the annual report I had listed down the best Life Insurance companies. The criteria for the selection is CLAIM SETTLEMENT RATIO 2013-14.

What is Claim Settlement Ratio in Insurance?

Claim settlement is one of the most important services that an insurance company can provide to its customers. Insurance companies have an obligation to settle claims promptly. For instance, if a life insurance company receives 1000 death claims and settles 980, the claim settlement ratio of that company would be 98%.

Best Life Insurance Companies based on Latest Claim Settlement Ratio 2013-14

(Click on the image to enlarge and open it in a new browser window)

Life Insurance CLAIM SETTLEMENT RATIO 2013-14

How to read IRDA Claim Settlement Ratio Table?

Let me explain on how to understand the numbers given in the above table. Let us consider Sl.No 1 which has data regarding LIC. During the period 2013-14 the total number of claims (no of policies) received by LIC of India are 7,60,344. This is inclusive Last period’s pending claims and this period’s (2013-14) claims that are booked or intimated.

7,46,212 no of policies out of total 7,60,344 policies were settled during the period 2013-14. This translates into a claim settlement ratio of 98.14% for LIC.

The total claimed amount (Benefit Amount) on LIC policies during 2013-14 was Rs 8,905 crore. Out of which Rs 8,475 crore worth claims are settled.

What is Claims repudiated, Claims Pending & Claims Written Back:

As per the above explanation LIC gets 98.14/100. So, what happened to 1.86% (100-98.14%)of claims (no of policies)?

These claims fall under the category of claims repudiated or pending or written back. (Repudiated means Claim rejected. Pending are yet to be settled and Written back claims are ‘sent back for more information’).

Important Points to ponder upon:

  • LIC of India, ICICI Prudential Life and HDFC Life are the top Life Insurance companies in terms of best Claim Settlement Ratio (2013-14)
  • DLF Pramerica and Edelweiss Tokio Life Insurance companies have higher number of Repudiated Claims
  • LIC, ICICI and HDFC were the toppers in 2012-13 also.
  • The claims settlement ratio does not talk about the type of policies i.e., whether the claims that were received are Term or endowment or money back plans.
  • New Life Insurance Companies will generally have Low Claim Settlement Ratios
  • As per IRDAI’s annual report the industry’s settlement ratio had slightly increased to 96.75% in 2013-14 from 96.41% in 2012-13 and the repudiation ratio had remained almost at the same level of 2.08% in 2013-14 as in 2012-13 (2.10%).
  • Before buying any type of plan, do look at the company’s Claim Settlement Ratio
  • Do not hide any facts while filling the proposal form. This will ensure that your claim (after the unfortunate event)is settled.
  • Though Claim Settlement record is one of the important factors while choosing your life insurance plan, it is advisable to go for only Term Insurance. You can opt for a Term plan based on the claim settlement record. The other deciding factors can be cost of premium, features, optional riders, quality of service and your comfort level with the Brand.

Most companies cite incomplete documentation or concealment of facts as a reason for rejecting claims. Hence, while buying a life insurance it is of utmost importance that you furnish accurate information and ensure that all paper work is into place. Give importance to claim settlements record and do not get swayed away by higher returns / tax benefits alone.

( Image courtesy of David Castillo Dominici at

  • SS Rao says:

    in which page of IRDA annual report we will get the CSR?

  • B K Gupta says:

    Please provide 2015 e term claim settlement ratio ??

  • Ankur says:


    Can you please check my understanding on below points and explain the last one?

    #1 We will pay the Death Benefit (the Sum Assured chosen by you) to your nominee, on the first occurrence of either:
    Death of the Life Assured, or
    My understanding is Natural Death or any type of death- correct?

    #2 Diagnosis of Terminal Illness
    My understanding is disease like cancer which can not be cured – is this correct?

    #3 On diagnosis of Permanent Disability due to an accident, the future premiums under your policy for all benefits are waived.

    I didn’t understand this? can you pls exlain.


  • Mayyur Mevada says:

    My name is mayur n m teacher in private school n my whole family depend on me so which plan i should for better future…..
    I m confused for term plan n policy plans…….
    So pls suggest me better idea

  • pravin says:

    Dear Sir,
    what is the process of e term plan settlement? if someone who opt online term plan and unfortunately he/she dies.then what is the process?

    • Dear Pravin,
      Nominee has to intimate about the claim to life insurance company with all the documents as mentioned in the policy document.

      Irrespective of the type of life insurance products, below documents can be the basic requirement to be accompanied for any claim case:-

      Claims Form
      Death certificate issued by the Municipal Corporation(in case of death claim)
      Original Policy Document
      Beneficiary’s Residence & Identity Proof (Original seen & verified stamp along with signature to be affixed on 100% cases)
      Advance Discharge Voucher
      NEFT Mandate along with Account Proof..

      a) Cause of Death –Accidental/Murder/Suicide

      Police records viz. First investigation report, panchnama, inquest report and final investigation report to be attested by police authorities
      Post Mortem & Viscera report attested by police authorities.

      b) Cause of Death –Natural

      A copy of medical records at the time of death.
      A copy of medical records for past illness/ailments
      Doctor’s /Hospital’s certificate attested by appropriate authorities
      Family Doctor’s certificate attested by appropriate authorities
      Employer’s certificate attested by appropriate authorities

      2) If there are any requirements raised by your LI company for checking the admissibility or otherwise of the claim, the same needs to be addressed by the Claimant (nominee).

  • Prashant says:

    I had new India insurance individual health plan 150000 for each. Included 4 family members. Since last 5year. Father age 58 Mom 53
    Is it possible convert individual to floater plan around 5 lakhs and also without health check up

  • Nagabhushan says:

    What’s your opinion about exide life insurance company in terms of service and claim settlement

  • Raju V says:

    Customer service of HDFC life online is very pathetic. I tried to take a term insurance plan proposal vide no Proposal No.:17830243 . I made the payment in August for a risk cover of Rs. 75 lacs for 25 years and completed all medical tests on 4-sep-15. I personally handed over all documents for HDFC life office in Coimbatore on 3rd sept 15 and post this there was no reply. Till payment was made , they called for at least 5 times a day and automatic mails used to come to my inbox once every hour. I complained on the delay and I came to understand that they are using inexperienced rookie people to handle the customer and they keep asking the same questions without understanding the customer’s explanation and cannot find any solution. They started giving contradictory answers like medical reports not received, documents not received and so on. I had to explain to them that I have handed over all documents to HDFC life in their office in Coimbatore. I got completely annoyed and requested them to cancel the policy which they did’nt do, then they came up and confrimed that they have received all documents except photograph. I refused to upload the photograph and asked them to collect from me, which they refused. At this point, I gave them an ultimatum stating that they should either issue the policy or return back the whole amount or else I may be forced to approach Ombudsman. At this juncture, HDFC life agreed to refund the amount deducting medical test expenses. I protested stating that the outage has happened from HDFC life side because they failed to get the documents from the respective office on time and hence the delay is from their side. They have still not solved the problem and I have now started escalating. I want people going to this policy to be doubly careful because if the customer service even before starting the policy is pathetic, you may imagine on what will happen if risk happens and the insurer is no more – I was told that they give some reason for either delaying or not making payments if risk occurs. I am now taking up with insurance ombudsman. Regards Raju V Mobile no 81299 68868

  • Manjit says:

    Dear Sir,

    I want to buy term insurance of 50 lacs but i am confused between pnb metlife and maxlife as premium of pnb metlife is low (cover till age of 75 years) whereas maxlife premium is more (cover till age of 70 years). As claim settlement ratio of maxlife is high i am bit confused so kindly help me out and name any one of the above which is better according to you.

    • Dear Manjit,
      You can buy any one as per your requirements, as long as you disclose all the required info in proposal form honestly. Policy tenure can be chosen based on your expected retirement age or/and till the time you expect to have financial commitments/liabilities.

  • Tirtha says:

    Dear Sree,

    I am now 40y….5 yrs. back I took a term policy of LIC (25L @ 9925/- for 25 yrs.) thru an agent and on the same FY I took another e-term plan of HDFC Click2Protect of same 25L @ 6500/- for 25 yrs… I am feeling an urge to increase the SA and found both the policies have increased their prem. heavily…..Click2Protect has been stopped by the co. & introduced some new policy….now my question is that – currently I m covered with 50L for 16500/- roughly….should I continue with LIC’s one which is much higher rate of prem. but having good claim settlement ratio….on the other hand HDFC / SBI Life offers same coverage at comparatively lesser prem….If I choose for 35-40L SA for 25y, my current prem. @ HDFC / SBI Life will come around 10-12K p.a…..pls. guide….

  • Rohan says:


    I have query regarding my term plan.

    Last year I had purchased LIC offline term plan (Amulya Jeevan) for SA 25,00,000 with yearly premium of around 6,000 in Sept 2014.

    At that time my annual salary was 3,00,000 and I have submitted 2 years ITR.

    Later in Jan/Feb 2015 I left my working for competitive exam preparations and my income is still irregular.

    My premium for the said policy is due on 25th Sept 2015.

    I want to know what impact change in income after policy is accepted plays at time of death claim. should I continue with it or do I inform LIC about change in my income.

    Also I am in mood of closing other costly saving cum insurance plans of LIC.

  • David - says:

    Okay, this is good. I believe Asia really is a growing market for life insurance policy in the world. Especially in India, as one of the most growing country economically. People will start to became aware of the importance of life insurance in the coming days and it will proof as a good type of investment in the long term. And with a good claim background will surely give people encouragement in trusting life insurance company more. Nice input there Sreekanth.

  • Kumaran says:

    Hi Sree,

    I am 32 now & planning for a term insurance for 1C.

    My question is Even HDFC & Max are leading the table than SBI, some of my friends suggesting that SBI with the background of Nationalized bank will be better in long term (for settlement) than HDFC with background of private sector bank (But ranked 45 in world). Please suggest me, whether opting HDFC than SBI for premium and other benefits will be correct or to go by friends suggestion ???

    Kindly guide

  • Kaustubh says:

    Would you have following data for US region (Life Insurance domain)

    1.Average Cost of handling a claim
    2.Average TAT of Claims Settlement

  • mssoni says:

    is lic or pnbmetlife better for term insurance. premium of lic is alsmost twice compared to pnb metlife. but what about stellement ratio.

    pl email reply

  • sushant says:

    Dear sir,
    Will u provide me financial planning advice/consultancy.
    I want to meet u personally.

  • D. R. Laxmi says:

    How is overall performance of TATA AIA Life Insurance??

  • saket says:

    I wanna purchase one online term insurance plan, I have been looking for 75 lakh abd my age is 33yrs. Based on premium(8200 including tax) and medical facility available at my home town I have shortlisted bharti axa. Is it fine or not?please suggest some alternative, itss very urgent

  • amit says:

    I want purchase a term plan hdfc click2 protect ya ageon religare i term pl. Advice me. My age 32 years.

  • AMOL says:

    Hello Sreekanth,

    Big thanks for posting such valuable information 🙂

    I am opting for HDFC LIFE CLICK2PROTECT PLUS life option plan. Both policy bazar and HDFC life representative called me to assist. Can you please tell me, with whom should I complete further process. Are there any benefits I get from policy bazar if I go though them.


    • Dear Amol,
      Suggest you go with Direct (with HDFC)..but ask them all your queries while completing the formalities. Do mention all the required information accurately and honestly in the proposal form.

  • Yogesh Ghodwade says:

    Hi Sreekanth,

    I am completely new to the investment. I have been following your blogs regularly; after reading them I have become serious about saving and investing. Thank You!

    I have recently bought SBI eShield online term plan(Age:24, Death Cover: 1 cr. , Premium: Rs. 9052, Tenure:30 Years) and is still in Grace period.

    Have also come across another online term policy (HDFC Click 2 Protect Plus) which provides same benefit for a premium of Rs.8300.

    Shall I cancel the SBI eShield plan and opt for HDFC Click 2 Protect Plus because surplus, if invested in Equity Mutual Funds through SIP will give good returns.

    • Dear Yogesh,
      Both the companies are good in terms of claim settlement and branch network (for customer service..).
      Do note that you need to undergo the medical tests again.
      If I am in you place, I will stick to my decision. (Did you compare the term plans offered by diff companies before making the purchase?)

  • dildar says:

    dear but company of Bajaj Allianz life r add any policy bond and add paper r decal.97.45?????????

  • joydeep says:

    LIC topper again…this must have given you sleepless nights… You are very smart…You concluded by promoting/advertising/writing for Term Plans at the end……..You guys are here to promote Term Plans….. I don’t understand the rationale….

    • Dear Joydeep,
      I am aware that you are an Agent with LIC and a hardcore fan of LIC.
      Let me reiterate, I neither hate or like LIC. I just review their products and provide unbiased information to my blog readers.
      I find your comments as silly, meaningless and sometimes funny too 🙂
      By the by, you have posted the above comment at midnight 1:30am, so who is having sleepless nights? Lol 🙂

  • akshay says:

    is that possible to get the claim settlement ratio of only term insurance?

    • Dear Akshay,
      As of now, the IRDA’s annual report gives us data on an aggregate basis. I believe we may soon get a chance to look at category wise (product type wise) claim settlement ratios.

  • Krishna says:

    Can you provide the above details in excel?


  • Paras says:

    Is it latest claim settlement ratio????

  • Good informative post Sreekanth.
    Yes, we should prefer the company with good claim settlement ratio. Same time, we have to be extra honest in disclosing while taking the policy.

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