IRDA Life Insurance Claim Settlement Ratio 2023 (Updated)

The latest update for 2023 Life Insurance Claim Settlement Ratio has been published by IRDA (link). If you are looking for the highest claim settlement ratio in life insurance or the best life insurance company in 2023 (based on claim settlement ratio), then here is all updated 2023 data of Life Insurance Claim Settlement Ratio in India by IRDA.

What is Claim Settlement Ratio in Life Insurance? Claim Settlement Ratio (CSR) is the percentage of claims that a life insurance company settles in a year out of the total claims. Suppose an life insurer receives a total of 10,000 claims in 1 year. And out of which it settles 9831 claims by paying the sum assured benefits and rejects the remaining 169 claims. So the Claim Settlement Ratio for the insurance company would the be 98.31% (calculated as = 9831/10000).

IRDA Claim Settlement Ratio 2023 (Updated)

As per IRDA’s latest update and the IRDA Annual Report 2023, the Life Insurance Claim Settlement Ratio 2023 in India for the period 1st April 2021 to 31st March 2022 is given below.

The claim settlement ratio can be looked at from 2 angles – percentage of the number of claims settled as well as percentage of the amount of claims settled. There are 24 Life Insurance companies registered with IRDAI in India. Here are the claim settlement data for all life insurance companies in India listed below –

1. Aditya Birla Sun Life Insurance – 98.07% claims count settled (96.15% claim amount settled)
2. Aegon Life Insurance – 99.03% claims settled (98.76% amount settled)
3. Aegas Federal Life Insurance – 97.03% claims settled (91.02% amount settled)
4. Aviva Life Insurance – 98.39% claims settled (96.43% amount settled)
5. Bajaj Allianz Life Insurance – 99.02% claims settled (93.45% amount settled)
6. Bharti Axa Life Insurance – 99.09% claims settled (96.36% amount settled)
7. Canara HSBC Life Insurance – 98.44% claims settled (96.42% amount settled)
8. Edelweiss Tokio Life Insurance – 98.09% claims settled (95.12% amount settled)
9. Exide Life Insurance – 99.09% claims settled (96.29% amount settled)
10. Future Generali Life Insurance – 96.15% claims settled (89.60% amount settled)
11. HDFC Life Insurance 98.66% claims settled (89.38% amount settled)
12. ICICI Prudential Life Insurance – 97.82% claims settled (95.49% amount settled)
13. India First Life Insurance – 96.92% claims settled (91.10% amount settled)
14. Kotak Life Insurance – 98.82% claims settled (95.53% amount settled)
15. Max Life Insurance – 99.34% claims settled (96.71% amount settled)
16. PNB Met Life Insurance – 97.33% claims settled (93.35% amount settled)
17. Pramerica Life Insurance – 98.30% claims settled (96.80% amount settled)
18. Reliance Nippon Life Insurance – 98.67% claims settled (95.39% amount settled)
19. Sahara Life Insurance – 97.08% claims settled (97.09% amount settled)
20. SBI Life Insurance – 97.05% claims settled (94.55% amount settled)
21. Shriram Life Insurance – 82.39% claims settled (2.78% amount settled)
22. SUD Life Insurance – 97.42% claims settled (91.41% amount settled)
23. Tata AIA Life Insurance – 98.53% claims settled (94.65% amount settled)

That was about the private life insurance companies. And what about the big daddy LIC which also had the biggest LIC IPO recently?

• LIC – 98.74% claims settled (96.02% of claim amount settled)

So if you were looking for LIC life claim settlement ratio, or SBI life claim settlement ratio, or HDFC life claim settlement ratio, or ICICI life claim settlement ratio, or Max life claim settlement ratio, or TATA AIA life claim settlement ratio, or Bajaj life claim settlement ratio or Top 10 claim settlement ratio life insurance companies in India (2023) or which company has the highest claim settlement ratio in life insurance or the best claim settlement ratio in life insurnace in India (2023), then I hope you got your answers from the above listing of IRDA’s latest claims data.

While a high Claim Settlement Ratio is a reliable indicator that many would find comfort it in, it is also true that that it is not 100% fool-proof. As it is said that there are three kinds of lies: lies, damned lies, and statistics.” So we need to be careful about what we believe in. Though it may seem that a claim settlement ratio of 97% means that chances of claim settlement are 97%, the fact is that it is not that simple.

Also, don’t just focus on the % of number of claims settled. Check claim paid ratio by the amount as well. The claims paid ratio by amount indicates the percentage of the total value of claims submitted to an insurance company that is ultimately paid out. A high ratio might suggest that the insurer is paying out a large proportion of the total value of claims submitted to it, while a low ratio would suggest that the company is denying or delaying many claims.

Both claim paid ratio by numbers and claim paid ratios by amount are used to measure the financial performance of an insurance company, and to assess its ability to pay out claims to policyholders.

Remember one more thing. If we further divide the claim settlement data between types of policies (term plans, endowment plans, ULIPs, etc.), we might get further insights about which insurers prefer which types of policies to settle most claims.

While a high claim settlement ratio is a good thing, it is not the only thing to rely on. When buying life insurance, make sure you only buy plain term life insurance plans and not endowment or ULIP plans.

Always make sure to disclose everything (age, health conditions, family history, etc.) to the insurance company a the time of purchasing the life insurance. That way, the insurance company will (hopefully) not reject any claims for hiding any information. One more important thing. According to a provision now in the Insurance Act in India, the insures cannot reject any life claim on life insurance policy that has been active for at least 3 years. So this is legal clause which is beneficial and in favor of life insurance policyholders now.

So that was about the Latest IRDA Claim Settlement Ratio 2023 data that was released in India on 23rd December 2022. This I assume would have given you a fair idea about how to analyze the claim settlement ratio of life insurance companies in India and which company has the highest claim settlement ratio in life insurance or the best claim settlement ratio in life insurnace in India (2023)