One of the primary concerns when purchasing an insurance policy is the insurer’s ability to settle claims. In India, the insurance regulator mandates the public disclosure of the claims settlement ratio, offering a reliable measure for policyholders. This ratio aids in determining whether a life insurer and their insurance policies align with your needs.
In simple terms, the claims settlement ratio is a calculation metric that gauges the proportion of claims settled by an insurer against the total number of claims received. This ratio serves, as a crucial indicator of the insurer’s dedication to fulfilling insurance claims. A higher ratio assures the insured person's family, indicating a greater likelihood of the company settling claims efficiently in the event of the insured individual’s unfortunate demise.
Here’s the claim settlement ratio of top life insurance companies, as it is one of the vital factors a policyholder considers while purchasing a policy.
In a recent comparison, Max Life has outperformed others, leading the chart with a claim settlement ratio of 98.61% in Q3FY2024. Close on Max Life's heel is ICICI Prudential Life, with a competitive claim settlement ratio of 98.52% compared with 98.14% in Q2FY2024. Closely following is TATA AIA, with a claim settlement ratio of 95.69% for Q3FY24 compared with 90.55% in Q2FY24 and 77.28% in Q1FY2024.
The largest public sector company, the Life Insurance Corporation (LIC), holds a claim settlement ratio of 93.91% compared with 93.7% in Q2 and Q1 of FY 2024. HDFC Life is another key player in the private sector that has secured fourth place with a claim settlement ratio of 96.62%. Similarly, Bajaj Allianz Life, SBI Life, and Kotak Life have sealed their positions with 96.29%, 95.66% and 92.61% respectively.
Smooth and efficient claim settlement processes are paramount in the life insurance sector, enhancing the trustworthiness of insurance providers. When selecting your life insurer, examine the consistency of their claim settlement ratio over time. Better steer clear of companies with erratic fluctuations, as those with steady ratios are more reliable in ensuring the prompt settlement of your claims.
Rapid settlement not only helps in increasing trust but also boosts loyalty. To gain a comprehensive understanding of an insurance company's ability to settle claims, policyholders should thoroughly review and compare the claim settlement ratio before deciding to purchase an insurance policy.
FAQs
Claim settlement ratio of life insurance companies 2024 (in terms of numbers)
| Total Claims | Claims paid |
|---|
| Max Life | 19659 | 99.51% |
| HDFC Life | 17558 | 99.39% |
| Aegon | 316 | 99.37% |
| Edelweiss Tokio | 500 | 99.20% |
23 more rowsMar 1, 2024
Max Life Insurance has the greatest claim settlement ratio in terms of claim number, with 99.34% for the fiscal year 2021-22. Exide Life Insurance and Bharti Axa Life Insurance came in second with a 99.09 percent death settlement percentage.
What is the ideal claim settlement ratio? ›
1. A claim settlement ratio of more than 85% is a good sign, making the insurer trustworthy. But insurance companies having a high CSR of more than 90-95% is a better option.
Which company has the highest claim settlement ratio in health insurance? ›
Among the private health and general insurance companies, Reliance General Insurance tops the list with 98.75% of claims settled within the first three months of initiating the claim in 2023-24. HDFC Ergo General Insurance comes next.
What is the claim settlement ratio for Metlife insurance? ›
Q: What is PNB Metlife Claim Ratio in FY 2022-23? Ans: PNB Metlife Claim Settlement Ratio in FY 2022-23 is 99.1%.
What is the claim settlement ratio of star health insurance? ›
Star health insurance has a claim settlement ratio of 99.06.
What is a good claims ratio? ›
In the sectional title environment, a claims ratio of 35-55% is desirable to maintain stable premium rates. As commission and policy underwriting costs make up 30-40% of the premium, a loss ratio of 60% may result in a break-even position for the underwriting manager/insurer.
What is the difference between claim ratio and claim settlement ratio? ›
So, if the claim settlement ratio of an insurance company is 92%, it means that out of 100 claims filed, 92 claims are settled within the given timeline. The incurred claim ratio, on the other hand, is the percentage of the total claim amount paid to the total premium collected in a given time.
What is the 100 claim settlement ratio? ›
Claim Settlement Ratio is calculated as (total claims settled / total claims filed) multiplied by 100.
Which insurance company has the highest payout? ›
What Are The Top Life Insurance Companies In India?
| Life Insurance Companies in India | Claim Settlement Ratio (FY 2022-23) |
|---|
| IndiaFirst Life Insurance Company | 96.92% |
| Kotak Mahindra Life Insurance Company | 98.82% |
| Life Insurance Corporation of India Company | 98.74% |
| Max Life Insurance Company | 99.34% |
18 more rowsBerkshire Hathaway Inc.
(NYSE:BRK-A) ranks first on our list of the most profitable insurance companies.
Which car insurance has the highest claim-settlement ratio? ›
As of January 2024, SBI Car Insurance had a claims settlement ratio of 100 percent in India. It was followed by HDFC ERGO Car Insurance and Royal Sundaram Car Insurance with a settlement ratio of 99 and 98.6 percent respectively.
How long does it take for Max Life claims to settle? ›
As per regulations, all valid claims are to be settled within 30 days after all necessary documents /clarifications have been received. In case, the claim warrants further verification, it may take upto 120 days to settle the claim.
Is Max Life safe? ›
Max Life is one of the companies with the highest claim settlement ratio for the FY 2021-22 with a CSR of 99.34%. This means that the company has a better chance of settling your family's claims in case of your unfortunate death.
What is the solvency ratio of Max Life Insurance? ›
It reflects the company's ability to settle its long-term debts. A higher solvency ratio means that a company is comfortably placed to pay out claims. Max Life has a solvency ratio of 172%, more than 1.15 times the mandatory 150%, which indicates our strong and stable financial position.
What is the credit rating of Max Life Insurance? ›
9) Credit Rating: "CRISIL AA+/stable" and "ICRA AA+/stable".
