IRDAI Claim Settlement Ratio for 2018-19
IRDAI recently published the annual report for FY 2018-19 that covers the Claim Settlement Ratio (CSR) of life insurance companies in India for 2018-19. The latest IRDAI report that was published on 16th December 2019, will help you to pick the right life insurance company in the year 2020. “Claim Settlement Ratio” report is basically a report of the performance of every insurance company, and with the help of this, we can decide which insurance company we should go with.
On the basis of performance, we can choose the best product and this is what we want if we are willing to pay for anything. Looking for the best is our nature, and it’s IRDA who played an immense role by releasing CSR reports. A whole year, the insurance company’s number policies issues, number of claims, and number of claim settlements everything that’ll help the people and the society for choosing the best insurance company, released by IRDA annual report.
Table Content
Know About Claim Settlement Ratio
Claim Settlement Ratio is the percentage of the number of claims paid to the total claims received by an insurance company. It is the ratio of death claims settled against the claims received during a financial year.
| Claim Settlement Ratio = Total claims settled / Total claims received* Where Total Claims received * = (Claims reported in the financial year + claims pending at the start of the year) |
For example, a life insurance company received 100 claims and settled 96 claims, then the claim settlement ratio is 96%. The remaining 4% was rejected by the life insurance company. Based on the latest CSR data, you can assume the approach of insurance companies while with death claims.
Some of the insurance companies did remarkable jobs, and some insurance did their best, the difference between doing a remarkable job & doing the job, provides you a position in a CSR report according to your job done.
Claim Settlement Ratio of Life Insurance Companies
Given below is the latest Claim Settlement Ratio of all life insurance companies for FY 2018-19, as released by IRDAI.
| Insurance Company | Claims Pending at start of the period | Claims Initiated | Total Claims | Claims Paid | CSR% (FY 2018-19) |
|---|---|---|---|---|---|
| Tata AIA | 0 | 2700 | 2700 | 2675 | 99.07% |
| HDFC Life | 65 | 12881 | 12946 | 12822 | 99.04% |
| Max Life | 2 | 15085 | 15087 | 14897 | 99.22% |
| ICICI Prudential | 27 | 10799 | 10826 | 10672 | 98.58% |
| Aegon Life | 0 | 507 | 507 | 489 | 98.01% |
| LIC | 569 | 750381 | 750950 | 734328 | 97.79% |
| Reliance Nippon Life | 4 | 8367 | 8371 | 8179 | 97.71% |
| Kotak Mahindra Life | 18 | 3020 | 3038 | 2959 | 97.40% |
| Bharti AXA Life | 7 | 1058 | 1065 | 1036 | 97.28% |
| Aditya Birla Sun Life | 45 | 5215 | 5260 | 5110 | 97.15% |
| Exide Life | 5 | 3330 | 3335 | 3236 | 97.03% |
| Pramerica Life | 7 | 649 | 656 | 635 | 96.80% |
| Star Union Life | 12 | 1246 | 1258 | 1217 | 96.74% |
| PNB Metlife | 8 | 4162 | 4170 | 4012 | 96.21% |
| Aviva Life | 8 | 930 | 938 | 901 | 96.06% |
| Edelweiss Tokio Life | 0 | 239 | 239 | 229 | 95.82% |
| IDBI Federal | 6 | 1300 | 1306 | 1251 | 95.79% |
| Future Generali Life | 19 | 1138 | 1157 | 1101 | 95.16% |
| SBI Life | 72 | 19830 | 19902 | 18913 | 95.03% |
| Bajaj Allianz Life | 250 | 12517 | 12767 | 12130 | 95.01% |
| Canara HSBC OBC | 2 | 1004 | 1006 | 946 | 94.04% |
| India First | 3 | 2239 | 2242 | 2081 | 92.82% |
| Sahara Life | 59 | 622 | 681 | 614 | 90.16% |
| Shriram Life | 62 | 2768 | 2830 | 2414 | 85.30% |
Key Findings
- There are twenty life insurers having a claim settlement ratio equal to or higher than 95%. It includes Tata AIA (07%), HDFC Life (99.04%), Max Life (99.22%), ICICI Prudential (98.58%), LIC (97.79%), Reliance Nippon Life (97.71%), Kotak Mahindra Life (97.40%), Bharti AXA Life (97.28%), Aditya Birla Sun Life (97.15%), Exide Life (97.03%), Pramerica Life (96.80%), Star Union (96.74%), Aegon Life (98.01%), PNB Met Life (96.21%), Aviva Life (96.06%), Edelweiss Tokio (95.82%), IDBI Federal (95.79%), Future Generali Life (95.16%), SBI Life (95.03%), Bajaj Allianz Life (95.01%).
- There are three life insurers having a claim settlement ratio in the range of 90-95%. It includes Canara HSBC OBC (94.04%), India First (92.82%), and Sahara Life (90.16%).
- Shriram Life is the only life insurer having a claim settlement ratio of less than 90%. It has a CSR of 85.30%.
- For private insurance companies, the settlement ratio has gone up by 1.40% and stands at 96.64% during the FY 2018-19 compared to 95.24% in the previous year. For stand-alone government-run life insurance companies, LIC has a settlement ratio of 97.79% (decrease of 0.25%) in FY 2018-19 compared to 98.04% in the previous year.
To know the previous year’s CSR, click on- the claim settlement ratio of FY 2017-18
CSR Trend of Life Insurance Companies
Let’s have a thorough insight into the trend of claim settlement ratio of life insurance companies in FY 2018-19 from the previous year.
Claim Settlement Amount of Life Insurance Companies in FY 2018-19
When it comes to choosing the best life insurance company, you also need to ascertain the number of claims settled by the company during the financial year 2018-19. A life insurance company has a high amount of average claim settled signifies a green signal for settling the claims promptly.
Know Life Insurance Companies last 5 years claim settlement Ratio
Tata AIA has the highest claim settlement ratio of 99.07%, however, the average claim settled amount is around Rs 5.8 lacs sum assured. Hence, it is quite obvious that the majority of claim settlement goes in the category of Endowment Plans but not in Term Insurance. TATA AIA is one of the most demanded insurance companies over the year, and the performance of TATA AIA indicates why it is in high demand. The dedication towards customers is just impressive, and this is what we expect from an insurance company or with an insurance policy.
It’s thus extremely essential to check the claim settlement amount along with the claim settlement ratio that will help you to give a fair idea about the inclination of the insurance company towards the settlement of the claims. CSR report helps you to figure out the best insurance company and best policy for you or your family.
Hi
I am working in the banking sector or earning 7-8 lacs per annum. Please suggest a term insurance plan. I searched about Hdfc life and also Icici i protect. Here both seems to be offering the same thing but Hdfc looks little cheap. How much would you suggest me to go with (1cr or 1.5cr) with Icici or hdfc,
Don’t need critical illness plan.
My suggestion to go with ICICI Pru….Services are very good smooth in all parametres.
Hi,
I am self employed. How can we check only Term Insurance claim settlement Ratio.
Witch trumplan best for hdfc and Tata aia my age 44 and trim plan for 50 lac required
kotak e term plan best sevices and good claim ratio more details