Life Insurance Corporation (LIC) of India is the only public sector life insurance company headquartered in Mumbai. It is the largest insurance company in India with the backing of Govt. of India. The state-owned life insurance firm offers a variety of insurance products to its customers such as insurance plans, pension plans, unit-linked plans, special plans and group schemes. With the passage of the Life Insurance of India Act of the Parliament of India, LIC was founded in 1956. Life Insurance Corporation of India holds 250 million lives, which are insured with LIC. LIC Claim Settlement Ratio for the Financial Year 2019-20 is 96.69%.
Table Content
CSR Details of LIC India for the Financial Year 2019-20
The latest Claim Settlement Ratio for the Financial Year 2019-20 is 96.69%.
| Life Insurer | Claims Rejection (FY 2019-20) | Claims Intimated (FY 2018-19) | Total Claims (Claims Pending + Claims Intimated) | CSR% (FY 2018-19) | CSR% (FY 2019-20) |
|---|---|---|---|---|---|
| LIC | 0.81% | 758916 | NA | 97.79% | 96.69% |
- The claim settlement ratio of 96.69% is the indicator of the number of death claims settled by LIC against the total claims 758916 reported for the FY 2019-20.
- Rs 12871.92 Crores of amount has been paid as the claim amount against 734328 claims reported in the FY 2018-19 by LIC.
- The claims have been rejected, resulting in Claim Repudiation of 0.81% for the FY 2019-20.
How Claim Settlement Ratio (CSR) is measured?
The Claim Settlement Ratio is expressed as the number of claims settled divided by the total number of claims reported in a given financial year, including the claims outstanding at the beginning of the financial year. The claim settlement ratio is expressed in percentage which is helpful for comparing the claim settlement data by the customer across insurers. LIC claim settlement ratio is calculated for every 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) |
Past 5 years CSR Trends for LIC India
Consistency of the CSR year on year is an ideal way to give preference to the insurance company. Consistency to maintain a higher claim settlement ratio is considered to be good. Past claims settlement ratio trends will reveal the consistency and inclination of the LIC India towards settlement of death claims.
| Financial Year | Claim Settlement Ratio (%) |
|---|---|
| 2015-16 | 98.33% |
| 2016-17 | 98.31% |
| 2017-18 | 98.04% |
| 2018-19 | 97.79% |
| 2019-20 | 96.69% |
Rank in Claim Settlement among other Life Insurers
It signifies the position where LIC lies, in respect to other life insurers in the industry from the financial year 2015-16 to 2019-20. This rank is based on the claim settlement percentage attained by LIC in the respective financial years.
