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(Precious) Words of Wisdom : "Who is the ideal adviser? A person who likes you but doesn't care about your feelings." ~ Daniel Kahneman

Does the claim settlement record of your insurer inspire confidence?

Despite repeated warnings by the experts, Indians continue to buy life insurance policy to either save tax or as an investment product. Neither of them, as explained numerous times in the past, is a prudent choice (except for a Term policy).

However, there is a rare and tiny minority that is smart enough to appreciate this and is willingly buying insurance for insurance purposes only. For this informed and enlightened tribe, claim settlement ratio is an important decision-making input when making a choice among umpteen insurers.

Claim settlement ratio simply means the percentage of claims settled by an insurance company out of the total claims received by it in a given period. In other words, it indicates the likely chances of money being paid out to the nominees in case of any unfortunate eventuality.

As per IRDA's Annual Report 2012-13, there were 24 insurance companies providing life insurance cover and their claim settlement record for FY 201-13 is as under:



Insurance Company
Total Claims
Claims Settled
Claim Settlement Ratio
Aegon Religare
422
282
66.82%
Aviva
2433
2134
87.71%
Bajaj Allianz
27282
24192
88.67%
Bharati Axa
1046
 936
89.48%
Birla Sunlife
9871
8149
82.55%
Canara HSBC
597
528
88.44%
DLF Pramerica
614
166
27.04%
Edelweiss Tokio
22
10
45.45%
Future Generali
1941
1369
70.53%
HDFC Standard
6253
5988
95.76%
ICICI Prudential
14948
14393
96.29%
IDBI Federal
687
550
80.06%
India First
916
654
71.40%
ING Life
3312
2780
83.94%
Kotak Mahindra
3089
2843
92.04%
LIC
750576
733545
97.73%
Max Life
9051
8531
94.25%
PNB Metlife
2405
2017
83.87%
Reliance Life
21412
18511
86.45%
Sahara
955
809
84.71%
SBI Life
13426
12676
94.41%
Sriram Life
1602
1079
67.35%
Star Union Dai-Ichi
738
662
89.70%
Tata AIA
4884
4125
84.46%

(Insurance companies with 90%+ claim settlement ratio in bold and those less than 80% in red)

Note: It must, however, be mentioned that since private insurance is relatively new to India, the data set is still small. Hence the numbers may not truly reflect the actual claim experience. In next few years, as the data achieves a reasonable size, we would be able to get a more meaningful insight.


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