Top Life Insurance Companies with the Best Claim Settlement Ratio

What is the Claim Settlement Ratio?

In life insurance, the claim settlement ratio shows how many claims a company actually paid out versus how many it got during the year. The claim settlement ratio is published in the annual report by the Insurance Regulatory and Development Authority of India (IRDAI). Here is the formula for the claim settlement ratio:

Claim Settlement Ratio (CSR) = ( Total number of insurance claims settled/ Total number of insurance claims received) X 100

For example, an insurance company settles 9,700 death claims in a financial year against the total claims received of 10,000, then the claim settlement ratio would be 97%.

Why Should You Consider Claim Settlement Ratio?

Here are some important reasons to consider the claim settlement ratio of the insurance company while buying a life insurance plan:

• It reflects the insurer’s credibility and approach towards honouring its commitments to policyholders
• High CSR gives financial assurance to families to rely on the insurance company for support at the time of need.
• Higher CSR implies lower chances of life insurance claim rejections.
• A consistently higher claim settlement ratio of any insurance company helps it earn customer trust.

List of Top Life Insurance Companies with High Claim Settlement Ratio

IRDAI (Insurance Regulatory and Development Authority of India) has published the data related to life insurance claim settlements for the FY 2023-24. The following is the list of life insurance companies with their claim settlement ratio:

Aditya Birla Sunlife Insurance

Aditya Birla Sun Life is a trusted name in the Indian insurance industry known for its digital-savvy, customer-centric approach. They have a track record of consistently high claim settlement ratios over the past few years. They are also known for efficiency in customer service and claims processing.

Axis Max Life Insurance

This leading private insurance company has maintained its claim settlement consistency over the last many years. They stand out for steller operational efficiency, customer service, and instaclaims initiatives to ensure quick and smooth settlement of claims.

HDFC Life Insurance

HDFC Life Insurance is a benchmark for efficiency and trust with a consistently high claim settlement ratio. Their non-investigative claims (settled in a day), simplified claim process, and optimal customer satisfaction are the main highlights that reflect their strong reliability.

Bajaj Allianz Life Insurance

Bajaj Allianz Life is a leading private insurer known for consistently strong claim settlement ratios, operational effectiveness, and speedy service. Their rapid claim response, user-friendly digital claim tools and fast-track payouts make them strongly reliable.

When it comes to the number of claims received and settled, LIC of India and SBI Life Insurance top the list with the highest number of claims being received and settled. The ease with which they have handled the claims volume and still maintained a consistently strong claim settlement ratio makes them the most reliable insurance brands.

Apart from the claim settlement ratio, you must also consider the following factors while checking an insurance company’s credibility and reliability:

• Consistency in the claim settlement ratio: Consistency indicates a dependable approach towards servicing the customer with highly efficient claim settlement.
• Volume of claims settled: Insurance companies having a high claim settlement ratio with a small number of claims may not be as reassuring as the insurance company that has handled a higher number of claims with strong CSR. For example, LIC of India has received total claims of a whopping 8,29,318 in the FY 2023-24 and settled 7,99,612, reflecting the strong CSR.
• Ease of claim process: This shows insurers’ efficiency and effectiveness in settling the claims, making it easy for the claimant.
• Turnaround time: This reflects the speed with which the claims are processed.
• Claim amounts settled: This indicates the amount of claims handled and effectively settled, helping you to understand how the insurer handles both small-value and large-value claims.

At Jio Insurance Broking, you can compare life insurance policies from the various insurance companies, compare them based on claim settlement ratio, brand reputation, customer service, policy features, cost and more. The platform helps you make an informed decision based on comparison shopping.

Conclusion

To conclude, buying adequate life insurance coverage is an absolute necessity. Choosing the right policy that suits your needs and the insurance company requires you to look at factors like consistency in claim settlement ratio, customer service, features, premiums and additional benefits. The claim settlement ratio, which reflects the insurer’s credibility, is an important factor in determining trustworthiness in settling claims, as it is non-negotiable for placing your best bet on future financial security.