How much time it takes to settle life insurance claim?

In the last post I wrote about the Claim Settlement rate for Indian life insurance companies. This time I wanted to check how much time Life Insurance companies take to settle a claim!

Claim settlement time also becomes an important factor in choosing any life insurance as you don’t want your survivors to wait indefinitely or run pillar to post to claim the insurance money, but obviously I would place time taken to settlement of claim second to actual claim settlement ratio.

Below is the table showing the percentage claim settled in terms of number and value in 30 days, 60 days and so on.

The winner here is Reliance Life with more than 90% of claims settled within a month of claims made, which is awesome considering other companies. On the other hand LIC is able to settle only 60% of claims within a month which needs improvement.

Within 30 Days of intimation 31 – 90 Days 91 – 180 Days 181 Days – 1 Year More than a Year Total Settlement
# of Policies  Benefit Amount  # of Policies Benefit Amount  # of Policies Benefit Amount  # of Policies Benefit Amount  # of Policies Benefit Amount  # of Policies Benefit Amount
Reliance Life 96% 92% 2% 5% 1% 2% 0% 1% 0% 1% 3,204 35
Canara HSBC 60% 70% 40% 30% 0% 0% 0% 0% 0% 0% 5 0
Aviva 66% 63% 18% 20% 10% 11% 4% 4% 2% 1% 1,032 22
ICICI Pru 78% 62% 14% 22% 6% 13% 2% 3% 0% 0% 9,298 102
LIC 60% 60% 20% 20% 12% 12% 7% 7% 1% 1% 5,64,389 4,165
Birla Sunlife 71% 58% 26% 37% 3% 3% 0% 1% 0% 1% 2,457 59
Bajaj Allianz 53% 46% 37% 42% 8% 10% 1% 1% 1% 0% 10,484 174
SBI Life 54% 45% 30% 34% 12% 16% 3% 4% 1% 1% 3,262 47
Metlife 43% 38% 31% 30% 19% 20% 5% 11% 2% 1% 422 17
Kotak Mahindra 39% 35% 32% 36% 25% 25% 3% 3% 1% 1% 1,002 16
Tata AIG 49% 34% 45% 53% 5% 12% 0% 0% 1% 0% 1,652 28
IDBI Fortis 25% 32% 58% 42% 17% 26% 0% 0% 0% 0% 12 0
HDFC Std 48% 23% 30% 38% 14% 22% 7% 13% 2% 3% 2,549 38
Shriram 22% 19% 44% 42% 24% 22% 8% 15% 1% 2% 312 4
ING Vysya 18% 15% 36% 42% 29% 33% 14% 9% 3% 0% 1,180 17
Bharti AXA 22% 15% 51% 54% 26% 31% 1% 1% 0% 0% 108 3
Max new York Life 9% 13% 59% 58% 22% 22% 8% 6% 1% 1% 3,545 67
Future Generalli 12% 11% 65% 56% 24% 32% 0% 0% 0% 0% 17 1
Sahara 1% 1% 6% 11% 15% 13% 44% 41% 34% 35% 198 2
Aegon Religare  No Claim settlement in 2008 – 09
 DLF Pramerica Not Available in 2008 – 09
 Star Union  Not Available in 2008 – 09
All Private 57% 46% 29% 37% 10% 13% 3% 4% 1% 1% 40,739 633
Industry Total 60% 58% 20% 22% 12% 12% 7% 7% 1% 1% 6,05,128 4,798

One thought on “How much time it takes to settle life insurance claim?

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