Claim Settlement Ratio is probably the most important factor while buying insurance. This becomes even more critical for Life Insurance as you would like your dependents to run pillar to post to claim your sum assured in case of unfortunate death. The recently published Insurance Regulatory And Development Authority – IRDA Annual report 2010-11 has the settlement ratio for the following life insurance companies in India.
Click here to check Life Insurance – Death Claim Settlement Ratio – 2011-12
|HDFC Life||Aviva||IDBI Fedral|
|Birla Sunlife||SBI Life||Shriram|
|ICICI Prudential||India First||Sahara|
|ING Life||Tata AIG||Aegon Religare|
|Kotak Mahindra||Reliance Life||DLF Pramerica|
|Bajaj Allianz||Star Union Dai-ichi Life||Future Generali|
|Bharti AXA||Max New York|
Claim Settlement Ratio:
The table below gives the Settlement ratio for the above Life Insurance Companies:
As you can see LIC (Life Insurance Corporation) has the best Claim Settlement Ratio of more than 97% while Future Generali has the worst payout ratio of 50.5%. But before you focus too much on these numbers, here are a few points you need to think about:
Life insurance companies have a very high rate of rejection in the ‘early claims’ – so if there is a claim made within 2 years of taking the policy, there is a far greater chance of it being rejected. So all the companies which have started operation in last five years would obviously have low settlement ratio.
You can read the previous Claim Settlement Ratio for Life Insurance Companies for 2008-09.