claim settlement ratio 121 views October 30, 2020

What is the Claim Settlement Ratio of LIC and Private Life Insurers?

Life is full of uncertainties among which death can come anytime. In the case of unfortunate death, you wouldn’t want to see your family struggle financially. That’s why individuals choose a Life Insurance Policy from LIC or private life insurers. With a Life Insurance Policy, individuals want to secure the future of their family. But would you like to choose the company that is more likely to reject your claim after your death? You surely wouldn’t want this. For this, it is important to know which insurer has a good track record when it comes to the settlement of Death Claims.

And how do you do it? Well, that’s where the Claim Settlement Ratio (CSR) comes into the picture. An Insurance Company with a history of high Claim Settlement Ratio will be a suitable option for you if you don’t want your claim to get rejected. Several private Insurers such as HDFC, ICICI Prudential, Max, SBI provide Life Insurance schemes to customers. Other than them, Life Insurance Corporation of India (LIC) is also quite popular among customers.

In this article, we will be talking about the Claim Settlement Ratio of LIC and Private Life Insurers so that you can understand which Insurance Company would be the best for you. We will show you the Claim Ratio trends of these insurance companies over the years and also about their respective claim processes. Keep reading!

What is the Claim Settlement Ratio and Why is it so Important?

Before getting to know the Claim settlement ratio of LIC and Private Life Insurers, it is important to know what exactly this term means. Let’s understand this term in simple words. Claim Settlement Ratio is the share of claims that an insurance company settles out of the total number of claims made in a financial year. The Insurance Regulatory and Development Authority of India (IRDAI) publishes the Claim Settlement Ratio of different Insurance Companies every year on its official website.

Suppose out of 100 claims in a financial year, the insurance company settles 97 claims, the Claim Settlement ratio would be 97%. A higher ratio of a company means the company settles a maximum number of claims, and it is a positive indicator when you are going to choose any insurance company. But never choose a company only because of last year’s settlement ratio. Instead, check its trend for the last few years so that you can have a better idea.

Past 6 Years Trend Regarding the Claim Settlement Ratio of LIC and Private Life Insurers

As we said earlier, how important it is to check the history of Claim Settlement Ratio when choosing the RIGHT Insurance Company for yourself. That’s why, we are giving the past 6-years trend of Claim Ratio of LIC and Top 4 Private Life Insurers – SBI Life Insurance, HDFC Life Insurance, Max Life Insurance, and ICICI Prudential Life Insurance. By looking at this data, you can choose the right insurer. Have a look.

Financial YearClaim Settlement Ratio of Different Life Insurance Companies
LICSBI Life Insurance HDFC Life InsuranceICICI Prudential Life InsuranceMax Life Insurance
2018-201997.79%95.03%99.04%98.58%98.74%
2017-201898.04%96.76%97.80%97.88%98.26%
2016-201798.31%96.69%97.62%96.68%97.81%
2015-201698.33%93.39%95.02%96.20%96.95%
2014-201598.19%89.43%90.50%93.8%96.03%
2013-201498.14%91.06%94.01%94.10%93.86%

From the above table, you can get an idea about how the  has remained close to 98% for the last 6 years, which is slightly better as compared to other private insurers. The total number of claims received by LIC India was 7,69,386 in the financial year 2018-2019 out of which it approved 7,56,399.

There is one other thing that you can see in the above table. Out of 5 insurers, HDFC Life Insurance has the best Claim Settlement ratio in the FY 2018-2019, but its CSR dipped to around 90% in the FY 2014-2015. That is why you should always look at the CSR trend of  Insurance Companies over the years before making the final decision.

How to Get a Claim for Your Life Insurance Policy?

One of the most important things is to know the process to get a Claim for your Life Insurance Policy. Now that you have understood the Claim settlement ratio of LIC and Private Life Insurers, you should understand the process by which you can raise the claim for your life insurance policy. We are showing the claim settlement process for each of them. First, let’s talk about the process of LIC.

Claim Settlement Process of LIC India Insurance Policy

  1. Firstly, the Claimant or Nominee will need to intimate LIC about the claim by sending it a duly filled Claim Intimation Form. This form would consist of information such as Policy Number, Name of Insured, Date of Death, Place of Death, etc. You can visit the LIC’s official website to download this form.
  2. Submit a few required documents such as Death Certificate, Policy Document, Proof of the Age of Life Assured, etc, to LIC along with a Claimant’s statement. Early submission will ensure faster processing.
  3. After receiving the required documents and Claim Intimation form, LIC calculates the amount payable under the policy. All claim payments would be made through Electronic fund transfer.

Claim Settlement Process of HDFC Life Insurance Policy

HDFC Life offers a 3-step process to submit your claim. The steps are Verification of Policy Details and Submission of Life Assured and Nominee Details. We are showing these steps below. Have a look.

  1. Visit the official website of HDFC Life Insurance and go to the ‘Claims’ section.
  2. Here, you will need to submit a few details such as Policy Number, Date of Birth of the Insured, Date of Death, Mobile Number, and PAN Number. After filling in these details, submit the Claimant’s mobile number.
  3. Submit the required documents and your Claim Application Form will be submitted. After this, you can track your claim status on the official website of HDFC Life. As per the IRDAI, your claim will be settled within 30 days of raising a claim.

Other than this method, you can also visit the nearest office of HDFC Life to settle your claim for a Life Insurance Policy.

Claim Settlement Process of ICICI Prudential Life Insurance Policy

With a claim settlement ratio of 97.8% in the financial year 2019-2020, ICICI Prudential Life also offers a pretty easy and convenient process to settle your claim for Life Insurance Policy. We are showing all the needed steps below. Please check!

  1. The first step is the Claim Reporting. Here, you will need to report the claim. A claimant can do it via Online, offline (at branch), at the Central Office, or via ICICI Prudential’s central Claim Care Helpline Number. The claimant can claim even via an SMS or email.
  2. The second step is Claim Processing, during which a dedicated team will assess your claim. In case the company needs any additional documents, it will communicate the same
  3. The last step is Claim Settlement, where you will get your Claim via Electronic Transfer once ICICI Prudential receives all the required documents

Claim Settlement Process of Max Life Insurance Policy

Max Life Insurance Policy holds a 99.22% Claim Settlement Ratio in the Financial year 2019-2020 that indicates its high reliability. Not only does it have a high claim ratio, but it also offers an excellent claim settlement process with which Claimants or Nominees can get claims. Want to know about the process? Check it out below!

  1. You can intimate the claim via Agent Advisor or at Nearest Max Life Insurance Company Office or by email. You can also send the written information to the registered address of Max Life Insurance.
  2. You will need to submit the Claim Intimation Form that you can download it from the ‘Claims’ section on the official website of Max Life. Or you can also get the form at the office.
  3. As per regulations, you will get your claim within 30 days after the insurance company receives all the required documents. You can receive the claim amount as per your chosen mode of transfer.

Claim Settlement Process of SBI Life Insurance Policy

SBI Life offers a hassle-free claim intimation and settlement process so that people can get their claims easily. There are mainly three steps that an individual needs to follow. We are showing them below. Check them out!

  1. The first step is to intimate SBI Life about the claim via Online, Post, Email, or at the nearest branch of the insurer. For this, you will need a Claim Intimation Form and a few details such as Policy Number, Date of Birth, etc.
  2. After the intimation, submit the required documents that you can see in the ‘Claims’ section. The documents for Death Claim and Living Benefits Claim will differ.
  3. Once you submit all the documents, SBI Life will assess your claim and decide accordingly. Once the insurer approves, the claim amount will be transferred to the Claimant’s account via Electronic Funds Transfer.

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