Unveiling the 2024 Claim Settlement Ratios: A Comprehensive Insight into Life Insurance Companies in India

Ensuring the financial security of our loved ones is the primary motive behind purchasing a life insurance policy. To gauge the reliability of an insurance company in honoring policyholders’ claims, understanding the claim settlement ratio becomes paramount. The Insurance Regulatory and Development Authority of India (IRDAI) has recently disclosed the claim settlement ratios for the fiscal year 2022-23, shedding light on the performance of life insurance companies in India.

Claim Settlement Ratio: A Crucial Metric for Policyholders

The claim settlement ratio is the percentage of claims paid out by an insurer against the total number of outstanding claims in a financial year. As a general rule, a higher claim settlement ratio signifies a more dependable insurer. Therefore, potential policyholders are advised to scrutinize this ratio along with other factors like premium amounts and coverage before investing in a life insurance policy.

IRDAI Releases 2022-23 Claim Settlement Ratios

According to the recently released data by IRDAI, the individual death claim settlement ratio for the life insurance industry was an impressive 98.45% in the fiscal year 2022-23. This denotes that over 98% of individual death claim requests were successfully settled during this period, with an overall claim settlement ratio of 98.64%.

Top Performers in Claim Settlement Ratio by Number

When it comes to the number of policies settled in the same fiscal year, Max Life Insurance secured the top spot with an outstanding claim settlement ratio of 99.51%. Following closely, HDFC Life Insurance claimed the second position with a commendable ratio of 99.39%, and Aegon Life Insurance secured the third position with a ratio of 99.37%.

Claim settlement ratio of life insurance companies 2024 (in terms of numbers)

Total Claims
Claims paid
Claims Repudiated
Insurance CompanyNumber of PoliciesNumber of Policies% of Total ClaimsNumber of Policies% of Total Claims
Max Life
19659
19563
99.51%
96
0.49%
HDFC Life
17558
17451
99.39%
103
0.59%
Aegon
316
314
99.37%
2
0.63%
Edelweiss Tokio
500
496
99.20%
4
0.80%
Bharti Axa
2116
2097
99.10%
19
0.90%
PNB Met Life
5292
5242
99.06%
48
0.91%
Bajaj Allianz
15502
15353
99.04%
145
0.94%
Tata AIA
5475
5421
99.01%
53
0.97%
Canara HSBC OBC
2119
2098
99.01%
19
0.90%
Pramerica Life
753
744
98.80%
8
1.06%
Aviva
803
793
98.75%
10
1.25%
Reliance Nippon
8759
8635
98.58%
122
1.39%
LIC
922207
908576
98.52%
8003
0.87%
Kotak Mahindra
4333
4257
98.25%
65
1.50%
Aditya Birla Sun Life
6314
6195
98.12%
119
1.88%
Sahara
657
643
97.87%
7
1.07%
Shriram
4003
3899
97.40%
86
2.15%
SBI Life
36896
35807
97.05%
1007
2.73%
India First
3147
3054
97.04%
83
2.64%
Exide Life
2143
2063
96.27%
30
1.40%
Star Union
1806
1735
96.07%
68
3.77%
Ageas Federal
1445
1388
96.06%
45
3.11%
ICICI Prudential
14333
13656
95.28%
638
4.45%
Future Generali
988
939
95.04%
49
4.96%
Private Sector Total
154917
151843
98.02%
2826
1.82%
Grand Total
1077124
1060419
98.45%
10829
1.01%

Source: IRDAI

LIC’s Dominance and Claims Repudiated Ratio

LIC, the leading life insurance company, alone settled over 9.22 lakh claims during 2022-23, showcasing its significant role in the industry. Meanwhile, the private insurance sector collectively paid 1.54 lakh claims during the same period. The claims repudiated ratio, indicating the number of claims deemed invalid, plays a crucial role. It serves as a measure of efficiency, with a near 100% ratio showcasing the insurer’s effectiveness in settling claims.

Claim Paid Ratio by Amount: An Essential Metric

The claim paid ratio by amount reveals the percentage of the total claim value that an insurance company disburses. A higher ratio suggests a more transparent and efficient payout process. In this aspect, Aegon Life Insurance stood out with a remarkable 99.37% claim settlement ratio by amount. Aviva Life Insurance and Bharti Axa Life Insurance followed suit with ratios of 98.74% and 98.09%, respectively.

Claim settlement ratio of life insurance companies 2024 (by amount)


Total Claims
Claims paid
Insurance CompanyBenefit Amount (₹crore)
Benefit Amount (₹crore)
Claim paid ratio
Aegon
86.69
86.14
99.37%
Aviva
98.85
97.60
98.74%
Bharti Axa
150.73
147.85
98.09%
Pramerica Life
30.59
29.82
97.50%
HDFC Life
1440.20
1389.90
96.51%
Sahara
5.50
5.31
96.49%
Canara HSBC OBC
193.76
186.19
96.09%
PNB Met Life
425.34
407.33
95.77%
LIC
19327.63
18397.77
95.19%
SBI Life
1766.28
1676.95
94.94%
Max Life
1312.47
1242.15
94.64%
Tata AIA
821.70
776.70
94.52%
Bajaj Allianz
639.80
603.03
94.25%
Kotak Mahindra
341.83
320.92
93.88%
Edelweiss Tokio
63.05
59.02
93.61%
Star Union
121.33
113.46
93.51%
Reliance Nippon
219.26
204.06
93.07%
Aditya Birla Sun Life
496.96
458.32
92.23%
India First
173.40
159.81
92.17%
ICICI Prudential
2142.35
1949.70
91.01%
Ageas Federal
67.47
61.05
90.48%
Exide Life
114.33
100.52
87.92%
Future Generali
41.05
32.81
79.94%
Shriram
141.05
109.49
77.63%
Private Sector Total
10893.98
10218.15
93.80%
Grand Total
30221.61
28615.92
94.69%

Source: IRDAI

Guidance for Policyholders

Sanjiv Bajaj, Jt. Chairman & MD of Bajaj Capital, emphasizes the importance of considering both the claim settlement ratio by number and the claim paid ratio by amount to assess an insurer’s overall claim-paying ability. This holistic approach provides policyholders with a comprehensive understanding of what to expect when filing a claim.

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