Latest IRDA Claim Settlement Ratio 2022 – Life, Health, Term, Motor, Fire, and Marine Insurance
The latest IRDA claim settlement ratio provides valuable insights into the performance of insurance companies across various sectors, including life insurance, health insurance, term insurance, motor insurance, fire insurance, and marine insurance. The ratio reflects the company’s ability to settle claims in a timely and efficient manner, making it an important factor to consider when choosing an insurance provider.
In this article, we’ll take a closer look at the latest IRDA claim settlement ratio 2022 for companies such as LIC, HDFC Life, Max Bupa, Star Health, and many more.
Consider reading: 7 Types of Life Insurance Plans in India
Page Contents
Latest IRDA Claim Settlement Ratio 2022 – Life Insurance Death Claims
The below table shows the latest IRDA Claim Settlement Ratio 2022 for Life insurance death claims:
Insurance Company | No of Policies | Claim amount in CR | Claims settlement ratio as % of policies | Claims settlement ratio as % of the amount | Claims rejection ratio as % of policies | Claims rejection ratio as % of the amount |
---|---|---|---|---|---|---|
LIC India | 933889 | 18295 | 98.62% | 95.76% | 0.69% | 1.45% |
Aditya Birla Sunlife | 6455 | 468.85 | 98.04% | 93.15% | 1.79% | 6.08% |
Aegon | 398 | 105.98 | 99.25% | 98.64% | 0.75% | 1.36% |
Ageas Federal | 1716 | 73.85 | 95.07% | 83.63% | 2.11% | 8.73% |
Aviva | 1034 | 111.57 | 98.01% | 95.24% | 1.99% | 4.76% |
Bajaj Allianz | 14115 | 410.68 | 98.48% | 91.97% | 1.49% | 7.20% |
Bharti Axa | 1875 | 106.04 | 99.05% | 98.55% | 0.95% | 1.45% |
Canara HSBC OBC | 1844 | 156.08 | 97.10% | 92.61% | 1.58% | 3.91% |
Edelweiss Tokio | 487 | 45.83 | 97.01% | 87.98% | 2.59% | 6.26% |
Exide | 4978 | 170.43 | 98.54% | 93.28% | 0.22% | 1.91% |
Future Generali | 1163 | 48.11 | 94.86% | 86.24% | 4.49% | 8.89% |
HDFC Life | 16639 | 1037.23 | 98.01% | 80.06% | 0.49% | 3.09% |
ICICI Pru Life | 14518 | 1504.64 | 97.90% | 89.20% | 1.95% | 10.32% |
India First | 2886 | 109.64 | 96.81% | 91.16% | 2.68% | 5.50% |
Kotak Mahindra | 4336 | 299.92 | 98.50% | 95.47% | 1.14% | 2.21% |
Max Life | 19922 | 885.57 | 99.35% | 95.42% | 0.64% | 4.53% |
PNB Metlife | 5218 | 331.7 | 98.17% | 93.92% | 1.83% | 6.08% |
Pramerica Life | 638 | 28.63 | 98.61% | 97.01% | 1.24% | 2.28% |
Reliance Nippon | 9274 | 205.26 | 98.49% | 95.03% | 1.47% | 4.28% |
Sahara Life | 860 | 9.02 | 97.18% | 97.47% | 1.81% | 2.27% |
SBI Life | 31855 | 1398.7 | 93.09% | 86.22% | 3.80% | 6.41% |
Shriram Life | 3506 | 95.81 | 95.12% | 77.48% | 3.72% | 15.14% |
Star Union | 1569 | 72.49 | 95.96% | 92.79% | 3.55% | 5.91% |
Tata AIA | 4556 | 478.4 | 98.02% | 87.57% | 1.94% | 11.63% |
Data source – IRDA annual report
What is Claim Settlement Ratio?
In India, the claim settlement ratio is a measure of the number of insurance claims that an insurer has settled for policyholders during a given period, expressed as a percentage of the total number of claims received during that period.
It is an important indicator of an insurance company’s performance, as it reflects the insurer’s ability to promptly and fairly resolve claims made by policyholders.
A higher claim settlement ratio indicates that the insurer is more likely to settle claims made by policyholders, while a lower claim settlement ratio may suggest that the insurer is more likely to deny or delay the settlement of claims.
The claim settlement ratio can vary significantly among different insurers, and policyholders should consider it when choosing an insurance policy.
It is important to note that the claim settlement ratio is not the only factor to consider when selecting an insurance policy. Other factors, such as the policy’s coverage, exclusions, and premiums, should also be taken into account.
Key Insights of IRDA Claim Settlement Ratio 2022
Key highlights from the IRDA Claim Settlement Ratio 2022 data:
- LIC India’s Claim Settlement Ratio in 2022 was 98.62%
- Aegon had the highest Claim Settlement Ratio in 2022 with 99.25% (in terms of the number of policies) but you should note that the number of claims was very less.
- SBI Life has the lowest Claim Settlement Ratio in 2022 with 93.09% (in terms of the number of policies) but you should note that the no of claims was very high.
- Aegon had the highest Claim Settlement Ratio in 2022 with 98.64% (in terms of the number of the claim amount ) but you should note that the claim amount was very less.
- Shriram Life had the lowest Claim Settlement Ratio in 2022 with 77.48% (in terms of the number of claim amounts) but you should note that the claim amount was less than the average claim amount of other insurers.
Above claim settlement, ratio data is a key decision-making point for most customers while buying a life insurance policy. But please make sure you not only look at the claim settlement ratio in isolation.
You must look at how big the insurance company is and how many policy claims they have settled.
The above data factors in all types of life insurance such as Term insurance, Endowment policies, ULIPs, etc.
Consider reading: ULIP – Unit Linked Insurance Plans and Types in 2023
Comparison between LIC vs Private insurer’s Claim Settlement Ratio in 2022
Here is a key comparison of LIC vs Private insurer’s Claim Settlement Ratio in 2022:
Data source – IRDA annual report
Key highlights from the above data:
- LIC India has settled 9,33,889 death claims as compared to 1,49,734 death claim settlements by all private insurers. That means LIC has settled at least 6 times more claims than all the private insurers put together.
- LIC has paid INR 18,295 crore toward death claim settlements whereas all the private insurers put together have paid only INR 8,126 crore. That means LIC has paid more than twice in claim settlement in comparison to the amount paid by all the private insurers put together.
From the above data, it is clear that LIC India is the undisputed leader in the Indian insurance market and it has a high reputation when it comes to settling claims.
Many people blame LIC and its policies but most of the time the reason is they bought a LIC policy without understanding its purpose.
LIC Term insurance policies are great and looking at the above data it may be the best policy that someone can buy for their life protection.
A glimpse of all claims handled by all the insurance companies in India:
Few important points from the above data:
- LIC’s death claim settlement amount is less than 10% of the total maturity amount.
- All other private companies’ death claim settlement amount is more than 10% of the total maturity amount.
- Interestingly, For private insurance companies – The surrender/withdrawal value is more than the normal maturity value. This means customers are surrendering/withdrawing their money before the maturity period.
Again, LIC handled more claims( Maturity + death claims) which is more than double all private insurance companies put together!
Consider reading: 5 Best Term Insurance Plans in India
COVID Claim Settlement by Insurance Companies in India
The year 2020 and 2021 was hugely affected by COVID all over the world and India was no exception. IRDA has published specific data for COVID-related death claims as below:
There were only 21836 COVID death claims submitted out of which 21304 claims are already settled.
Health Insurance Claim Settlement Ratio 2022
The below table shows the latest IRDA Claim Settlement Ratio 2022 for Health insurance claims:
Insurance Company | Claim Settlement Ratio 2019-20 | Claim Settlement Ratio 2020-21 |
---|---|---|
Acko General Insurance Ltd. | 21.08% | 84.64% |
Bajaj Allianz General Insurance Co. Ltd. | 81.96% | 77.31% |
Bharti AXA General Insurance Co. Ltd. | 77.50% | 65.37% |
Cholamandalam MS General Insurance Co. Ltd | 40.67% | 77.35% |
Edelweiss General Insurance Co. Ltd. | 113.05% | 111.57% |
Future Generali India Insurance C. Ltd. | 62.52% | 90.04% |
GO Digit General Insurance Ltd. | 51.83% | 63.80% |
HDFC ERGO General Insurance co. Ltd. | 69.01% | 79.30% |
ICICI Lombard General Insurance Co. Ltd. | 69.90% | 78.00% |
IFFCO Tokio General Insurance Co. Ltd. | 95.66% | 99.49% |
Kotak Mahindra General Insurance Co. Ltd. | 49.22% | 55.17% |
Liberty General Insurance Ltd. | 87.78% | 76.98% |
Magma HDI General Insurance Co. Ltd. | 72.87% | 62.70% |
Navi General Insurance Ltd. | 34.69% | 26.78% |
Raheja QBE General Insurance Co. Ltd. | 85.07% | 97.22% |
Reliance General Insurance Co. Ltd. | 89.36% | 93.96% |
Royal Sundaram General Insurance Co. Ltd | 63.55% | 67.88% |
SBI General Insurance Co. Ltd. | 50.54% | 60.72% |
Shriram General Insurance Co. Ltd. | 96.64% | 4.84% |
Tata AIG General Insurance Co. Ltd. | 66.61% | 67.27% |
Universal Sompo General Insurance Co. Ltd. | 76.68% | 111.23% |
National Insurance Co. Ltd. | 103.30% | 101.09% |
The New India Assurance Co. Ltd. | 100.83% | 92.79% |
The Oriental Insurance Co. Ltd. | 104.97% | 112.51% |
United India Insurance Co. Ltd. | 104.24% | 106.04% |
Stand-alone Health Insurers Aditya Bifla Health insurance Co. Ltd. | 49.08% | 49.99% |
Care Health Insurance Ltd. | 59.13% | 55.15% |
HDFC ERGO Health Insurance Co. Ltd.* | 73.69% | NA |
ManipalCigna Health Insurance Co. Ltd. | 61.64% | 61.13% |
Max Bupa Health Insurance Co. Ltd. | 53.51% | 56.09% |
Reliance Health Insurance Ltd. | 62.17% | 45.68% |
Star Health and Allied Insurance Co. Ltd | 65.91% | 94.44% |
Key Highlights from the above data of Health insurance claim settlement ratio:
- All the public sector health insurance companies like The New India Assurance Co. Ltd., National Insurance Co. Ltd., The Oriental Insurance Co. Ltd., and United India Insurance Co. Ltd. have a claim settlement ratio of more than 100%.
- The only private-sector health insurance company which has a claim settlement ratio of more than 100% is Edelweiss General Insurance Co. Ltd. The next best is IFFCO Tokio General Insurance Co. Ltd.
Some of the public sector health insurance companies have impressive claim settlement rations they are also big companies dealing with a large number of customers. Some private insurance companies have good claim settlement ratios.
Please select a company that has less wait time for existing diseases and has a good claim settlement ratio.
Motor Insurance Claim Settlement Ratio 2022
The below table shows the latest IRDA Claim Settlement Ratio 2022 for Motor vehicle insurance claims:
Insurance Company | 2019-20 | 2020-21 |
---|---|---|
Acko General Insurance Ltd. | 97.58 | 82.35 |
Bajaj Allianz General Insurance Co. Ltd. | 65.83 | 68.06 |
Bharti A)(A General Insurance Co. Ltd. | 81.19 | 64.27 |
Cholamandalam MS General Insurance Co. Ltd | 82.95 | 74.3 |
Edelweiss General Insurance Co. Ltd. | 116.31 | 93.38 |
Future Generali India Insurance C. Ltd. | 57.67 | 66.13 |
GO Digit General Insurance Ltd. | 74.82 | 74.91 |
HDFC ERGO General Insurance co. Ltd. | 79.21 | 70.02 |
ICICI Lombard General Insurance Co. Ltd. | 76.53 | 65.77 |
IFFCO Tokio General Insurance Co. Ltd. | 87.77 | 84.04 |
Kotak Mahindra General Insurance Co. Ltd. | 75.66 | 74.64 |
Liberty General Insurance Ltd. | 70.95 | 59.91 |
Magma HDI General Insurance Co. Ltd. | 85.13 | 78.91 |
Navi General Insurance Ltd. | 150.69 | 82.91 |
Raheja QBE General Insurance Co. Ltd. | 103.9 | 100.51 |
Reliance General Insurance Co. Ltd. | 84.63 | 76.89 |
Royal Sundaram General Insurance Co. Ltd | 92.23 | 87.89 |
SBI General Insurance Co. Ltd. | 92.05 | 86.1 |
Shriram General Insurance Co. Ltd. | 65.43 | 79.43 |
Tata AIG General Insurance Co. Ltd. | 80.29 | 75.41 |
Universal Sompo General Insurance Co. Ltd. | 89.54 | 87.96 |
National Insurance Co. Ltd. | 116.44 | 78.55 |
The New India Assurance Co. Ltd. | 85.35 | 78.2 |
The Oriental Insurance Co. Ltd. | 101.63 | 81.83 |
United India Insurance Co. Ltd. | 96.45 | 77.17 |
The above figures are in percentage.
Key Highlights from the above data of Motor insurance claim settlement ratio:
- Only Raheja QBE General Insurance Co. Ltd. has had more than a 100% claim settlement ratio in the past. 2 years. The thing to note here is that the Motor insurance base for the company is very low.
- Among the public sector insurance companies, Oriental Insurance Co. Ltd. and National Insurance Co. Ltd. has good claim settlement ratio.
Car Insurance / Motor insurance is a highly competitive business for insurance companies. For your car insurance needs, please select a company that has a good claim settlement ratio and allows multiple claims in a year.
Marine Insurance Claims Settlement Ratio 2022
The below table shows the latest IRDA Claim Settlement Ratio 2022 for Marine insurance claims:
Insurance Company | 2019-20 | 2020-21 |
---|---|---|
Acko General Insurance Ltd. | 0 | 0 |
Bajaj Allianz General Insurance Co. Ltd. | 67.15 | 65.86 |
Bharti A)(A General Insurance Co. Ltd. | 116.1 | 83.11 |
Cholamandalam MS General Insurance Co. Ltd | 57.63 | 73.52 |
Edelweiss General Insurance Co. Ltd. | -81.99 | 1933.33 |
Future Generali India Insurance C. Ltd. | 58.63 | 85.17 |
GO Digit General Insurance Ltd. | 50.34 | 130.68 |
HDFC ERGO General Insurance co. Ltd. | 81.73 | 90.11 |
ICICI Lombard General Insurance Co. Ltd. | 65.26 | 83.34 |
IFFCO Tokio General Insurance Co. Ltd. | 63.93 | 68.12 |
Kotak Mahindra General Insurance Co. Ltd. | 0 | -466.67 |
Liberty General Insurance Ltd. | 5937 | 67.18 |
Magma HDI General Insurance Co. Ltd. | 174.31 | 479.27 |
Navi General Insurance Ltd. | 0 | 0 |
Raheja QBE General Insurance Co. Ltd. | -20.2 | 23.81 |
Reliance General Insurance Co. Ltd. | 10941 | 133.36 |
Royal Sundaram General Insurance Co. Ltd | 58.97 | 47.71 |
SBI General Insurance Co. Ltd. | 72.18 | 133.49 |
Shriram General Insurance Co. Ltd. | -21.37 | -27.78 |
Tata AIG General Insurance Co. Ltd. | 73.92 | 78.31 |
Universal Sompo General Insurance Co. Ltd. | 56.08 | 105.36 |
Insurers National Insurance Co. Ltd. | 50.43 | 74.25 |
The New India Assurance Co. Ltd. | 68.04 | 73.53 |
The Oriental Insurance Co. Ltd. | 96.94 | 77 |
United India Insurance Co. Ltd. | 68.29 | 49.94 |
The above figures are in percentage.
As you can see from the above table Marine insurance is a very unpredictable business for insurance companies. There are figures in negative which mean that there was a claim reversal in this period.
Fire Insurance Claim Settlement Ratio 2022
The below table shows the latest IRDA Claim Settlement Ratio 2022 for Fire insurance claims:
Insurance Company | 2019-20 | 2020-21 |
---|---|---|
Acko General Insurance Ltd. | 0 | 95.92 |
Bajaj Allianz General Insurance Co. Ltd. | 68.01 | 54.46 |
Bharti A)(A General Insurance Co. Ltd. | 75.21 | 87.35 |
Cholamandalam MS General Insurance Co. Ltd | 42.28 | 33.82 |
Edelweiss General Insurance Co. Ltd. | 120.61 | 135.23 |
Future Generali India Insurance C. Ltd. | 53.23 | 59.62 |
GO Digit General Insurance Ltd. | 78.11 | 58.25 |
HDFC ERGO General Insurance co. Ltd. | 69.99 | 74.78 |
ICICI Lombard General Insurance Co. Ltd. | 64.02 | 63.74 |
IFFCO Tokio General Insurance Co. Ltd. | 45.67 | 62.37 |
Kotak Mahindra General Insurance Co. Ltd. | 80.99 | 54.84 |
Liberty General Insurance Ltd. | 2.05 | 66.64 |
Magma HDI General Insurance Co. Ltd. | 70.86 | 91.55 |
Navi General Insurance Ltd. | -13.39 | 15.59 |
Raheja QBE General Insurance Co. Ltd. | 37 | 31.8 |
Reliance General Insurance Co. Ltd. | 37.35 | 55.94 |
Royal Sundaram General Insurance Co. Ltd | 52.46 | 60.47 |
SBI General Insurance Co. Ltd. | 55.36 | 53.42 |
Shriram General Insurance Co. Ltd. | 4.56 | 46.86 |
Tata AIG General Insurance Co. Ltd. | 61.52 | 39.4 |
Universal Sompo General Insurance Co. Ltd. | 42.33 | 57.41 |
Public Sector Insurers National Insurance Co. Ltd. | 77.11 | 71.31 |
The New India Assurance Co. Ltd. | 76.13 | 74.07 |
The Oriental Insurance Co. Ltd. | 79.55 | 53.64 |
United India Insurance Co. Ltd. | 130.09 | 58.4 |
The above figures are in percentage.
Like Marine insurance, Fire insurance is also unpredictable. Looking at the above data, Edelweiss General Insurance Co. Ltd. has a good claim settlement ratio for fire insurance.
Conclusion on the Latest IRDA Claim Settlement Ratio 2022
In wrapping up, the significance of the Claim Settlement Ratio (CSR) in the insurance world cannot be overstated.
This straightforward yet telling metric can be an invaluable guide when it comes to selecting an insurance provider. Remember, a high CSR signifies an insurer’s commitment to their policyholders and their consistency in settling claims, and these are key markers of reliability.
However, it is important not to make it the only determining factor. Other elements like the terms of the policy, customer service, premium rates, and financial strength of the company should also be taken into account.
In the end, understanding CSR empowers us as consumers, enabling us to make informed decisions when navigating the often murky waters of insurance policies.
Use this knowledge wisely, and may your journey toward securing your future be a smoother one.
How Claim Settlement Ratio is Calculated?
The claim settlement ratio is calculated by dividing the total number of claims settled by the insurer during a given period by the total number of claims received during that period and then expressing the result as a percentage.
For example, if an insurer receives 1,000 claims and settles 870 of them during a given year, the claim settlement ratio would be calculated as follows:
Claim settlement ratio = (870 claims settled / 1,000 claims received) x 100% = 87%
In this example, the claim settlement ratio would be 87%, indicating that the insurer has settled 87% of the claims it received during the year.
FAQs on Claim Settlement Ratio
What is a good claim settlement ratio?
A high claim settlement ratio is generally considered to be a good indicator of an insurance company’s financial stability and reliability. A claim settlement ratio of 90% or higher is generally considered to be good.
What factors affect the claim settlement ratio?
There are several factors that can affect an insurance company’s claim settlement ratio, including the complexity of the claims, the number of claims received the company’s financial stability, and the company’s claims-handling processes.
Can the claim settlement ratio vary by insurance policy type?
Yes, the claim settlement ratio can vary by insurance policy type. For example, an insurance company may have a higher claim settlement ratio for life insurance policies compared to car insurance policies.
Is the claim settlement ratio the only factor to consider when choosing an insurance company?
No, the claim settlement ratio is just one factor to consider when choosing an insurance company. Other factors to consider include the company’s financial stability, the coverage and exclusions in the policy, the premium cost, and the customer service provided. It is important to consider a range of factors and do your research before making a decision on an insurance policy.
Is a high claims ratio good?
Yes, a high claims-paid ratio is good. It indicates that the insurer is committed to policyholders and has a reliable risk management system in place to handle claims efficiently. A high claims-paid ratio is a positive indicator of the insurer’s financial strength and ability to meet its obligations.
What is the claim settlement ratio in simple words?
In simple terms, an insurance company’s claim settlement ratio (CSR) is the percentage of claims resolved successfully out of the total number of requests received in a year. For example, if XYZ company handles 100 claims in a year and resolves 90 of them, its CSR would be 90%. The CSR reflects the insurer’s ability to honor policyholders’ claims.