Latest IRDA Claim Settlement Ratio 2022

Based on the Latest IRDA Claim Settlement Ratio released in 2022, Know which are India's Top and Best Insurance Companies for the year 2022

This post was most recently updated on December 24th, 2022

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.

Claim Settlement Ratio
Claim Settlement Ratio

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:

SI No.Insurance CompanyNo of PoliciesClaim amount in CRClaims settlement ratio as % of policiesClaims settlement ratio as % of the amountClaims rejection ratio as % of policiesClaims rejection ratio as % of the amount
1LIC India9338891829598.62%95.76%0.69%1.45%
2Aditya Birla Sunlife6455468.8598.04%93.15%1.79%6.08%
3Aegon398105.9899.25%98.64%0.75%1.36%
4Ageas Federal171673.8595.07%83.63%2.11%8.73%
5Aviva1034111.5798.01%95.24%1.99%4.76%
6Bajaj Allianz14115410.6898.48%91.97%1.49%7.20%
7Bharti Axa1875106.0499.05%98.55%0.95%1.45%
8Canara HSBC OBC1844156.0897.10%92.61%1.58%3.91%
10Edelweiss Tokio48745.8397.01%87.98%2.59%6.26%
11Exide4978170.4398.54%93.28%0.22%1.91%
12Future Generali116348.1194.86%86.24%4.49%8.89%
13HDFC Life166391037.2398.01%80.06%0.49%3.09%
14ICICI Pru Life145181504.6497.90%89.20%1.95%10.32%
15India First2886109.6496.81%91.16%2.68%5.50%
16Kotak Mahindra4336299.9298.50%95.47%1.14%2.21%
17Max Life19922885.5799.35%95.42%0.64%4.53%
18PNB Metlife5218331.798.17%93.92%1.83%6.08%
19Pramerica Life63828.6398.61%97.01%1.24%2.28%
20Reliance Nippon9274205.2698.49%95.03%1.47%4.28%
21Sahara Life8609.0297.18%97.47%1.81%2.27%
22SBI Life318551398.793.09%86.22%3.80%6.41%
23Shriram Life350695.8195.12%77.48%3.72%15.14%
24Star Union156972.4995.96%92.79%3.55%5.91%
25Tata AIA4556478.498.02%87.57%1.94%11.63%
IRDA Claim Settlement Ratio 2022 for Life insurance companies

Data source – IRDA annual report

Key highlights from the IRDA Claim Settlement Ratio 2022 data:

  1. LIC India’s Claim Settlement Ratio in 2022 was 98.62%
  2. 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.
  3. 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.
  4. 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.
  5. 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.

Here is a key comparison of LIC vs Private insurer’s Claim Settlement Ratio in 2022:

LIC vs Private insurers Claim settlement ratio 2022
LIC vs Private insurers Claim settlement ratio 2022

Data source – IRDA annual report

Key highlights from the above data:

  1. 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.
  2. 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:

All Claim settlement by insurance companies
All Claim settlements by insurance companies

Few important points from the above data:

  1. LIC’s death claim settlement amount is less than 10% of the total maturity amount.
  2. All other private companies’ death claim settlement amount is more than 10% of the total maturity amount.
  3. 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!

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:

COVID claim settlement by insurance companies in India
COVID claim settlement by insurance companies in India

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:

Sr NoInsurance CompanyClaim Settlement Ratio 2019-20Claim Settlement Ratio 2020-21
1Acko General Insurance Ltd.21.08%84.64%
2Bajaj Allianz General Insurance Co. Ltd.81.96%77.31%
3Bharti AXA General Insurance Co. Ltd.77.50%65.37%
4Cholamandalam MS General Insurance Co. Ltd40.67%77.35%
5Edelweiss General Insurance Co. Ltd.113.05%111.57%
6Future Generali India Insurance C. Ltd.62.52%90.04%
7GO Digit General Insurance Ltd.51.83%63.80%
8HDFC ERGO General Insurance co. Ltd.69.01%79.30%
9ICICI Lombard General Insurance Co. Ltd.69.90%78.00%
10IFFCO Tokio General Insurance Co. Ltd.95.66%99.49%
11Kotak Mahindra General Insurance Co. Ltd.49.22%55.17%
12Liberty General Insurance Ltd.87.78%76.98%
13Magma HDI General Insurance Co. Ltd.72.87%62.70%
14Navi General Insurance Ltd.34.69%26.78%
15Raheja QBE General Insurance Co. Ltd.85.07%97.22%
16Reliance General Insurance Co. Ltd.89.36%93.96%
17Royal Sundaram General Insurance Co. Ltd63.55%67.88%
18SBI General Insurance Co. Ltd.50.54%60.72%
19Shriram General Insurance Co. Ltd.96.64%4.84%
20Tata AIG General Insurance Co. Ltd.66.61%67.27%
21Universal Sompo General Insurance Co. Ltd.76.68%111.23%
22National Insurance Co. Ltd.103.30%101.09%
23The New India Assurance Co. Ltd.100.83%92.79%
24The Oriental Insurance Co. Ltd.104.97%112.51%
25United India Insurance Co. Ltd.104.24%106.04%
26Stand-alone Health Insurers Aditya Bifla Health insurance Co. Ltd.49.08%49.99%
27Care Health Insurance Ltd.59.13%55.15%
28HDFC ERGO Health Insurance Co. Ltd.*73.69%NA
29ManipalCigna Health Insurance Co. Ltd.61.64%61.13%
30Max Bupa Health Insurance Co. Ltd.53.51%56.09%
31Reliance Health Insurance Ltd.62.17%45.68%
32Star Health and Allied Insurance Co. Ltd65.91%94.44%
IRDA Claim Settlement Ratio 2022 for Health insurance companies

Key Highlights from the above data of Health insurance claim settlement ratio:

  1. 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%.
  2. 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. There are some private insurance companies that 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:

Sr NoInsurance Company2019-202020-21
1Acko General Insurance Ltd.97.5882.35
2Bajaj Allianz General Insurance Co. Ltd.65.8368.06
3Bharti A)(A General Insurance Co. Ltd.81.1964.27
4Cholamandalam MS General Insurance Co. Ltd82.9574.3
5Edelweiss General Insurance Co. Ltd.116.3193.38
6Future Generali India Insurance C. Ltd.57.6766.13
7GO Digit General Insurance Ltd.74.8274.91
8HDFC ERGO General Insurance co. Ltd.79.2170.02
9ICICI Lombard General Insurance Co. Ltd.76.5365.77
10IFFCO Tokio General Insurance Co. Ltd.87.7784.04
11Kotak Mahindra General Insurance Co. Ltd.75.6674.64
12Liberty General Insurance Ltd.70.9559.91
13Magma HDI General Insurance Co. Ltd.85.1378.91
14Navi General Insurance Ltd.150.6982.91
15Raheja QBE General Insurance Co. Ltd.103.9100.51
16Reliance General Insurance Co. Ltd.84.6376.89
17Royal Sundaram General Insurance Co. Ltd92.2387.89
18SBI General Insurance Co. Ltd.92.0586.1
19Shriram General Insurance Co. Ltd.65.4379.43
20Tata AIG General Insurance Co. Ltd.80.2975.41
21Universal Sompo General Insurance Co. Ltd.89.5487.96
22National Insurance Co. Ltd.116.4478.55
23The New India Assurance Co. Ltd.85.3578.2
24The Oriental Insurance Co. Ltd.101.6381.83
25United India Insurance Co. Ltd.96.4577.17
IRDA Claim Settlement Ratio 2022 for Motor vehicle insurance companies

The above figures are in percentage.

Key Highlights from the above data of Motor insurance claim settlement ratio:

  1. Only Raheja QBE General Insurance Co. Ltd. has had more than a 100% claim settlement ratio in past. 2 years. The thing to note here is that the Motor insurance base for the company is very low.
  2. Among the public sector insurance companies, The 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:

Sr NoInsurance Company2019-202020-21
1Acko General Insurance Ltd.00
2Bajaj Allianz General Insurance Co. Ltd.67.1565.86
3Bharti A)(A General Insurance Co. Ltd.116.183.11
4Cholamandalam MS General Insurance Co. Ltd57.6373.52
5Edelweiss General Insurance Co. Ltd.-81.991933.33
6Future Generali India Insurance C. Ltd.58.6385.17
7GO Digit General Insurance Ltd.50.34130.68
8HDFC ERGO General Insurance co. Ltd.81.7390.11
9ICICI Lombard General Insurance Co. Ltd.65.2683.34
10IFFCO Tokio General Insurance Co. Ltd.63.9368.12
11Kotak Mahindra General Insurance Co. Ltd.0-466.67
12Liberty General Insurance Ltd.593767.18
13Magma HDI General Insurance Co. Ltd.174.31479.27
14Navi General Insurance Ltd.00
15Raheja QBE General Insurance Co. Ltd.-20.223.81
16Reliance General Insurance Co. Ltd.10941133.36
17Royal Sundaram General Insurance Co. Ltd58.9747.71
18SBI General Insurance Co. Ltd.72.18133.49
19Shriram General Insurance Co. Ltd.-21.37-27.78
20Tata AIG General Insurance Co. Ltd.73.9278.31
21Universal Sompo General Insurance Co. Ltd.56.08105.36
22Insurers National Insurance Co. Ltd.50.4374.25
23The New India Assurance Co. Ltd.68.0473.53
24The Oriental Insurance Co. Ltd.96.9477
25United India Insurance Co. Ltd.68.2949.94
IRDA Claim Settlement Ratio 2022 for Marine insurance companies

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 means 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:

Sr NoInsurance Company2019-202020-21
1Acko General Insurance Ltd.095.92
2Bajaj Allianz General Insurance Co. Ltd.68.0154.46
3Bharti A)(A General Insurance Co. Ltd.75.2187.35
4Cholamandalam MS General Insurance Co. Ltd42.2833.82
5Edelweiss General Insurance Co. Ltd.120.61135.23
6Future Generali India Insurance C. Ltd.53.2359.62
7GO Digit General Insurance Ltd.78.1158.25
8HDFC ERGO General Insurance co. Ltd.69.9974.78
9ICICI Lombard General Insurance Co. Ltd.64.0263.74
10IFFCO Tokio General Insurance Co. Ltd.45.6762.37
11Kotak Mahindra General Insurance Co. Ltd.80.9954.84
12Liberty General Insurance Ltd.2.0566.64
13Magma HDI General Insurance Co. Ltd.70.8691.55
14Navi General Insurance Ltd.-13.3915.59
15Raheja QBE General Insurance Co. Ltd.3731.8
16Reliance General Insurance Co. Ltd.37.3555.94
17Royal Sundaram General Insurance Co. Ltd52.4660.47
18SBI General Insurance Co. Ltd.55.3653.42
19Shriram General Insurance Co. Ltd.4.5646.86
20Tata AIG General Insurance Co. Ltd.61.5239.4
21Universal Sompo General Insurance Co. Ltd.42.3357.41
22Public Sector Insurers National Insurance Co. Ltd.77.1171.31
23The New India Assurance Co. Ltd.76.1374.07
24The Oriental Insurance Co. Ltd.79.5553.64
25United India Insurance Co. Ltd.130.0958.4
IRDA Claim Settlement Ratio 2022 for Fire insurance companies

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.

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

  1. 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.

  2. 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.

  3. 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.

  4. 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.

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