Max Life, HDFC and Tata AIA much ahead of LIC India in claim settlement

At least 14 private life insurers are ahead of LIC India in terms of individual death claim ratio in financial year 2019-20, shows the IRDAI annual report.

The data shows that Max Life, HDFC Life and Tata AIA were the top three companies in terms of claim settlement ratio

The claim settlement ratio is a metric to gauge the percentage of life insurance claims an insurer has settled during a financial year. This ratio is a measurement used to assess the reliability of an insurance company in paying the claims. A higher ratio indicates that the insurer has performed better in addressing the claims it receives.

The report shows that Max Life has 99.22% of the total individual death claims received during FY 2019-20. Max Life paid Rs.562.54 crore in claims last financial year. HDFC Life and Tata AIA followed Max Life with claim settlement ratio of 99.07% and 99.06% last financial year.

LIC India, the biggest life insurance company in India, has settled 96.69% of the total individual death claim requests in FY 2019-20. In fact, the individual death claim ratio of LIC India has fallen from 97.64% in FY 2018-19.

On the other hand, individual death claim settlement ratio of private insurers has risen to 97.18% in 2019-20 as against 96.64% in the corresponding period preceding year.

Overall, the life insurance industry has settled 96.76% of the total individual death claim settlement ratio by paying over Rs.18000 crore in FY 2019-20. Of the total 8.74 lakh claim requests, insurers have settled 8.46 lakh claims and repudiated 8927 claims.

In terms of turnaround time, private players are much ahead of LIC India. While private insurers have settled 81.50% within 3 months of the claim request received, LIC India settled 53.51% claims within 90 days in FY 2019-20.

Status of individual death claims of life insurers (FY2019-20)