Which life insurer is good in settling claims?

A claim settlement ratio is a good indicator of determining how reliable your insurer is in honoring claims, i.e., how reliable they can be towards your clients.

IRDAI data shows that the life insurance industry’s claim settlement percentage for the FY 2022-2023 was 98.45%. This was a decline from FY 2021-2022, where the industry had a 98.64% claim settlement percentage.

Despite the decline, nine insurers had a death claim settlement in number of claims above 99% in the FY 2022-2023.

In terms of benefit amount, the industry settled claim of Rs.28,611 crore as against the request amount of Rs.30,200 crore, a settlement ratio of 94.69%.

Data released by the Insurance Brokers Associations of India (IBAI) shows that Axis Max Life has the highest claim settlement ratio of 99.51% in FY23. This was followed by HDFC Life and Aegon life at 99.41% and 99.37%, respectively.

Among other life insurers with over 99% claim settlement ratio are Edelweiss Tokio Life with 99.20%, Canara HSBC Life with 99.10% and Bharti Axa Life also with 99.10%.

Others in the top ten list are PNB Met Life, Bajaj Allianz Life, Tata Aia Life and Star Union Dai-ichi Life.

Let’s look at the table showing the death claim settlement: