The most important reason due to which people buy insurance policies is because the insurance providers offer life cover to the dependents in case of the unfortunate death of the policyholder. In simple words, this means that the insurance provider will give the assured sum to your family members if you die within the tenure of the policy to secure their financial future.
Indians are known to be very price conscious and often go for cheaper policies. They often forget to consider the claim settlement ratio of an insurance provider when buying a life insurance. However, the claim settlement ratio is one of the easiest ways to determine the worth of an insurance provider. While it is not recommended that you should only rely on the claim settlement ratio of an insurance provider when selecting a life insurance, it definitely is one of the most important considerations.
What is Claim Settlement Ratio?
In simple terms, the number of policies settled or paid the sum assured to the family of insurer is measured by this parameter. This is a simple calculation, the number of claims received by the insurance company and how many of them are settled for a particular financial year, this ratio is called Claim Settlement Ratio. Obviously, the higher is Claim Settlement Ratio, the better the reputation of the insurance company.
List of Best Insurance Companies Based on Claim Settlement Ratio
To help you out, we have listed 10 best life insurance companies in India based on their claim settlement ratio.
With a claim settlement ratio of 90.73%, Aegon Religare is at the 10th spot. In the year 2016, the company received 460 death claims and it settled 413 claims with an average claim amount of Rs. 744,068.
At the 9th spot, we have the SBI Life with a claim settlement ratio of 92.90% in the year 2016. The company received a total of 14,876 death claims in the year and it settled 13,303 claims with average claim amount at Rs. 229,572.
Kotak Mahindra Life
Kotak Mahindra has a claim settlement ratio of 94.80% in the year 2016. It received 2,686 death claims out of which the company settled 2,437 claims. The average settlement amount stood at Rs. 296,143. However, the company still has about 3.2% of the claims pending in 2016.
In the year 2016, PNB MetLife has a claim settlement ratio of 95.01% and received 2,466 death claims out of which the company settled 2,290 claims. As compared to many other insurance providers, the average claim amount of PNB MetLife is higher at Rs. 448,821.
ICICI Pru Life
ICICI Pru is one of the most reputed insurance providers in the country. It had a claim settlement ratio of 95.02% in the year 2016. It received 12,309 death claims in the year and settled 11,546 claims with the average claim amount being Rs. 305,612.
Star Union Daichi
While Star Union Daichi had a claim settlement ratio of 86% in 2015, it increased to 95.30% in 2016. The company received a total of 1,266 claims in the year and settled 1,191 claims with the average claim settlement amount of Rs. 285,306.
TATA AIA Life
With a claim settlement ratio of 95.70%, TATA AIA Life is at the 4th spot. The company received 3,873 death claims in the year 2016 and settled 3,659 claims. The average claim amount was Rs. 241,241 and the pending claims were only 1%.
Birla Sunlife had a claim ratio of 96.20% in 2016 which makes it one of the best insurance providers on the basis of claim settlement ratio. The company received 8,436 claims in the year and settled 8,055 claims with an average claim amount of Rs. 345,241. However, the pending claims of the company are slightly higher at 1.70%.
At the 2nd spot, we have Max Life with a claim settlement ratio of 96.23%. In the year 2016, the company received 9,223 death claims and it settled 8,804 claims with the average claim value of Rs. 278,816. Also, at 0.10%, the company also has the lowest pending claims as compared to other insurance providers in this list.
LIC of India
LIC has been at the top spot on the basis of the claim settlement ratio and has continued to retain its spot for 2016 too. The company had a claim settlement ratio of 98.19%. In 2016, the company received 755,901 death claims and settled 742,243 claims. However, the average value per claim of LIC is the lowest at Rs. 120,654.
These are 10 best life insurance providers in India on the basis of the claim settlement ratio. Make sure that you do not select an insurance provider only on the basis of the claim settlement ratio and consider other important factors like cost of the policy, additional benefits, reputation of the company, reviews, etc. too.