Insurance regulator IRDA on Thursday, 4th January 2018 published their annual report. In this article I will share the IRDA Claim Settlement Ratio 2016-17 and according to that which is the Best Life Insurance Company in 2018.
As per the data disclosed, LIC of India has again top the list of life insurance companies in India. They have settled 8.60 lakh insurance claims on individual policies in the year 2016-17 with a total payout of Rs 13,850.62 crore. So, as per the data LIC claim settlement ratio become 97.74% for FY 2016-17.
Let’s explore more details about this topic and also try to understand how Claim Settlement Ratio can help you to choose the good insurance company.
What is Claim Settlement Ratio?
When we buy any insurance policy, we want to make sure that the company is paying the sum assured value to the insurer’s family in case of unfortunate death. Now this claim needs a rigorous process to settle. Every year every insurance company face many such claims and out of them they settle many and also reject many.
Now the number of successful claim an insurance company settle in a year out of total claim received is called as Claim Settlement Ratio.
Now, as per the latest IRDA Claim Settlement Ratio 2016-17 data LIC got the ratio as 97.74%. That means, out of 100 claims received by LIC of India last year, LIC has settled or paid 98 claims successfully. Only rejects 2 claims.
This data is clearly saying that how friendly this company is while settling claims of death. Although this is a raw data only, the real time information depends on many thing.
Anyway, although the data is showing that LIC of India is the best insurance company in India, but one should not completely judge based on this data only. There are various other criterias one should consider before buying insurance in India.
IRDA Claim Settlement Ratio 2016-17
When we talk about insurance, it always doesn’t say the real meaning of life insurance. There are various types of insurance policies, mostly targeted for investment purpose. If you ask me about the real meaning of life insurance, it should be always term plan.
But the current insurance market is full of such savings cum insurance products which will neither give you a good return or not enough life cover. Anyway, I will talk about more on insurance in my upcoming posts, let’s see the current claim settlement ratio data.
This beautiful chart is prepared by Basavaraj Tonagatti in his blog basunivesh.com. You can also refer to IRDA website for the latest updates in details. You will find the documents attached in both Hindi & English. That means, if you want to read the IRDA Claim Settlement Ratio 2016-17 in Hindi , you simply download the pdf.
Best Insurance Company in India 2018 As Per Claim Settlement Ratio 2016-17
So, as per the data it is clear that LIC of India is far ahead compared to other companies. In fact the number of policies sold by LIC every year is even higher if you add the policies sold by rest of the companies. Anyway, let’s see the top 10 insurance companies in India who are having good Claim Settlement Ratio.
- LIC of India
- Max Life
- Aegon Life
- HDFC Life
- SBI Life
- ICICI Pru Life
- Exide Life
- Tata AIA
- Canara HSBC
- Edelweiss Tokio
But that should not be the only criteria to judge a company as best insurance company. When we talk about insurance, we should know that it should be always term insurance. But if you analyse this Claim Settlement Ratio data you will find that LIC is mostly selling Endowment policies only.
I think IRDA should release some data with which we can come to know how many term insurance policies are selling by these companies and how many of them got settled. Anyway, one should not take this data too seriously.
What is important here is, do you really know why you should buy insurance policy? Then you should do your own research and find out how much insurance is enough for you and then buy accordingly. Anyway, share your thoughts or questions if any related to this topic IRDA Claim Settlement Ratio 2016-17.