According to the IRDAI’s annual report for 2014-15, of the total 23 private life insurers, only 11 have a claim-settlement ratio in excess of 90% in terms of number of policies, whereas Life Insurance Corporation of India had the best claim-settlement ratio of 98.19%.
The average settlement record of private life insurers was 89.40%. Max Life, Birla Sun Life and Tata AIA have a claims settlement record of close to 95%.
“A direct comparison of claims ratio of young insurance company vis-a-vis an established one could tend to misleading conclusions,” said Sandeep Ghosh, CEO of Bharti AXA Life Insurance. At the bottom of the chart are Shriram Life at 65.66%, Edelweiss Tokio 57.14% and DLF Pramerica Life at 57.19%. According to IRDAI’s annual report, private insurers’ claim-rejection ratio was 7.78%. LIC had 2.08% claims pending at the end of March 2015.