LIC has near 100% claim settlement record

According to D K Mehrotra, chairman, Life Insurance Corporation of India, for the year ended March 31 2012, the company settled a total of 185.70 lakh claims with an amount of 65,586 crores under individual category alone. 

“93.19% of the maturity claims are settled on or before maturity date. 93.94% of non-early death claims are settled within 15 days of intimation,” he says.

Mehrotra added that this year, so far the company has settled 152.16 lakh number of claims and an amount to the tune of Rs 49349.61 crores. LIC’s death claim repudiation ratio is also very low at 1.35%, lowest among all the insurers in India. Incidentally, industry’s repudiation ratio is 2.24%.

Mehrotra states that their endeavor has been to connect to the customer and not just sell products. “Our motto has been ‘Compete with your own’. We take pride in being the true deliverers of promises,” he says. He explains that the company makes it a point to settle survival benefit and maturity claims well in advance.