Term Life & Keyman

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The claim settlement ratio is an objective yardstick to select a reliable insurer. Especially for term life insurance buyers, the death claim settlement record of the insurer is critical to measure.
The purpose of insurance gets defeated if the claim is not honored. It pinches more when beneficiaries are reliant on the insurance proceeds. In such a situation, a repudiated claim could play havoc on the financials of the family, who just lost their key bread-earner.

So, aside from the features, it is important to compare the claim data of the insurer. We recommend insurers with a claim settlement ratio of at least 90%.

Following are the claim settlement ratios of various insurers in descending order.

InsurerDeath Claim Settlement
(%, FY2016)
Life Insurance Corporation of India99%
DHFL Pramerica Life Insurance Co. Ltd.98%
Star Union Dai-ichi Life Insurance Co. Ltd. Not able to find98%
Tata AIA Life Insurance Company Limited97%
SBI Life Insurance Co. Ltd97%
Max Life Insurance Co. Ltd96%
AEGON  Life Insurance Company Limited.96%
HDFC Standard Life Insurance Co. Ltd96%
ICICI Prudential Life Insurance Co. Ltd.95%
Reliance Nippon Life Insurance Company Limited.95%
Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.94%
Bajaj Allianz Life Insurance Co. Ltd.94%
Birla Sun Life Insurance Co. Ltd92%
Kotak Mahindra Old Mutual Life Insurance Limited92%
Future Generali India Life Insurance Company Limited92%
IndiaFirst Life Insurance Company Limited was Not able to find91%
PNB Metlife India Insurance Co. Ltd.90%
Edelweiss Tokio Life Insurance Co. Ltd.87%
IDBI Federal Life Insurance Company Ltd.,86%
Bharti AXA Life Insurance Company Ltd.86%
Aviva Life Insurance Company India Limited85%
Shriram Life Insurance Co, Ltd.68%
1. Claim settlement = Claims settled/(claims settled + claims rejected+ claims repudiated)
2. Claims data is for individual and group death claims for  LIC, ICICI Prudential, HDFC Life, PNBMetlife, Shriram Life, and Star Union Daichi. For all other insurers, only individual death
claims have been considered