Group Term Life Insurance

Sidebar_image1 Sidebar_image1 Sidebar_image1
1 3 2 4 5 6
Sidebar_image1 Sidebar_image1 Sidebar_image1

Life insurance is becoming an essential part of every Indian household. It doesn’t just provide financial security in the event of your departure but also helps you deal with unexpected expenses. The claim settlement ratio is an important part of purchasing a life insurance policy. A comprehensive life insurance plan coverage with a lower premium will have a low impact if the company rejects your claim for some reason. It is therefore recommended to compare your options and choose an insurer accordingly. This article will go over the top life insurance companies in India with their claim settlement ratios.

Top 10 Life Insurance Companies in India

Insurance Company Claim Settlement Ratio
Max Life Insurance 99.35%
Aegon Life Insurance 99.25%
Bharti Axa Life Insurance 99.05%
Life Insurance Corporation of India 98.62%
Pramerica Life Insurance 98.61%
Exide Life Insurance 98.54%
Kotak Mahindra Insurance 98.50%
Reliance Nippon Insurance 98.49%
Bajaj Allianz Insurance 98.48%
PNB MetLife Insurance 98.17%

Here are the top five Life Insurance companies with high claim settlement ratios:

1. Max Life Insurance

Claim Settlement Ratio: 99.35%

As one of the most popular Indian life insurance companies, max life insurance has been providing affordable and comprehensive life insurance policies to customers all over the nation since 2001. The organisation strives to provide a ‘distinctive’ experience by adhering to the ideals of empathy, openness, and responsibility. The firm now has 269 offices where people seek to improve the insurance service for clients. Today, the firm offers multiple-term insurance plans that give much-needed financial security to the insurance provider’s household in the tragic event of their death.

Key Highlights:

  • High sum assured
  • Quick claim settlement
  • Affordable rates
  • Critical illness coverage is available
  • Policy breaks are available in adverse circumstances
  • Multiple premium payment options.

2. Aegon Life Insurance

Claim Settlement Ratio: 99.25%

Aegon life, a joint venture between the Times Group and Aegon N.V., began functioning in July of 2008 and has since strived to meet the needs of each customer and achieve its long-term financial goals. Aegon Life Insurance provides a variety of insurance policies, including term insurance, unit-linked insurance, and health, as well as savings programs. The company specializes in providing simple yet comprehensive life coverage to customers at an affordable premium rate. With multiple awards under its belt, including ‘eBusiness Leader’ and ‘Most Recommended Life Insurance Brand’, Aegon Life has surely been among the best life insurance providers in the nation.

Key Highlights:

  • High sum assured
  • Complete digital procedures
  • Wide range of plans
  • Quick claim settlement
  • No spam calls from the company.

3. Bharti Axa Life Insurance

Claim Settlement Ratio: 99.05%

Bharti AXA Life has 263 offices spread over India and provides a broad range of life insurance plans. As seen by the huge number of policies released throughout the years, the firm focuses on creating value for its large client base. Besides traditional life insurance, Bharti AXA Life Insurance also provides ULIP plans, retirement investment plans, and even child plans to meet the needs of people from all walks of life. To make premium payments easier, the organisation has partnered with the popular Airtel Payments Bank.

Key Highlights:

  • Flexible coverage options with multiple riders
  • Dedicated claim handler of every policyholder
  • Affordable premium rates
  • Extensive 254-office network
  • Smart card provides access to policy summary
  • 24/7 WhatsApp services.

4. Life Insurance Corporation of India

Claim Settlement Ratio: 98.62%

The Life Insurance Corporation of India (popularly called LIC) is a government-owned insurance company. In September 1956, the Life Insurance Corporation began operations. Life Insurance Corporation is India’s largest and oldest life insurance company. Indian Life Insurance Corporation offers a variety of insurance policies, including term insurance policies, whole life insurance policies, endowment policies, and money-back policies.

Key Highlights:

  • LIC policies are government guaranteed
  • Market leader with over 33 crores customers
  • Quick claim settlements
  • Wide range of policies
  • Affordable premium rates with comprehensive coverage.

5. Pramerica Life

Claim Settlement Ratio: 98.61%

Pramerica Life Insurance company is a joint venture between two firms. This life insurance firm was formed by Prudential International Insurance Holdings Ltd, a unit of the famous Prudential Financial Incorporate and Investment Ltd., which is wholly controlled by Dewan Housing Finance Corp. Ltd. In the year of 2013, the two corporations decided to collaborate on life insurance policies. Pramerica Life Insurance has multiple offices spread throughout India. The firm offers specific coverage for defence forces that cover every one of our comrades in the armed services’ demands. As a result, they received the honorary Pride of India title in 2018.

Key Highlights:

  • High sum assured
  • Expert policy suggestions
  • Wide range of life insurance coverage
  • Quick claim settlement
  • Multiple premium payment options.

Here are the next 5 insurers in order of their claim settlement ratio:

6. Exide Life Insurance

Claim Settlement Ratio: 98.54%

Exide Life Insurance, based in Bengaluru, is wholly owned by the famous Exide Industries of India. Since 2001-02, Exide Life has served around 15 lakh consumers in the nation.  The firm employs a multi-channel distribution structure that includes agency alliances, bancassurance partners, business agency & broking networks, direct channels, as well as digital routes. Exide Life Insurance provides a variety of appealing insurance solutions to meet the needs of its diverse clients. The corporation outperformed on practically every metric, with the standout being the company’s excellent 98.54% claims settlement ratio.

7. Kotak Mahindra Insurance

Claim Settlement Ratio: 98.50%

Kotak Mahindra Life is among the nation’s quickest-growing private insurance firms. Kotak Life Insurance Co, incorporated in 2001, offers a variety of cheap term insurance products at reasonable pricing for policies and coverages. It is one of the company’s primary goals to offer value to individuals s lives via the use of financial products that offer protection as well as long-term savings.

8. Reliance Nippon Insurance

Claim Settlement Ratio: 98.49%

Reliance Nippon Life is a joint venture between Reliance Capital with Nippon Life. The company began operations in 2001. Today, Reliance Life is among India’s biggest private insurance companies. Reliance Life operates with strong morals to secure the financial freedom of everyone who engages with them. The company provides a variety of insurance programmes, including term insurance, investment and savings products, as well as unit-linked insurance policies. Reliance Life insurance products ensure that your household is adequately supported financially in your absence.

9. Bajaj Allianz Insurance

Claim Settlement Ratio: 98.48%

As a collaboration between Allianz SE and Bajaj Finserv Ltd., Bajaj Allianz has quickly become one of the most well-known insurance providers in the nation. Since its launch in 2001, the company has won multiple awards. Bajaj Allianz currently provides a variety of insurance products, including term insurance plans, unit-linked insurance policies, child insurance, retirement, investment plans, saving products, and other products. In contrast, the life insurance firm offers some of the most comprehensive riders and add-on options. Bajaj Allianz Life seeks to deliver the most complete and cost-effective insurance plan available.

9. PNB Met Life Insurance

Claim Settlement Ratio: 98.17%

Punjab National Bank Ltd along with MetLife International Holdings Inc, have formed the PNB MetLife India.  Since its beginning in 2001, PNB MetLife has emerged as one of the nation’s premier insurance companies. PNB MetLife provides long-term savings as well as insurance options to fulfil the various life stage needs of each individual.

Claim Settlement Ratio of Insurance Companies

The entire point of having life insurance is that the policy offers a death benefit to your policy-specified beneficiaries in case the insured dies from an unfortunate event. This benefit will help the beneficiaries to maintain their current lifestyle and use the amount for their higher studies, marriage, and other important events in their event. This is the main contract between the insurance provider and the policyholder.

However, it is important to understand there are specific scenarios under which the insurance claim will not be paid to the beneficiary. These scenarios are called ‘policy exclusions. But other than these, some claims are rejected due to the insured. This might include omitting erroneous information on paperwork or concealing one’s medical records while applying for a life insurance policy. Other grounds for claim rejection might be connected to the insurance provider, such as incompetence and lack of credibility.

The Claim Settlement Ratio offers a percentage amount of the number of claims settled over the overall number of claims filed. As a result, the Claim Settlement Ratio assists an insurance buyer in making an informed assessment of a potential insurer’s dependability and competency. Ultimately, life insurance plans are only as dependable as the insurance firm that offers them.

Highest Claim Settlement Ratio

The highest claim settlement ratio for the financial year 2020-21 goes to Max Life Insurance Co. Ltd. The company boasts a claim settlement ratio of 99.35% according to the yearly audited financials for the financial year. As a collaboration between two famous companies – Axis Bank Ltd. and Max Financial Services Ltd., Max Life is well-known for offering comprehensive and affordable insurance plans as well as long-term savings plans via its multi-channel distribution network, which includes its third-party and agency, networking partners. 

LIC Claim Settlement Ratio

The Life Insurance Corporation of India or LIC is a government-aided life insurance company in India. The company was formed in 1956 as a result of the merging of 245 insurance firms and provident societies. It presently provides a variety of insurance products and financial solutions. Based in Mumbai, it now has a footprint across both rural and urban India, with 2048 branches. The company has a claim settlement ratio of 98.62% as per 2020-21 yearly audited financial records.

Conclusion

When it comes to claiming insurance benefits, you have a right to know what you’re buying. The claim settlement ratio gives you an important metric for deciding on your insurer. The five companies at the top of the list all have high numbers, showing that they are good at considering and paying their policyholders’ claims. This is valuable information, especially when comparing shopping or looking at changing insurers later on in life.

Frequently Asked Questions

  • How to get my ideal life insurance plan?

In order to get your ideal life insurance plan, you need to compare all the policies available to you based on their premium rates, coverage, and other metrics, like the claim settlement ratio.

  • Why do life insurance companies decline claims?

Life insurance claims are declined if the beneficiary fails to register the claim within the required time frame, provides fake medical reports, fails to produce relevant documents, or engages in any other similar behaviour.

  • How much time does an insurance provider take to settle a claim?

The time it takes to settle a claim is determined by the insurance provider and the complexity of the claim. If an in-depth investigation of the claim is required by the insurance provider to prove its legitimacy, the claim settlement provider may take longer than planned to settle the same. The Life insurance company will always notify the beneficiary of an expected policy settlement time at the time of claim filing.