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    LIC Scores Highest in Settling Claims ECO 04-07-2016

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    Atul A Sharan
    LIC had the highest claim settlement ratio at 98.19% according to an IRDA annual report for 2014-2015. On average, private life insurers settled 89.40% of claims, with Max Life, Birla Sun Life and Tata AIA settling close to 95% of claims. Younger insurance companies have lower claim settlement ratios as most of their early claims require more investigation. The report also noted that LIC had the lowest claims rejection ratio at 2.08% while private insurers averaged 7.78% rejected claims.

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    LIC Scores Highest in Settling Claims ECO 04-07-2016

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    Atul A Sharan
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    LIC had the highest claim settlement ratio at 98.19% according to an IRDA annual report for 2014-2015. On average, private life insurers settled 89.40% of claims, with Max Life, Birla Sun Life and Tata AIA settling close to 95% of claims. Younger insurance companies have lower claim settlement ratios as most of their early claims require more investigation. The report also noted that LIC had the lowest claims rejection ratio at 2.08% while private insurers averaged 7.78% rejected claims.

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    LIC Scores Highest in Settling Claims

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    LIC had the highest claim settlement ratio at 98.19% according to an IRDA annual report for 2014-2015. On average, private life insurers settled 89.40% of claims, with Max Life, Birla Sun Life and Tata AIA settling close to 95% of claims. Younger insurance companies have lower claim settlement ratios as most of their early claims require more investigation. The report also noted that LIC had the lowest claims rejection ratio at 2.08% while private insurers averaged 7.78% rejected claims.

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    28 views1 page

    LIC Scores Highest in Settling Claims ECO 04-07-2016

    Uploaded by

    Atul A Sharan
    LIC had the highest claim settlement ratio at 98.19% according to an IRDA annual report for 2014-2015. On average, private life insurers settled 89.40% of claims, with Max Life, Birla Sun Life and Tata AIA settling close to 95% of claims. Younger insurance companies have lower claim settlement ratios as most of their early claims require more investigation. The report also noted that LIC had the lowest claims rejection ratio at 2.08% while private insurers averaged 7.78% rejected claims.

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    LIC Scores Highest in Settling Claims

    Shilpy Sinha, Mumbai Jul 04 2016 : The Economic Times (Mumbai)

    The life insurance industry's success depends on claims management but are insurers too
    miserly when the time comes for them to pass on benefits to nominees? Of the total 23 private
    life insurers, only 11 have a claim-settlement ratio in excess of 90% in terms of number of
    policies, according to the Insurance Regulatory and Development Authority (Irda) annual report
    for 2014-15.

    State-owned 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 claim settlement record of close to 95%.

    Newer companies have an inbuilt disadvantage. They reject more claims as most of these are
    early ones and have to be investigated.

    “A direct comparison of claims ratio of young insurance company vis-à-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%.

    Apart from claim-settlement data, customers should also look into factors like client-servicing
    capability and brand value while buying life insurance from companies that have been in
    operation for less than 10 years, experts say.

    According to Irda's annual report, private insurers' claim-rejection ratio was 7.78%. LIC had
    2.08% claims pending at the end of March 2015.

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