Given the multiplicity of life insurance companies in India, it is too daunting a task for investors, both novice and seasoned, to choose the best insurer in order to make a safe and smart investment. It is smart to carefully research about the credibility of a life insurance company with its claim settlement ratio to zero in on the best insurer.
What is Claim Settlement Ratio?
In general terms, Claim settlement ratio is termed as the total number of death claims settled by insurance company in the event of the demise of the insured. If the life insurance companies fail to process one’s claim, the very purpose of buying a life insurance policy is defeated. Therefore, before finalizing a life insurance company to spend your hard-earned money, you must carefully look at how soon the company reimburses the claim proceeds to the dependent or the nominees of the insured.
How is Claim Settlement Ratio Calculated?
Claim settlement ratio is calculated by calculating the percentage of a total number of claims settled from the total number of claims received by a life insurance company in a particular financial year. Let’s take an example to understand this better. Let’s suppose, a life insurance company receives 1000 claims, but process or pays out for just 980 claims, then the claim settlement ratio of that company will be 98%. Remember, the higher the claim settlement percentage, the better that life insurance company. Fortunately, a large number of life insurance companies in India have a fairly higher claim settlement ratio. For more about Claim Settlement Ratio on Financegab.
Let’s look at the table below to see the claim settlement ratio of some of the best insurance companies in India in 2016-17.
Life Insurance Companies in India with Claim Settlement Ratios
|Life Insurance Company||Claim Settlement Ratio|
|Max Life Insurance||96.03%|
|Birla Sun Life Insurance||95.30%|
|Tata AIA Life Insurance||94.47%|
|Star Union Daichi||94.08%|
|ICICI Prudential Life||94.80%|
|Bajaj Allianz Life||90.73%|
|Kotak Mahindra Life||90.73%|
|HDFC Standard Life||90.50%|
|Bharti AXA Life||80.90%|
|IDBI Federal Life||75.80%|
|India First Life||72.21%|
The table listed above showcases the best insurance companies in India with highest claim settlement ratios in the financial year 2016-17. If you look at the list carefully, you will see that companies such as LIC, MaxLife, Birla Sunlife, ICICI Pru and Tata AIA Life are amongst the best life insurance companies in India.
Remember, the performance of a life insurance company is evaluated through the claim settlement ratios and it makes sense to choose the companies that consistently offer good claim settlement ratio. This will ensure that your investment is safe and your nominees of family members will not have any problems in making the claim.
But when making a decision, do not forget to check how much time does the intended life insurance company takes to settle a claim. This will help you analyze how much time it will take for you or your nominees to receive the claim in case there is a need. To make things easier for your, we have list of best life insurance companies that with highest claim settlement ratio within 30 days of making the claim.
Life Insurance Companies with Claim Settlements Within 30 Days of Claims Made
|Life Insurance Company||Claim Settlement Ratio|
|Max Life Insurance||78.65%|
|Birla Sun Life Insurance||64.03%|
|Tata AIA Life Insurance||64.35%|
|Star Union Daichi||33.33%|
|ICICI Prudential Life||91.89%|
|Bajaj Allianz Life||64.64%|
|Kotak Mahindra Life||75.30%|
|HDFC Standard Life||85.37%|
|Bharti AXA Life||62.52%|
|IDBI Federal Life||80.06%|
|India First Life||69.32%|
Also Read: Top 5 Features of Best Life Insurance Companies in India
Over to You!
With a careful detail to the lists mentioned above, you will be able to easily pick out the best life insurance companies in India to invest your hard earned money. Remember, when taking your call, always check the claim settlement ratio and how fast your chosen life insurer settles the claim to make the best decision.
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Life insurance is very important. After all, what could be more important than life? However, one thing you want to keep in mind is that a person buys a life insurance policy not because he is afraid of death or that he is about to die, but because he takes care of his family and his loved ones are living Life insurance policy in India
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