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Claim Settlement Ratio (CSR) is an important parameter in the selection of an insurance policy. If you are going for a pure insurance plan, a term insurance plan is an ideal option. The term insurance plan is pocket-friendly, and the financial benefits are very high. However, it is important to acknowledge that the insurance company should pay the death benefit after the nominee initiates the claim settlement process.
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The term insurance claim settlement ratio, or CSR, is the ratio of the total number of approved claims and the total sum of claims received by the insurance company. This ratio is measured every financial year. The information is available on the insurance company's official website. The claim settlement ratio is measured for all insurance products and is not confined to the term policy alone.
The Insurance Regulatory and Development Authority of India (IRDAI) releases the details of claim settlements of all life insurance companies every year for people to be aware of all necessary details regarding life insurance companies. This transparency allows people to make an informed decision so that they can buy the best term insurance plans from the insurer with the highest CSR. Check the CSRs of all the Indian life insurance companies below.
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Here is a list of India's Life Insurance Companies and their respective Claim settlement amounts and Claim settlement ratios for the financial year 2023-24.
| Name of the Life Insurance Company | Claim Settled Amount(in cr) | CSR(in %) | |
| Aditya Birla Sun Life Insurance Company Limited | 458 | 98.4 | |
| Aviva Life Insurance Company India Limited | 97.60493 | 98.75 | |
| Bajaj Allianz Life Insurance Company Limited | 603 | 99.23 | |
| Bandhan Life Insurance Limited | 86 | 99.7 | |
| Bharti Axa Life Insurance Company Limited | 147.8473 | 99.01 | |
| Canara HSBC Life Insurance Company Limited | 186 | 99.23 | |
| Edelweiss Life Insurance Company Limited | 59.01555 | 99.23 | |
| Future Generali India Life Insurance Company Limited | 32.81137 | 96.08 | |
| HDFC Life Insurance Company Limited | 1389 | 99.5 | |
| ICICI Prudential Life Insurance Company Limited | 1950 | 99.17 | |
| IndiaFirst Life Insurance Company Limited | 159.8145 | 98.04 | |
| Kotak Mahindra Life Insurance Company Limited | 320.9181 | 98.74 | |
| Life Insurance Corporation of India | 18397.77 | 98.5 | |
| Axis Max Life Insurance Company Limited | 1242 | 99.7 | |
| PNB MetLife India Insurance Company Limited | 407 | 99.2 | |
| Pramerica Life Insurance Company Limited | 29.8 | 99.06 | |
| SBI Life Insurance Company Limited | 1676 | 98.3 | |
| Shriram Life Insurance Company Limited | 109.4 | 98.09 | |
| Star Union DAI-ICHI Life Insurance Company Limited | 113.4 | 96.27 | |
| Tata AIA Life Insurance Company Limited | 776 | 99.13 |
*Disclaimer: The list of insurers mentioned are arranged according to the alphabetical order of the name of insurance company respectively. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
If the claim settlement ratio of a company is higher than 95%, it is considered good. The average value of the claim paid will be high if the sales of term insurance are also high.
Note: Check out the best term insurance plan in India and choose one that suits your requirements.
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Term insurance claim settlement ratio is an important parameter to consider before choosing the right insurer to buy term plan from. In terms of numbers, the claim settlement ratio in FY 2022-23 is highest in Axis Max Life Insurance with 99.5% CSR, followed by HDFC Life Insurance and Bandhan Life Insurance, both with 99.4% CSRs. Other renowned insurers with high CSRs in FY 2022-23 include Edelweiss Tokio Life Insurance, PNB MetLife Insurance, Tata AIA Life Insurance, etc., each with over 99% CSRs.
The individual death claim settlement ratio (CSR) of the life insurance industry in FY 2022-23 was 98.45%. This means that the life insurance industry has settled more than 98% of the total individual death claim requests that were received during the financial year 2022-23. The overall claim settlement ratio (CSR) was 98.64% in 2022-23.
You can calculate term insurance claim settlement ratio using this formula:
Claim Settlement Ratio = (Total claims settled in one FY / Total claims received in a year) x 100
Here is an example to understand it better:
An insurance company received 1000 death claims between April 1, 2022 and March 31, 2023. If the insurance company paid 950 claims successfully, and 40 claims were rejected. The company is yet to decide the fate of 10 claims.
Therefore, the claim settlement ratio will be 950/1000= 95%
The claim rejection ratio = 40/1000 = 4%
The claim pending ratio = 10/1000 = 1%
In the scenario mentioned above, the insurance company does not accept or excludes the remaining 5 percent of claims. Insurance providers may reject claims due to various reasons like fraud, impersonation, or misrepresentation. While the term plan claim settlement ratio provides insights into settled claims in a year, it's not wise to judge a company's stability solely on this ratio. Other factors like policy benefits, service quality, and policy options should also be considered when choosing an insurance company.
*Note: You can use the term plan calculator to calculate the premium amount of your term insurance plan.
The term insurance claim settlement ratio is always mentioned as a percentage. The standardization was done by the IRDAI (Insurance Regulatory Development Authority of India), and the information is published on an annual basis.
To understand the importance of claim settlement in term insurance, you need to understand what is term insurance. After assessing the CSR of different companies, you can choose the term insurance from the most suitable company.
By purchasing a life insurance plan, you ensure the financial protection of your family against unfortunate events. When the insurer settles the claim, your family is more likely to have a hassle-free, transparent and simple claim process. Thus, you can rest assured that your family does not have to struggle to receive the sum assured.
The term insurance claim settlement ratio indicates the ability of an insurer to pay the sum assured amount to you or your nominee. If your respective insurer is maintaining a high CSR consistently over a certain amount of time, they are considered to settle claims quickly and thus are called a reliable company.
The following factors will also impact the insurer’s CSR.
Non-disclosure – If the policyholder fails to inform the company about his/her true condition. Any health issues should not be hidden. When the insurance companies come to know the truth about your health that can adversely affect your insurability, the insurance company may reject your claim. Thus, non-disclosures negatively impact CSR.
Fraud – The policyholder may conceal information with the intention to cheat the insurance company. If the insurance company is suspicious about the authenticity of the proposer’s claim, the company may decline the claim. It will have a negative impact on CSR.
Ignorance of policyholder – If the policyholder fails to follow the terms and conditions mentioned by the insurance company. It is an extremely unpleasant experience when the policyholder isn’t clear about the terms and conditions of the policy. You should spend time and effort to go through the contents of the policy. If you are not sure of any clause, you can approach the insurance company directly or the agent.
Nomination update/error – If the policyholder fails to fill the nomination column in the insurance proposal form. It will have a negative impact on the insurance company. The insurance company may fail to process the claim if there is a delay in identifying the legal heir. The nominee should be present while settling the claim. If there is any dispute between two parties with reference to the nominee, the issue should be resolved. No claim settlement will take place until the dispute is resolved.
To choose the best term insurance company in India, you should consider the following factors:
The term insurance claim settlement ratio (CSR) helps you understand the company’s claim settlement abilities over the past financial year. Using this, you can compare term plans from different insurance companies and purchase the plan from the company with the most suitable term plan claim settlement ratio.
You should always opt for a term plan from an insurer with the most dedicated customer service, as it can help you in the long run. The top 10 term insurance claim settlement ratio companies offer 24x7 customer support and resolve customer queries regarding the policy.
The customer reviews with the insurer give us an insight into the customer’s experience with the company. This way, you can choose a company with the best customer service.
Inflation will reduce the worth of your savings. Hence, you should choose an insurance company with a ‘sum assured’ that fulfils your financial needs in the best possible way. You can easily use a term plan calculator to get an estimate of the premiums you need to pay for the desired life cover.
By choosing various kinds of riders, you will be eligible for a significantly increased financial benefit. There are various term insurance riders, such as critical illness, accidental death, accidental total permanent disability, waiver of premium, hospicare, and terminal illness, with which you will get a lump sum amount on the occurrence of the covered eventuality.
*Note: It is wise to firstly understand what is term insurance and what is the CSR of the insurer before you choose the best term plan online.
You should be aware of the term insurance claim settlement ratio while buying a suitable term policy. You can compare term plan from different insurers based on their term plan claim settlement ratios and make an informed decision about the term plan best suited for you. In addition to the term insurance claim settlement ratio, you should consider other prominent features as well in choosing the best term policy as per your objective.
Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.
˜Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25.
Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
+Rs. 487/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited
We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale
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+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
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