Life insurance companies in India with best claim settlement ratio above 95%

Picking the ideal life insurance company can be tricky. This article will guide you through the top 5 companies with the highest claim settlement ratio

Top 5 Life insurance companies in India

The importance of life insurance cannot be overstated. If you want to safeguard your family’s future, you need to think about getting a life insurance policy. Life insurance is essentially a contract between you and your insurer, wherein you pay regular premiums. Then, in the unfortunate event of your demise, your beneficiaries will receive a lump sum payout. 

The insurance amount will act as a welcome safety net for your beneficiaries, who won’t have to face any financial hardships after you are gone. But how should you go about selecting a life insurance company? Let’s talk about the claim settlement ratio, one of the most important criteria to pay heed to while picking a life insurance company.

Claim settlement ratio decoded

Claim settlement ratio is the percentage of claims that a life insurance company settles, compared to the total number of claims it receives. It is calculated as a percentage using the following formula.

Claim settlement ratio = (Number of claims settled ÷ Total number of claims received) x 100

Claims could get rejected for multiple reasons such as impersonation, misrepresentation, fraud, etc. So, you should be extremely careful while filling out your application.

Related: Death Claim: Is It Possible To Claim From More Than One Life Insurance Policy?

Why look for a high claim settlement ratio?

The claim settlement ratio of an insurance company shows the number of claims it accepts and rejects within a fiscal year. So, it is one of the best ways to rate an insurance provider. It is ideal to look for companies with a claim settlement ratio of over 95% since this indicates a higher chance that you will receive your claim without any hassle.

While the claim settlement ratio is often used to judge the quality of a life insurance company, it is not a good idea to base your decision solely on it. You should also consider other factors, such as plan coverage, service quality, policy benefits, etc.

Related: FAQs About Life Insurance Coverage During Pandemic Times

So which are the top 5 life insurance companies with the best claim settlement ratio for the FY 2019-2020?

Here are the top 5 life insurance companies in India that boast a claim settlement ratio of over 95%:

  1. MAX Life: Max Life comes first on our list with a claim settlement ratio of 99.22%.
  2. HDFC Life: HDFC has an impressive claim settlement ratio of 99.07%.
  3. Tata AIA: Following close behind, Tata AIA boasts of a claim settlement ratio of 99.06%.
  4. Pramerica Life Insurance: While Pramerica Life Insurance had a significantly lower number of cases than the other companies on this list, it returned a claim settlement ratio of 98.42%.
  5. Canara HSBC OBC: The last one on our list, Canara HSBC OBC has a claim settlement ratio of 98.12%.

Source: EconomicTimes.com

Last words

While the claim settlement ratio of a life insurance company allows you to gauge how many of its total claims a company settles, it should not be the only criteria for judging a provider. It could be possible that the company rejected claims because of genuine reasons.

Related: How To Choose The Right Insurance Company?

While selecting a life insurance provider, we recommend checking out their benefit amounts as well. It will help you make an informed decision.

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