IRDA Claim settlement ratio 2017
IRDA (Insurance Regulatory and Development authority of India) declared the annual report for 2017 (2016-17) in their website recently (Jan 4, 2018), LIC India tops in the list of insurance companies on claim settlement ratio and related information for 2017.
- In the Annual report, LIC India‘s claim settlement ratio stands with 98.31 % for the year 2016-17 as listed in the top by IRDA.
- The pending complaints of LIC is almost went to zero and the claims repudiated or rejected status at 0.97 %
- The unclaimed of LIC reports with 0.31 % out of total claims. on the other hand, private insurance companies dealt with 0.58 %
- Private companies claim settlement ratio at 93.72 % is the lowest as compared with the LIC India and the claim rejected for private at 4.85 % out of the total claims.
- These reports are based on the Individual death claims of life insurers and not with the group insurance.
- While LIC India hits in the top as declared by IRDA, but not for the whole or all policy schemes. LIC India mostly sells the Endowment plans and the claim settlement ratio is also based on these plans.
- So, we should not take this top grade for a whole, like term insurance plans which the report doesn’t show.
Claim settlement Ratio is one of the important factor to choose the better insurance provider, while for the term insurance plans – ICICI Pru life insurance claim settlement ratio stands at 96.68 % for the year 2016-17 and the record also be consistent for the past few years. ( ICICI Pru life claim settlement ratio )
Claim settlement Ratio is generally connected with the number of claims that the insurer has paid to the death of policy holders. If the insurer pays 90 out of 100 that have been filed, then the claim settlement ratio will be as 90 % of the total claims.
So, as per IRDA – LIC India tops by the claim settlement ratio, but it doesn’t mean that they had paid more to the policy holders. It depends upon the claims filed.
You can also check the outstanding claims at LIC India website by filling the LIC Policy number and date of birth.
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