Claim settlement ratios (CSR) published by IRDA do not represent the probability of claim acceptance. Most private insurers have a claim settlement ratio comparable to that of LIC. Therefore the CSR will not help you choose a term life insurance policy. At best, CSRs would help you reject a few insurers. Here are some insights from IRDAs Annual report 2016-17.
The claim settlement ratio should have never been a criterion for selecting term insurance policy because there is zero evidence to support it Thanks to irresponsible bloggers and reporters, it became popular. Search for “claim settlement ratio” in Google today and the first link’s title is: “Claim Settlement Ratio for Term Insurance by IRDAI”. Google may be using AI, but it is still an algorithm. Who will educate it that IRDA does not differentiate between CSR of pure term life insurance and investment-mixed policies which are still extremely popular?