IRDA Life Insurance Claim Settlement Ratio Data for 2021

Published: February 10, 2021 at 7:45 pm

Last Updated on February 19, 2021

The IRDA annual report with Life Insurance Claim Settlement Ratio Data for 2021 (FY 2019-20) was released on Feb 10th delayed by at least 1-2 months due to the pandemic.  The claim settlement ratio data along with total claims and claims paid is presented in the table below.

Life Insurance Claim Settlement Ratio Data for 2021 (FY 2019-20)


InsurerTotal ClaimsClaims PaidClaim Settlement Ratio
Max Life154631534299.22%
Tata AIA2982295499.06%
Pramerica Life56956098.42%
Excide Life3468340498.15%
Canara HSBC OBC1276125298.12%
Reliance Nippon8017786698.12%
Bajaj Allianz121271188798.02%
ICICI Prudential114601121297.84%
Aditya Birla Sun Life5162503597.54%
Bharati Axa1320128597.35%
PNB Met Life4364424197.18%
Star Union1248121096.96%
India First2241216696.65%
IDBI Federal1416136696.47%
Kotak Mahindra3346322596.38%
Future Generali1143108995.28%
SBI Life224902125794.52%
Edelweiss Tokio32627283.44%

Source: IRDA Annual Report FY 2019 2020 (pages 192,193)

Analysis: How to choose

We have already established that the Claim settlement ratio (CSR) is not a probability of life insurance claim acceptance! Even if you make the mistake of assuming it represents a probability, a high  CSR means very little because most companies have this number 95% (20 out of 24) and there is little to distinguish among them based on just this number.

What matters more is the total number of claims. The only reason a buyer is misguided to look at CSR data is that they want do not want to pay a high premium to LIC and want to look for a “reliable private player”.

Only six of these have more than 10,000 claims even 22490 claims to SBI LIFE is a less than 3% of what LIC got.

InsurerTotal Claims
SBI Life22490
Max Life15463
Bajaj Allianz12127
ICICI Prudential11460

So if you want a private insurer then it makes no sense to look beyond these six. They are established and have enough market share to at least registered 10,000 plus claims. Beyond this, you will have to read the terms and conditions of the policy and “just pick one”.

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