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Latest IRDA Claim Settlement Ratio in 2015-16 for life insurers

Updated- Some of the insurers have their data available for 2016-17( Till Sep 30,2016) and the same is being updated on our website. Check the same by getting a quote.

This data has been compiled from IRDA filings done by various insurers.

Here is the summary:

  • Max Life has claim ratio of 96.2% for 2015-16 based on latest data available till March 31, 2016.Settled about 8895 claims worth 245 crores in 2015-16 with just 4 pending claims.
  • HDFC Life has claim ratio of 95.02% for 2015-16 based on latest data available till March 31, 2016.Settled about 11811 claims worth 300 crores in 2015-16 with just 79 pending claims.
  • Future Generali has a claim ratio of 90.5%  for 2015-16. Settled 1416 claims worth 27 crores with 17 pending claims.
  • ICICI PruLife has a claim ratio of 96.5% for 2015-16 having settled 12815 claims worth 399 cr with 44 pending claims

To compare premiums and past IRDA data( from 2011 to 2016) for all insurers, please get a quote now.

(Attaching a few screenshots for Max Life insurance from the website)

Max Life IRDA data 2015-16
Max Life IRDA data 2015-16


Max Life IRDA data
Max Life IRDA data

To see latest data for 2015-16(till March 31,2016) for other insurers like HDFC Life, SBI Life, Aegon, Aviva, Kotak,Edelweiss etc, get a quote below.

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Top 10 Online Term Insurance Plans in 2015 – A Detailed Comparison of features and IRDA data

Compare Term Insurance Online

You have decided to get a term insurance cover to ensure your peace of mind and financial security for your family. Since you have already made this decision, we assume that you have conducted a detailed research on what are term insurance plans. If not, then we recommend you first browse through our complete guide to understanding and comparing term insurance plans online or understand it here.

Why do I need term insurance?

Imagine how your family will cope up with financial liabilities if you were to to die tomorrow or say in next 3 years. How would they pay the home loan or take care of basic family expenses? You should consider term insurance if you are concerned about how your family would manage in the event of your unexpected death.

How does term insurance work?

Term insurance pays out a fixed sum to your family on your death.

How much cover do I need?

The amount of insurance depends on your personal situation. Generally experts suggest a cash sum equal to ten times of your annual income.You might want a term cover just to cover your pending home loan or you want to cover for an amount that will cover your family�s future expenses including marriage of your children or their education. While you may decide to go a very high cover, you also need to consider your annual premiums. With term covers getting cheaper, one should go for a slightly higher covers.

There are several insurance companies offering online term insurance plans in India.  We have chosen 10 insurance companies for comparison, based on their market reputation and number of online term plans sold.

  1. Aegon Religare
  2. Aviva
  3. Bajaj Allianz
  4. HDFC Life (Click here for quick overview on HDFC term plan)
  5. ICICI Prudential
  6. Kotak Life
  7. LIC
  8. Max Life (Click here for more details on Max Life term plan)
  9. PNB MetLife
  10. SBI Life


Compare Term Insurance Plans Online

We will do a detailed online term plan comparison based on the following parameters.

  1. Eligibility
  2. Riders and Premium Waiver- For details check Riders on term Insurance Plans
  3. Claim Settlement Ratio
  4. Solvency Ratio
  5. Premium Affordability
  6. Grievances Resolved

Parameter 1: Eligibility

Every insurance company has certain eligibility criteria to qualify a potential policyholder to invest in its online term plan. These eligibility criteria are mentioned in the table below.

The table below show comparison of term insurance companies eligibility criteria. As you may see, there is hardly any difference in the eligibility criteria across these insurance companies.

Compare term insurance online


Parameter 2: Riders and Premium Waiver

A rider is a provision or a modification to an insurance policy that is purchased separately from the basic policy and that provides additional life cover and other benefits at an additional cost. These most popular riders in term insurance plans are accidental death, critical illness and hospitalization.

A waiver of premium is also a rider. It the policyholder dies, then the insurance company gives this premium waiver facility on the policy the nominee. That is, the policy continues and remains active, but the premium is paid by the insurance company till the end of the policy term.

Except Aviva, LIC and PNB MetLife, all other insurance companies provide accidental death benefit rider. Whereas, the premium waiver facility is available with only 6 of these companies.

Term insurance premium comparison


Parameter 3: Claim Settlement Ratio

Claim settlement ratio refers to the total number of death claims settled by an insurance company. This calculation is done by dividing the total number of death claims received by the total number of death claims settled. For example, if an insurance company receives 1000 death claims and settles 900, the claim settlement ratio of that company would be 90%.

The higher the claim settlement ratio of the company, the better it is for online term plan buyers. It indicates that in the event of the unfortunate death of the policyholder, the probability of the nominee getting the sum assured is higher.

Now, you may see from the table below that LIC followed by Max Life and ICICI Prudential have been maintaining the most consistent claim settlement ratios since last two years. However, would you choose an online term plan from an insurance company just because  it has the highest claim settlement ratio? For instance, LIC in this case? You shouldn’t. Read this article further to understand why.

Compare term plan claim settlement ratio

(Source: IRDA Annual Report and Company Disclosures)

Parameter 4: Solvency Ratio

You may wonder what is solvency ratio and why you should consider it while choosing ans comparing online term insurance plan.

The solvency ratio of an insurance company is a measurement of its assets vs liabilities. It is the size of the capital of an insurance company against all risks undertaken by it. In simpler words, solvency ratio determines whether an insurance company has enough assets to meet its obligations in the long term. Is it financially strong enough to pay claims? Especially mass claims during natural or man-made disasters?

Currently, as per IRDA guidelines, insurance companies are required to maintain a minimum of 1.50 as the solvency ratio.

Among all insurance companies, Bajaj Allianz has the best solvency ratio, followed by Max Life.

Compare term insurance online

(Source: IRDA Annual Report 2013-14)

Parameter 5: Premium Affordability

An insurance company may be reputed as well as have a good claim settlement and solvency ratio. But, does the price of the online term plan fit into your pocket? Online term plans are about 30 to 40% cheaper than offline plans. But the premium may drastically differ between online term plans of various companies. Let us compare term insurance premium online.

We have calculated premium for a 30 year old, non-smoking male for a sum assured of Rs50 lakhs for 30 years. Riders are not included in the calculation.

The table below shows that the premium of LIC is the highest, almost twice more than many other companies.  So, if you were planning to choose LIC e-Term plan based on its highest settlement ratio, you may now want to change your mind!

term insurance premium comparison

Parameter 6: Grievance Resolved

You may be unhappy during your experience while or after buying an online term plan. You file a complaint with the concerned insurance company. The grievance redressal cell of an insurance company will look into your complaint and try to address it as early as possible. The quicker the process and higher the number of complaints resolved, better the grievance procedure is.

Below is the grievance resolved ratio based on the number of complaints. LIC tops here too with 100% resolution of complaints.  So does Aviva. However,  the number of complaints received by LIC is almost 20 times more than Aviva! Four other insurance companies – ICICI Prudential, Max Life, PNB MetLife and SBI Life have more than 99% grievance resolved ratio.

Compare term insurance grievance resolved ratio

 (Source: IRDA Complaints Data)

Top 5 Online Term Insurance Plans

Based on tabulations related to six parameters above, we have compared and ranked top five term insurance plans, 1 being the highest rank and 5 being the lowest rank.

  1. According to Claim Settlement Ratio
  2. top 5 term insurance onlineAccording to Solvency RatioTop 5 term plan solvency ratio
  3. According to Premium Affordability Best term plan premium
  4. According to Grievance Ratio

compare term insurance grievance ratio


 So which is the best online term plan? Conclusion

  1. LIC has the highest claim settlement and grievance solved ratio. However, its term plan is the most expensive of all. Moreover, it just manages to meet the minimum solvency ratio as per IRDA guideline.
  1. Bajaj Allianz has the highest solvency ratio, 90% plus claim settlement ratio and 95% plus grievance solved ratio. You may choose its term plan, given that you can afford its premium which is the second costliest in the market after LIC.
  1. Kotak Life offers the cheapest term plan. It also has a good solvency ratio and grievance solved ratio. But, its claim settlement ratio is under the gold standard of 95%.
  1. Aviva online term insurance plan would have made a good choice, given its premium affordability, high solvency ratio and grievance resolved ratio. But, its claim settlement ratio performance is disappointing.
  1. Our vote goes to MaxLife Online Term Plan. It is the only insurance company which has been ranked among top 5 in each of the four parameters – claim settlement ratio, solvency ratio, premium affordability and grievance resolved ratio.

You can decide to take life cover from one or more company after the online term plan comparison. Each online term plan listed above has its own features and benefits to suit and customize your requirements. But, do remember that these statistics should not be the sole criteria to choose the right online term plan. Make sure whichever plan you choose should also meet your investment goal and financial needs in the long run.

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Life Insurance Claim Settlement Process – Why claims get rejected and All You Should Know

Life Insurance Claim Settlement

The very purpose of a life insurance policy is to secure the breadwinner’s life and his family’s future. Life insurance gives cash benefits to the policyholder during his critical life milestones such as child’s higher education and marriage, health care emergencies and retirement or after the event of his unfortunate death. The benefit(s) received from the purchase of a life insurance policy in return of the premiums paid is called a claim. There are three types of life insurance claims:

1. Death Claim
2. Maturity Claim
3. Rider Claim

This article is divided into five sections to help you understand claims and settlement process.

Section 1: Reasons for claim rejection
Section 2: Understanding claim settlement ratio
Section 3: Claim settlement process – death, maturity and riders
Section 4: Online claim settlement – is it available?
Section 5: Claim settlement promises of insurance companies
Section 6: FAQs


Just imagine if the insurance company refuses to pay either of the above claims! It could be a nightmare for you and / or your family.

You have waited your lifetime to get principal amount plus bonus of the insurance policy, but you don’t receive it. You are critically ill and waiting for amount due on the critical illness rider, but the insurance company refuses to pay. Your family wants to claim the death benefit after your sad demise, but the insurance company denies it.

Should You Always Blame the Insurance Company?

As per the insurance contract, insurance companies are under an obligation to pay the claims. But, then there are certain terms and conditions attached to this payment, which, if overlooked at the time of taking the policy, could prove a fatal mistake during the claim settlement process. While maturity and rider claims are comparatively less hassle-free to receive and chances of rejection are very low, it is the possibility of death claim denials which worries a potential insurance buyer the most.

However, statistics (IRDA June 2015 Journal) reveal that death claim settlement ratio of private sector is hovering around average 89% for the last 3 years, while for that public sector (comprising only LIC) has been consistently more than 95%. This means that out of every 100 death claims made in the last 3 years, private insurers have rejected only 11 cases while LIC has rejected between 1-5 cases.

Hence, it would be incorrect to say that insurance companies do not pay claims. They mostly do, but it is also equally important to know why they don’t do in some cases.

So, Why Claims are Rejected?

A large number of rejected claims are a result of either deliberate or unintentional slip ups on the part of the policy holder. Let’s see a few such reasons of claim rejection.

1. Not furnishing correct information about your age, income, occupation and number of dependents.
2. Not revealing the facts about your medical condition such as any prior diseases or family health history.
3. Not disclosing your lifestyle habits such as smoking or drinking, if you have one. Or, even if you do disclose, you may not be completely honest about the number of cigarettes you smoke or the quantity / frequency of alcohol consumption.
4. Not nominating the beneficiary or not furnishing the correct nominee details could also result in claim rejection.
5. Not paying premiums by due date or within grace period could lead to policy lapse. A claim on a lapsed policy is not valid.
6. Not declaring your previous policy details, if any.

It is advisable to be completely honest about the material facts and also understand all terms and conditions at the time of buying a policy.

You should also verify your personal information filled in the proposal form, especially if done so by an advisor, so that you can eliminate any errors.

After you receive the policy document, you must check that all your details are in order and the terms and conditions mentioned therein are satisfactory. If you find even a single spelling mistake in your name or incorrect mention of any other material fact, you should immediately notify the insurance company to rectify.

Early Death Claim Rejection
An insurance company might also reject an early death claim – that is, the policyholder dies within 3 years of taking the policy. This could be suicide, murder or a fraudulent death. Depending on case to case, the insurance companies undertake a detailed investigation, if they suspect a fraud, especially on discovering the material misrepresentation of the facts.

The Good News
The recent amendment in Section 45 of the Insurance Act 1938 seeks to reduce litigation over claims. According to this amendment, any policyholder can now be sure of payment of claims amount to his heir in case of his unfortunate demise if his life insurance policy has completed three years since inception or revival. The insurers, on the other hand, will have to upgrade their underwriting standards and skills to protect themselves against potential fraud.

The amendment also states that in case of fraud, the insurer must write to the claimant the basis of their considering the proposal or the claim as an attempt to defraud the company. The onus is now on the policyholders or the beneficiaries to prove that the misstatement or suppression of a fact was not done deliberately.

So, both the insured and insurer has to play their part honestly and carefully.


Claim settlement ratio refers to the total number of death claims settled by an insurance company. This calculation is done by dividing the total number of death claims received by the total number of death claims settled. For example, if an insurance company receives 1000 death claims and settles 950, the claim settlement ratio of that company would be 95%. The higher the claim settlement ratio of the company, the better it is for the insurance buyers. It indicates that in the event of the unfortunate death of the policyholder, the probability of the nominee getting the sum assured is higher.

A claim settlement ratio of 95% and above should be ideally taken as a benchmark while comparing insurance plans from different companies. Check here to see current and historical claim settlement ratio of insurers




It is advisable that the claimant registers the claim at the earliest or at least during the claim intimation time (usually 60 to 90 days from the date of the death of the policyholder) as specified by the insurance company. The claimant can also take help of the insurance advisor who sold the policy to the policyholder.

The claim settlement process may slightly vary from one company to another. Here is how the claim settlement process usually works.

1. Intimate the claim: The claimant should contact the insurance company via email, phone, website or branch visit to give the claim intimation and understand the claim settlement formalities. The claimant is required to fill and submit the claim intimation form provided by the insurance company. This form typically contains the basic details like the policyholder name, claimant name, nominee details, policy number as well as date, reason and place of death.

Sample: Death Claim Application Form of Max Life Insurance





2. Submit the documents: The claimant would be required to submit the following mandatory documents to the insurance company.

• Claim form
• A copy of death certificate (never submit the original death certificate, you may require it later for other purposes)
• Original policy document
• Nominee’s photo identity and address proof

Apart from the above documents, the insurance company may ask for the following supporting documents, depending on the nature of the death of the policyholder and type of the case.

• Assignment / Re-assignment deed
• Legal evidence of title, in case the policy is not assigned or nominated
• Medical records at the time of death & past illnesses
• FIR, Police inquest report & panchanama
• Post mortem report
• Certificate from employer, hospital or any other authority as applicable.
• Any other document, as deemed necessary.

3. Settle the claim: The quicker and more precisely the claimant completes the formalities, faster the claim settlement process would be. As per the IRDA guidelines, it is mandatory for the insurance company to settle the claim within 30 days of the receipt of necessary documents and clarifications sought. If the insurance company feels the need for further investigation, it may do so. However, it is still obliged to settle the claim within 6 months from the date of claim intimation.

4. Payout: The claimant will receive the payout after the insurance company approves the claim. Please note as per an IRDA circular, the insurance payouts can be made only through electronic mode. In case the insurance company rejects the claim, communication regarding the same is sent to the claimant.


The payment by the life insurance company to the insured on the date of maturity term is called maturity payment which includes a sum assured and bonus/incentives, if any. The insurance company intimates the maturity date and amount to the policyholder through a blank discharge voucher, about 2-3 months in advance.

The policyholder has to furnish the information mentioned in the discharge voucher, sign it and submit it along with the original policy document to the insurance company. If the policyholder has assigned or reassigned the policy, then the relevant deed has to be submitted too.

Sample: Maturity Claim Discharge Voucher of SBI Life Insurance



The rider claim settlement process depends on the type of the rider taken. At times, the settlement for riders like accidental death or premium waiver runs parallel with the death claim.

Documents Required

1. Critical Illness Rider
• Original policy document
• Claim form
• Hospital admission records
• Medical reports
• Discharge summary
• Any other as required by the insurance company

2. Accidental Disability Rider
• Original policy document
• Claim form
• Attested copy of FIR
• Medical records such as medicine bills and test reports
• Certificate of disability from doctor
• Photograph of the injured with reflecting disablement

3. Hospital Cash Rider
• Original policy document
• Claim form
• Medical records such as medicine bills, test reports and doctor’s prescription
• Hospital Discharge Card



The communication between the claimant and the insurance company regarding intimation to payout / denial will mostly happen through emails, phones or / and letters. The claimant will require to pay a personal visit to the nearest branch of the insurance company at least once.

Whether the policy holder has purchased the policy online or offline, most insurance companies provide the online claim settlement facility with respect to following aspects only:

1. Claim Intimation – The claimant can visit the website of the insurance company and fill up an online form to intimate the claim. For submission of documents and further procedure, the claimant has to visit the nearest branch of the insurance company.

2. Claim Forms – The claimant can download the claim intimation form as well as various other claim related forms from the website of the insurance company. The duly filled forms can be submitted at the nearest branch of the insurance company for further procedure.

ICICI Prudential even has a facility to allow the claimant to upload the documents on its website.

3. Payout – If the claim request is approved, the claim payout will be directly credited to the claimant’s bank account


We visited the official websites of a few insurance companies to understand what they have to say about their death claim settlement process.

1. Max Life Insurance

• Fast settlement
“We will pay all death claims within 10 working days of receipt of all claim documents/ information. We shall pay interest @ 6% p.a. for any delays.”
• Claim assurance
“We ensure payment of all death claims for policies having completed 3 continuous years.”
• Advance account value payout
“We will pay fund value of all Unit Linked policies within two working days of claim Intimation.”
• Personalized assistance
We assign a dedicated Claims Relationship Officer for all death claims

2. LIC

Concessions for claims during the lapsed period

1. If the policyholder has paid premiums for atleast 3 full years and subsequently discontinued paying premiums, and in the event of death of the life assured within six months from the due date of the first unpaid premium, the policy money will be paid in full after deduction of the unpaid premiums, with interest upto date of the death.

2. If the policyholder has paid premiums for atleast 5 full years and subsequently discontinued paying premiums and in the event of death of the life assured within 12 months from the due date of first unpaid premium, the policy money will be paid in full after deducting the unpaid premiums, with interest upto date of the death.



1. Who is legally entitled to receive the death claim benefit?
The death claim is payable to the nominee of the deceased policy holder as mentioned in the policy document.

2. Who is legally entitled to receive the death claim benefit in case there is no nomination in the policy document?
It may be possible that the policy holder made the nomination, but the policy document is not updated with this information. Hence, it is advisable to contact the insurance company to confirm if the nomination details are missing or available in their records.

If there is no mention of the nomination or benefactor of the policy, then the claim is payable to the person who holds a Certificate of Succession or a legal evidence of title from a law court.

3. Whom can the claimant contact if he has any complaints regarding claims?
If there are any grievances such as a claim dispute or a delay in the settlement process, the claimant should approach the Grievance or Customer Complaints Cell of the insurance company. If the claimant does not get a satisfactory response to his grievance from the insurance company, he can approach the IRDA Grievance Cell and thereafter, Insurance Ombudsman if the grievance still remains unaddressed.

4. How to know the status of a claim?
The claimant will get a Claim ID, a kind of reference number against the claim submitted. The claimant can call up the customer care, visit the branch or check the status online using this Claim ID.

5. What if the claimant does not have a Claim ID?
Usually, every insurance company provides a Claim ID. The claimant must take note of this Claim ID. In case the Claim ID is lost, then the claimant can get a status update based on the policy number.

A life insurance claim if repudiated can be alarmingly disturbing the policyholder and / or his family. In order to ensure a hassle-free claim settlement process, it is in the best interest of the insurance buyer to be honest about his disclosures while taking a policy. Also, it is of the utmost importance the policyholder makes the nominee aware of his life insurance policy and also gives a fair idea of handling the claim settlement process.

The claim settlement process should not be a cause of worry, as long as these precautions are taken care of.

So go ahead and find the right term plan for your family by clicking here. Read all the data about insurers before taking the final decision. At the same time don’t delay this decision.

IRDA Claim Settlement Ratio of Health Insurance in 2014-15

Having covered some of the health insurance claim ratios for Apollo Munich and Star Health insurance in 2014-15, here is IRDA claim settlement ratio of heath insurance in 2014-15 for some of the top companies.

Claim Settlement ratio of Max Bupa in 2014-15- 79.7%
Claims Rejected- 12.56%
Total claims settled- 88,584

Claim Settlement Ratio of Religare Health Insurance in 2014-15-87.23%
Claims rejected- 7.5%
Total claims settled-81,545

Claim Settlement Ratio of Royal Sundaram Health Insurance in 2014-15-87.93%
Claims rejected- 8.5%
Total claims settled-21,764

Claim Settlement Ratio of Cigna TTK Health Insurance in 2014-15-77.12%
Claims rejected- 19.4%
Total claims settled-711

Claim Settlement Ratio of Bajaj Allianz Health Insurance in 2014-15- 83.4%
Claims rejected- 18.8%
Total claims settled-1,43,516

Claim Settlement Ratio of ICICI Lombard Health Insurance in 2014-15- 95.2%
Claims rejected- 2.3%
Total claims settled-21,37,983

Claim Settlement Ratio of Oriental Health Insurance in 2014-15- 94.7%
Claims rejected- 0.1%
Total claims settled-6,92,720

Update- For latest 2015-16 IRDA data( till March31,2016) and premiums/features of health insurance companies, you must check our comparison tool

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Also read- Claim Settlement ratio of Star Health Insurance

Also read – Claim Settlement Ratio of Apollo Munich Insurance


Your Complete Guide to Buying an Online Term Insurance Plan

Online Term Insurance Plan

With the internet becoming a routine of our life, the number of net-savvy insurance buyers is gradually increasing. Non-life insurance products such as personal accident, health, motor and travel have fuelled the growth of online insurance products. Now, while a similar trend is yet to gain substantial momentum in life insurance, online term insurance plan have been in particular gaining popularity. As per the statistics, one online term plan is bought every 5 minutes in India! The online quote systems and price comparisons on portals like trucompare facilitate the insurance buyers to buy a term plan easily and as best suited to their needs.

Aegon Religare was the first insurance provider to introduce an online term insurance plan called ‘i-Term’. Today, almost every insurance company from LIC to MaxLife insurance offer online term plans.

Now, if you are wondering if you should buy an online term insurance plan, how safe it is compared to an offline version and what is the process, here is a complete guide to simplify your decision.

Reasons to Buy Term Insurance Plan

  1. Convenient and Quick: One click, anywhere and anytime buying – that’s what an online term insurance plan is about.
  • You can do term plan comparison – browse, research and compare the quotes, features and benefits of the online term insurance plans instantly across the websites of different insurance providers.
  • You really don’t have to contact or follow up with any insurance advisor(s) or fear misselling of any kind.
  • You can scan and submit the KYC documents.
  • You can pay premiums by choosing any of the multiple payment methods available – credit card, debit card, net banking and even IVR (Interactive Voice Response).
  • The policy is processed and issued quickly, so your life cover does not get delayed much.
  • You can renew the policy online as and when the premium due or if it lapses.
  1. Cheaper Cost: The premium of online term insurance plans is about 30 – 40% cheaper than the offline plans. There is a misconception pertaining to economical cost of online term plans, though. Most customers believe that lower the premium, the higher is the probability of a claim rejection or that there is some catch. Well, that’s not true. There are several reasons why online term plans are more affordable. First, there is no agent commission or channel sales cost involved in the pricing. Second, insurers consider an online customer a low-risk profile – he is educated, earns well and prefers to take a life cover. Third, since an online transaction is paperless, the processing and administration cost also comes down significantly for the insurer.
  1. Transparent Process: One of the major problems that an offline insurance buyer faces is transparency – right from meeting(s) with the advisor to filling up the form. You usually rely on the advisor’s advice to understand the key offerings of the plan. There are also chances that your personal details could be misspelled or mentioned incorrectly in the physical form. Whereas, in an online plan, you would be doing all the formalities on your own. You have all the information at hand to make a sound decision. There is a step-by-step procedure to guide you, so the error rate is considerably low.


  1. Lack of Human Touch: If you are someone who prefers the face-to-face support and advice for before (buying) and after (premium payment reminders, claim settlement, etc.) insurance, you may not be comfortable buying an online policy. However, you must also note that the most advisors do not stay for long with one single insurance company. So, if you think that the advisor who sold you policy will stay with you till the end of the policy term (unless he is someone who you know personally), you are mistaken! The good side is that you really don’t need an advisor’s help to buy an online term insurance plan for the reasons stated above. These days, insurance companies send automated text and email status updates / reminders for your policy. And to ensure that the claim settlement procedure is hassle free for the nominee(s), it is advisable to choose a reputed insurer with the best claim payout ratio.
  1. Insurance Lexicon: While applying for an online term plan, you may not understand the insurance wordings on the website. You may have to either dig up more information from the internet to comprehend their meaning or rely on the insurance provider’s customer support service.

Choosing the Right Online Term Plan

Now that you have decided to buy an online term insurance plan, the question is how to choose the right one. We have already written a detailed post on this earlier. Read here to know more.


The process of buying an online term plan differs from one insurance company to another. However, the submission of personal details and KYC documentation remain same. As far as medical tests are concerned, you may have to undergo the same if the insurance provider deems necessary.

We will take examples of two insurance companies – Max Life Insurance and HDFC Life to explain the process of online purchase of term policies.

Max Life Insurance: When you log on to the Max Life Insurance website, you would be requested to fill your basic personal details like name, mobile number, email id, nationality and status. You will be then directed to a premium calculator page. You will need to fill your gender,date of birth, smoking status, sum assured required and policy term to arrive at the premium amount. The next page will take you to an online application form to fill personal details, contact details, previous policy details, health details and nominee details. Then, you will have to make the payment and upload the scanned copies of your KYC documents and any other document if required as per your plan. You will get a payment acknowledgement, which will act as your reference till the policy is issued to you.



HDFC Life: When you log on to HDFC Life website, you would be first requested to choose sum assured, policy term and premium paying term followed by your personal details such as age, gender and smoking habit. After your premium is calculated, the next page will take you to an online application form, which would cover more or less same details as any other insurance provider. On successful completion of the transaction, you will get an acknowledgement and further procedure of issuance will be undertaken.




Buying Tips

Buying online term insurance plans is reliable and safe as long as you chose the right insurer and the right plan. But, you should also keep a few important points in mind to ensure smooth processing of your application and effortless claim settlement process for the nominee(s).

  1. Understand the plan If required, consult your family, friends or an expert. You must also do term plan comparisons to make the right decision.
  1. If you are using a comparison site to seek information, you should verify the information for its relevance and freshness.
  1. Read all terms and conditions on the website carefully, especially the ones in the fine print.
  1. Do remember that most claim rejections result from non-disclosure, incorrect or misleading information. In order to ensure that the nominee(s) does not face any problem in the event of a claim, a precaution at your end while buying a plan is of the utmost importance. You must be honest about your disclosures. For example, you should mention your smoking or drinking habit. Or, if you have any previous life cover, that should be too declared. You may have to pay a higher premium, but it is worth your peace of mind.
  1. The browser page address line should show a secured connection. That is, it should start with ‘https’ instead of ‘http’.
  1. Before making a payment, ensure that the website has Secure Sockets Layer (SSL) certificate so that your transactions are safe and secure.
  1. Save the acknowledgement or reference number of the transaction, whether it was successful or unsuccessful. Ideally, keep a screenshot of the transaction page. This will act as a record till you receive the policy document by courier.

Post – Buying Tips

Your responsibility does not end after buying an online term plan. You have to consider following factors too.

  1. As soon as you receive the policy document, read it thoroughly to verify that your personal and policy details (sum assured, term, premium amount, etc.) are correct. You must also read the terms and conditions as well as exclusions.
  1. You have a right to return the policy to the insurer in the following circumstances.
  • There is any mistake in your personal or policy details. The insurer will rectify and send a new policy document to you.
  • There is a freelook period of 15 days from the date of receipt of the policy document. In case you are unsatisfied with the plan, you can return the policy document within this period and claim a refund of your initial premium.
  1. If the policy document is in order, show it to your spouse, parents, any other responsible family member or the nominee(s). Explain them the reason why you have bought a term plan and educate them on the features of the policy. You should also describe how a claim settlement process works and where and how to contact the insurer as and when such an unfortunate situation arises.
  1. Keep the policy document in a safe and a secure place. At the same time, it is also necessary that your family members or the nominee(s) know where it is kept and how to access it.
  1. Don’t forget to pay premiums on time! What’s the use of a term insurance policy if it lapses and can’t serve the benefits it was taken for? You have an option to renew the policy, however, the insurer may ask you to undergo a medical test. And, if the medical test reveals an unfavourable health condition, you may have to pay a higher premium or your policy may not get renewed. These are the reasons why timely payment of premiums is necessary.


Remember, that you are buying a term insurance plan for the financial security of your family. Online term plans are convenient and cheaper to buy. But, these alone should not be the decisive criteria. Choose an online term plan which meets your financial goals and gives you peace of mind.



Claim Ratio of Apollo Munich Health Insurance in 2014-15 and 2015-16

Claim Ratio Apollo Munich Health Insurance

Here is the IRDA Claim Ratio of Apollo Munich Health Insurance in 2014-15.

Total Claims Processed in 2014-15 – 133160

Total Claims Settled in 2014-15- 120,000

Apollo Munich remains one of the largest and best health insurers in the country.We’d definitely recommend Apollo Munich Health Insurance for your family floater policies.

You can see the summary of the 2015-16 IRDA data for Apollo Munich( till March 31,2016) using our health insurance comparison tool.

IRDA Claim Settlement Ratio of Star Health Insurance in 2014-15

Star Health Insurance is one of the most popular health insurance brands in the country. Although it offers great variety of health insurance products, its claim settlement ratios for 2014-15 are not very impressive. Here is a brief summary:

Total Claims Processed-93833 ( Shows that it is one of the popular health insurance in the country)

Total claims Settled- 70328

IRDA Claim Settlement Ratio for 2014-15 ( till March 31, 2015)- 74.91%

Compared to other health insurance companies like Apollo Munich or Religare Health, this number is certainly lower. One should always prefer to be with an health insurer that is consistently settling above 85% of the claims.

so one should not only compare premiums but also compare data based performance of these health insurance companies.

Update- For latest 2015-16 IRDA data of insurers till March 31,2016, please get a quote below.

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Compare health insurance plan features and IRDA data
Compare health insurance plan features and IRDA data


IRDA Claim Settlement Ratio for 2015 – Compare best online term insurance plans


IRDA Claim Settlement Ratio for 2015

Update- We have updated the claim settlement ratios of online term insurance plans for 2014-15(based on IRDA annual report)  and 2015-16 ( till Dec31, 2015 based on latest data submitted to IRDA by the insurers) on our website.

IRDA has just published its annual report for 2014-15 ,so we have compiled the claim settlement data for online term insurance plan providers in 2014-15 as well as for 2015-16 (till Dec31, 2015). We have also updated our online term plan comparison tables based on the same . This should allow you to choose the best online term plan for 2015 or make a switch if required. Here is the sample 2015-16 data for some insurers:

IRDA Claim Ratio 2015
IRDA Claim Ratio 2015-16

Check- IRDA Claim settlement ratio in 2016- Till Sep 30,2015 

Check- Compare term plan tool to compare premiums and latest IRDA data of all term plans.

Here is some sample IRDA Claim Settlement data for 2014-15:

IRDA Claim Settlement Ratio for 2015

IRDA Claim settlement ratio for 2015


( 2Y+ rejects tells us about the number of claims rejected after paying 2 years of premiums)

Here is a summary of insurer data analyzed so far.

  • Many insurers have improved upon their claim settlement ratios for 2014-15 from 2013-14. Some of the insurers like Aegon Religare have shown marked improvement for 2014-15 and 2015-16.
  • Many good insurers like Max Life, ICICI Prulife, Birla Sunlife, Tata AIA etc. continue to improve their claim settlement ratios and are now around 95% mark which I consider as the gold standard. Based on latest 2015-16 data, Max Life continues to settle most of its claims within 30 days.
  • LIC continues to rule the roost with a claim settlement ratio of closer to 99%! It is a pity that LIC still continues to sell online term plans at such an expensive rate.
  • HDFC Life, SBI Life and Bharti Axa have shown a decline in their claim settlement ratios for 2014-15 and are now closer to or below 90%. For HDFC Life the decline has come primarily because of a lot of pending cases at the end of financial year.

I have always believed that what gets measured gets improved. As IRDA is forcing these insurers to declare these numbers publicly and the consumer is getting more aware about these, companies are making rapid progress.

Get a quick premium quote and you can compare all the IRDA claim ratios for all term plans for 2015 as well as or previous years. You can also check how they scored in last 4 years. For example, check the following Max Life historical charts:

Historical Claim Ratio of Max Life

No. of Claims Paid

Claim Amount in crores

As always it is important to do your research before buying any financial product. Don’t buy what is sold to you but what you need and what is actually good!

And as I always say- Never be lazy about buying a term plan. You will doing your family a great favour by buying one!

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Claim Settlement Ratio for Aegon Religare Term Insurance in 2014-15 and 2015-16

Claim Settlement Ratio Aegon Religare in 2015

Aegon Religare term plan ( iTerm) has been a popular name in the term insurance but its claim settlement ratio in the past years have not been up to the mark. Here is some data for Aegon Religare claim settlement data for 2014-15 (ending March 31, 2015). This is for individual death claims. The official data shall be published by IRDA in beginning of 2016.

For 2014-15

No. of Claims received- 460

No. of Claims Settled- 413

Claim Settlement Ratio- 89.78%

Claims Rejected within first 2 years – 43

Claims Rejected Post 2 years- 3

Aegon Religare has certainly showed a lot of improvement in its claim settlement ratio for 2014-15. Also the data shows that over 90% of claim rejections happen during first 2 years of taking the policy! You can check the historical claim settlement ratio data for Aegon Religare by getting a quote and doing a detailed comparison. It is important to check premiums as well as historical claim settlement ratios before buying your term plan.

Update– Latest 2015-16 data for Aegon Life has been updated in our comparison tool.

Claim Settlement Ratio for Term Insurance Companies in 2014-15- Max Life Insurance

Term Insurance Claim Ratio

Although IRDA is yet to publish, the official claim settlement ratios for term insurance companies in 2014-15, we can still get a decent idea about the same from company data. Here is some data for Max Life insurance claim settlement data for 2014-15 (ending March 31, 2015). This is for individual death claims.

For 2014-15

No. of Claims received- 9152

No. of Claims Settled- 8788

Claim Settlement Ratio- 96.02%

Claims Rejected within first 2 years – 225

Claims Rejected Post 2 years- 75

This means that over 75% of claim rejections or MaxLife happenned during first 2 years of taking the policy! You can check the historical claim data for Max Life by doing a detailed comparison.