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:
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:
( 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:
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!