Insurance Planning (17)


Life Insurers Claim settlement ratios Pending claims Avg. ageing of pending claims Avg. claim settlement time
  % % Days Days
LIC 98% 0.5% 286 26
Max Life 96% 0.1% 60 26
Birla Sunlife 96% 1.7% 180 29
Tata AIA Life 95% 1.0% 259 30
ICICI Prulife 94% 0.8% 80 20
Star union Daichi 94% 0.3% 113 19
PNB Metlife 93% 1.5% 65 15
Bajaj Allianz 92% 3.0% 46 28
HDFC std Life 91% 2.3% 64 25
Kotak Mahindra 91% 3.3% 293 28
 Sahara life  90% 3.6%   77 27
Canara HSBC 90% 3.2% 134 57
Aegon Religare 90% 0.2% 45 38
SBI Life 89% 3.3% 157 22
Excide Life 86% 1.6% 77 33
Reliance Life 84% 5.8% 160 38
Future Generali 84% 1.8% 68 50
Aviva Life 83% 0.5% 45 26
Bharti Axa Life 81% 2.9% 48 33
India First Life 72% 5.0% 58 46
IDBI Federal Life 72% 4.3% 56 33
Shriram Life 67% 11.2% 83 172
DHFL Pramerica 57% 6.5% 154 207
Edelweiss Tokio 57% 5.1% 60 77
Total 97% 0.8% 206 26


Source: Mint Money dated 2nd Feb 2016



Claims settlement ratios of Life Insurers

(Latest available IRDA data for 2013-14)

 Claim Settlement Ratio

I received a mail from a friend of mine who attended a seminar on “The Ombudsman system in Insurance” in which the Insurance Ombudsman was the chief guest. The mail (edited a little) goes on like this ; Quote “The Ombudsman's position is a unique one: his decision is binding on the Insurance company. He cited certain examples, which I feel is very important for everyone to read and understand.

1. It seems 26% of the complaints concerning life insurance were against a certain group of companies. Surprisingly, this company has a market share of only 2%! He didn't tell us the name of the group. 

LIC’s e-Term is a regular premium “on-line term assurance policy” which provides financial protection to the insured’s family in case of his/her unfortunate demise. This plan will be available through on-line application process only and no intermediaries will be involved. It is much cheaper to off line plans.

Insurance is a form of risk management and it is used to transfer of risk of death, cost of medical treatment, risk of bodily injury by accidents, theft of house hold articles etc by paying certain amount known as premium. Two types of insurance are available, life insurance and general insurance. General insurance covers health, motor, fire, marine and other non traditional insurance. The contracts of general insurance are for one year whereas life insurance contracts terms are more than a year.

Life insurance covers the risk of death; health insurance covers the risk of sickness; where as personal accident insurance covers the risk associated with accidents. If the life assured is seriously  injured in an accident and disabled either temporarily or permanently, he/she will not able to work and earn. To minimize the financial hardship of the life assured and his/her family members, the personal accident insurance provides the financial support. It’s an important component of insurance planning; hence personal accident insurance is very essential. Life insurance cover without personal accident cover is inadequate from risk management point of view.

Insurance planning is must for every individual. Before purchasing any insurance product, check claim settlement ratio first. A risk profiling done by fee only certified financial planner will help you in choosing the suitable insurance products.

Insurance planning is must for every individual. A SEBI registered investment adviser will help you in choosing the suitable insurance products.

What is top up health insurance policy?

A top-up health insurance is an additional policy to the base standard policy. This policy comes into force only when the hospitalization expenses exceed the threshold limit of the base policy.  This limit is called deductible. A deductible is that portion of the claim amount that is not covered by the insurance company and has to be paid by the insured person/insurance company providing the base cover. For example if the base policy is for Rs 3 lakhs, a top up policy of Rs 10 lakhs means the deductible for the Top up policy is Rs 3 lakhs. In case a hospitalised person claims Rs 10 lakhs, he/she can claim Rs 3 lakhs from base policy and the difference amount of Rs 7 lakhs from top up policy.

The Guaranteed maturity insurance plan has been launched by life Insurance companies which provide both protection and savings. If the insured person dies during the term of the policy, the insurance company gives a lump sum amount to his/ her family otherwise the insured person will get a lump sum amount at the time of maturity.

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