According to a study, 30% of people in India buy life insurance policies. However, the coverage rate in rural areas stands at 8-10%, and 78% of the population In urban areas is inclined more toward securing their future. Many life insurance policies are available for individuals and families. Here, We will discuss the claim settlement ratio of life insurance companies and learn about the 10 Best Life Insurance Companies in India with Claim Settlements Ratio.
What is Life Insurance?
A life insurance policy is an agreement between the buyer and the insurance provider. In this policy, the company pays the promised amount to the policyholder’s family in case the insured person dies during the policy term. Various companies offer life insurance, but you must consider the claim settlement ratio of life insurance companies before purchasing the plan.
What is Claim Settlement Ratio?
In general terms, the Claim settlement ratio is the total number of death claims settled by the insurance company in the event of the insured’s demise. If the life insurance companies fail to process one’s claim, the very purpose of buying a life insurance policy is defeated. Therefore, before finalizing a life insurance company to spend your hard-earned money, you must carefully examine how soon the company reimburses the claim proceeds to the dependent or the nominees of the insured.
Also read: Top 10 Best Life Insurance Plans in India
10 Best Life Insurance Companies in India
The table below mentions India’s top 10 life insurance companies and life insurance company’s claim settlement ratio:
| S.no | Life Insurance Company | Sector | life insurance companies claim settlement ratio |
| 1 | Max life insurance company Ltd. | Private Sector | 99.35% |
| 2 | Aegon Life Insurance Company Ltd. | Private Sector | 99.25% |
| 3 | Bharti AXA Life Insurance Company Ltd. | Private Sector | 99.05% |
| 4 | Life Insurance Corporation of India (LIC) | Public Sector | 98.62% |
| 5 | Pramerica Life Insurance Company Ltd. | Private Sector | 98.61% |
| 6 | Exide Life Insurance Company Ltd. | Private Sector | 98.54% |
| 7 | Kotak Mahindra Life Insurance Company Ltd. | Private Sector | 98.50% |
| 8 | Reliance Nippon Life Insurance Company Ltd. | Private Sector | 98.49% |
| 9 | Bajaj Allianz Life Insurance Company Ltd. | Private Sector | 98.48% |
| 10 | PNB MetLife India Insurance Company Ltd. | Private Sector | 98.17% |
Top 10 Life Insurance Companies in India with High Claim Settlement Ratios
Here, we have listed the top 10 Life Insurance Companies in India offering high claim settlement Ratios. Let’s look at them in detail on their features and life insurance companies’ claim settlement ratio.
1. Max Life Insurance Company Ltd
Life insurance claim settlement ratio: 99.35%
Max life insurance company Ltd is one of India’s leading companies, established in the Year 2000. The company’s main objective is to provide financial security to the policyholders with a wide range of life insurance policies. Life insurance policies offered by the company include child insurance, Long-term savings, protection, Investment, and group solutions. There are 269 offices of the company PAN India offering various insurance services to clients. The company offers the highest claim settlement ratio.
Key Highlights
- High Sum Assured
- Fast claim settlement
- Affordable rates
- Coverage for critical illness
- Facility for policy break in adverse conditions
- Multiple options for premium payments
2. Aegon Life Insurance Company Ltd
Claim Settlement Ratio: 99.25%
Aegon life insurance Company Ltd. is a partnership between Times Group and Aegon N.V. The company offered the policyholders the first online term insurance plan. A total of 720 claims were filed in Year 2022, and 713 were settled. It is listed under the popular Life Insurance Companies Claim Settlement Ratio. Aegon life insurance company offers various policies, such as term insurance. Unit- Linked Insurance and health insurance. The company has won awards such as “eBusiness Leader” and “Most recommended life insurance Brand” for outstanding performance.
Key Highlights
- High Sum Assured
- 100% Digital
- Various plans
- Fast claim settlement
- No spam calls to customers
3. Bharti AXA Life Insurance Company
Claim Settlement Ratio: 99.05%
Bharti AXA Life insurance company is a Paris- based firm and a strategic partnership between Bharti Enterprises and AXA Group. The company has 263 offices all over India, offering top-notch financial services to customers with the highest claim settlement ratio. The plans offered by the company include ULIP, retirement plans, child plans, and other traditional plans. The Airtel Payment Banks association with Bharti AXA has made premium payments easier for the policyholders. The claim settlement ratio of life insurance companies is 99.05%.
Key Highlights:
- Flexible coverage available with many riders
- Highly dedicated claim handler provided to each policyholder
- Affordable premiums
- Smart card for a policy summary
- 24/7 service available on WhatsApp
4. Life Insurance Corporation of India
Claim Settlement Ratio: 98.62%
The Life insurance corporation of India (LIC) is a government-owned company offering various insurance policies to clients. The company started operations in September 1956 and is one of India’s largest and oldest life insurance companies. The company offers term insurance policies, whole life insurance policies, endowment policies, and money-back policies with the highest claim settlement ratio. This company comes under the list of highest claim settlement ratios of life insurance companies.
Key Highlights:
- The policies are government guaranteed
- More than 33 crores customer base
- Faster claim settlement
- Affordable premiums with high coverage
5. Pramerica Life Insurance Company Ltd
Life insurance claim settlement ratio: 98.61
The Pramerica Life Insurance Company Ltd. offers various life insurance policies to individuals and groups. The company offers special coverage for every comrade in the armed services demand. Due to this service, the company offered the title of the honorary pride award of India in 2018.
Key Highlights
- High Sum Assured
- Suggestions by the industry experts
- Comprehensive range coverage under the life insurance policy
- Fast claim settlement
- Many options available for premium payments
6. Exide Life Insurance Company Ltd
Claim Settlement Ratio: 98.54%
Exide life insurance was formerly known as ING Vysya Life insurance company. The company was established on December 13, 2000. It is a commercial and non-governmental life insurance company, and its headquarter is situated in Bengaluru. With a broad customer base of 15 lakh customers pan India. The company has a nationwide network of 200 offices and 45,000 advisors.
Exide life insurance policies include savings, investments, retirement plans, etc. The distribution channel includes agencies, bancassurance, corporate agency, broking, and direct channels.
Key Highlights
- High Sum Assure
- Various plans
- Multiple payment options
- Fast claim settlement
7. Kotak Mahindra Life Insurance
Life insurance claim settlement ratio: 98.50%
The Kotak Mahindra Life Insurance Company was established in 2001 as a collaboration between Kotak Mahindra Bank Ltd and Old Mutual Ltd. It has over 229 branches in 129 cities in India. In 2022, the total claim filed was 7133, and the settled claims were 7049. The company is well known for its highest claim settlement ratio.
Key Highlights
- High claim settlement Ratio
- Multiple payment modes
- Active customer support
- High Sum Assured
8. Reliance Nippon Insurance
Claim settlement Ratio: 98.49%
The Reliance Nippon insurance company is a partnership between Reliance Capital and Nippon Life. It started operations in 2001 and has achieved over 10 lakhs customer base. It has made its place in India’s top non-bank-supported life insurance companies. Reliance Nippon insurance company offers retirement, protection, child, health, investment, and saving plans. The claim settlement ratio of life insurance companies is as high as 98.49%.
Key Highlights
- Multiple plans
- High Sum assured
- Easy premium payments
9. Bajaj Allianz Insurance
Life insurance claim settlement ratio: 98.48%
Bajaj Allianz is one of the popular insurance providers in the nation, established in 2001 after attaining a license from IRDA. The company collaborates with Bajaj Group’s Bajaj Finserv Limited and European financial services firm Allianz SE. There are over 80,000 agents and 509 branches of the company all over India.
Key highlights
- Riders option
- High Sum Assured
- Multiple insurance policies
- Add on options
10. PNB Met Life Insurance
Claim Settlement Ratio: 98.17%
PNB Metlife India insurance company was established in 2001, and the significant shareholders are MetLife International Holdings LLC, Punjab national bank Ltd., etc, and many private investors. 8586 claims were filed in the year 2022, and 8,357 were settled.
Key Highlights
- Long-term saving options
- Various insurance plans
- High Sum assured
- Flexible premium payments
How is Claim Settlement Ratio Calculated?
The claim settlement ratio is calculated by calculating the percentage of the total number of claims settled from the total number of claims received by a life insurance company in a particular financial year. Let’s take an example to understand this better. Suppose a life insurance company receives 1000 claims but processes or pays out for 980 claims; then, the claim settlement ratio of that company will be 98%. Remember, the higher the claim settlement percentage, the better that life insurance company. Fortunately, many life insurance companies in India have a relatively higher claim settlement ratio.
Understanding Life Insurance Companies Claim Settlement Ratio
The life insurance policy offers death benefits to the nominees if the policyholder dies. The amount will ensure their good lifestyle and safeguard them against financial challenges. However, there are various conditions where the claims get rejected. These are called “policy exclusions”. You must research about claim settlement ratio of insurance companies. On the other hand, many claims get rejection due to the policyholder, such as providing wrong information or misleading the company. There are various other reasons for the rejection of the policy from the company’s end, such as incompetence and no credibility.
The claim settlement ratio of insurance companies refers to the percentage of claims settled from the total filed claims. Knowing the claim settlement ratio of the company before buying the plan ensures that the company is credible and competent. Always choose the company with the highest claim settlement ratio.
Conclusion
It is essential for you to choose the companies according to the Life Insurance Companies Claim Settlement Ratio. It helps you to secure the future of your near ones after your death. You must take time to research about life insurance claim settlement ratio, solvency ratio, etc., of the company before buying the plan.
Best Life Insurance Companies in India – FAQS
How many life insurance companies are there in India?
Ans. IRDA authorizes 24 life insurance companies in India. However, you must consider the life insurance claim settlement ratio before choosing the company.
Please suggest to me some best life insurance plans.
Ans. The best life insurance plan varies according to your goals and needs. Many well-known companies offer life insurance, and you can research them and choose the best one according to your needs.
Why should I buy a life insurance plan from an insurance company?
Ans. The life insurance company offers security to your family and loved ones against the financial situation in case of your demise. Buying life insurance from a verified company ensures the highest claim settlement ratio.
