LIC tops claims settlement ratio

Mumbai: Life Insurance Corporation of India (LIC) continues to outperform private life insurers in settling individual claims even as its claim settlement ratio dipped to 97.79 per cent in FY19 compared to 98.04 per cent as at FY18. On the other hand, private players improved their claims settlement by settling 96.64 per cent of the total claims registered compared to 95.24 per cent in a year ago period. The industry’s claim settlement ratio marginally declined to 97.64 per cent in 208-19 from 97.68 per cent in the year ago period while the claim repudiation ratio decreased to 0.74 per cent compared to that of 1.10 per cent in 2017-18.

According to the Insurance Regulatory and Development Authority of India (Irdai) Annual Report 2018-19, life insurance companies paid 8.43 lakh claims on individual policies with a total payout of Rs 17365.30 crore. The number of claims repudiated were 6372 for an amount of Rs 539.14 crore and the number of claims rejected was 3697 for an amount of Rs 25.18 crore.

For LIC, the proportion of repudiations has come down to 0.43 per cent in 2018-19 compared to 0.67 per cent in the previous year. For private insurers the proportion of repudiations came down to 2.83 per cent when compared to that of 3.97 per cent in the previous year.