How much time it takes to settle life insurance claim?

In the last post I wrote about the Claim Settlement rate for Indian life insurance companies. This time I wanted to check how much time Life Insurance companies take to settle a claim!

Claim settlement time also becomes an important factor in choosing any life insurance as you don’t want your survivors to wait indefinitely or run pillar to post to claim the insurance money, but obviously I would place time taken to settlement of claim second to actual claim settlement ratio.

Below is the table showing the percentage claim settled in terms of number and value in 30 days, 60 days and so on.

The winner here is Reliance Life with more than 90% of claims settled within a month of claims made, which is awesome considering other companies. On the other hand LIC is able to settle only 60% of claims within a month which needs improvement.

Within 30 Days of intimation31 – 90 Days91 – 180 Days181 Days – 1 YearMore than a YearTotal Settlement
# of Policies Benefit Amount # of PoliciesBenefit Amount # of PoliciesBenefit Amount # of PoliciesBenefit Amount # of PoliciesBenefit Amount # of PoliciesBenefit Amount
Reliance Life96%92%2%5%1%2%0%1%0%1%3,20435
Canara HSBC60%70%40%30%0%0%0%0%0%0%50
Aviva66%63%18%20%10%11%4%4%2%1%1,03222
ICICI Pru78%62%14%22%6%13%2%3%0%0%9,298102
LIC60%60%20%20%12%12%7%7%1%1%5,64,3894,165
Birla Sunlife71%58%26%37%3%3%0%1%0%1%2,45759
Bajaj Allianz53%46%37%42%8%10%1%1%1%0%10,484174
SBI Life54%45%30%34%12%16%3%4%1%1%3,26247
Metlife43%38%31%30%19%20%5%11%2%1%42217
Kotak Mahindra39%35%32%36%25%25%3%3%1%1%1,00216
Tata AIG49%34%45%53%5%12%0%0%1%0%1,65228
IDBI Fortis25%32%58%42%17%26%0%0%0%0%120
HDFC Std48%23%30%38%14%22%7%13%2%3%2,54938
Shriram22%19%44%42%24%22%8%15%1%2%3124
ING Vysya18%15%36%42%29%33%14%9%3%0%1,18017
Bharti AXA22%15%51%54%26%31%1%1%0%0%1083
Max new York Life9%13%59%58%22%22%8%6%1%1%3,54567
Future Generalli12%11%65%56%24%32%0%0%0%0%171
Sahara1%1%6%11%15%13%44%41%34%35%1982
Aegon Religare No Claim settlement in 2008 – 09
 DLF PramericaNot Available in 2008 – 09
 Star Union Not Available in 2008 – 09
All Private57%46%29%37%10%13%3%4%1%1%40,739633
Industry Total60%58%20%22%12%12%7%7%1%1%6,05,1284,798

One thought on “How much time it takes to settle life insurance claim?

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