Top 10 Claim Settlement Ratio of Life Insurance

When you’re shopping for a term insurance plan, one of the first things people usually check out is the Claim Settlement Ratio (CSR) of a term insurance provider to ensure that they have approached a credible provider. It’s a popular metric that shows how often an insurance company actually pays out claims. But what does it really mean?

Think of it this way: a provider’s CSR gives a good first impression of an insurer’s reliability. However, it shouldn’t be the only thing you base your decision on. Other factors like the Amount Settlement Ratio (ASR), customer complaints, and the policy’s actual features matter just as much, if not more.

In this article, we’ll break down what CSR really tells you, explore the top 10 Claim Settlement Ratio of life insurance in 2025, and explain why relying on CSR alone won’t guarantee you the best policy.

Friendly reminder: It’s easy to get lost comparing policies and premiums. Instead of spending hours on it, why not get personalized insurance advice from Ditto? We offer free consultations with zero spam! Just book a call to clarify all your doubts.

Overview:

What is Claim Settlement Ratio (CSR)?

1. Definition and Meaning
   When you’re trying to figure out how reliable a term insurance provider is, the Claim Settlement Ratio (CSR) is usually one of the first things people look at. It’s a key metric that gives insight into how often an insurer pays out claims. In simple terms, it reflects their track record in honoring the promises they make to policyholders.

   For example, if a company has a high CSR, it generally means they have settled most of the claims they have received, which builds trust and gives potential buyers some peace of mind. After all, when you buy term insurance, the ultimate goal is to make sure your family gets the financial support they need if something happens to you. A strong CSR can help you feel more confident that the insurer will actually deliver when it matters most.

2. Importance of CSR for Policyholders
   1. Gives you a clear picture of the insurer’s track record: When you’re choosing a term insurance provider, one of the biggest things you want is the confidence that your claim—or your family’s—will be settled. That’s where the Claim Settlement Ratio (CSR) comes in. It shows how many claims the insurer has paid out compared to the number of claims they received. So, by looking at the CSR, you get a quick snapshot of how dependable they are when it comes to settling claims.
   2. Builds a strong reputation in the market: CSR isn’t just a number—it’s a big part of how an insurer presents itself to potential customers. Since most people check CSR while comparing plans, a score of 97% or higher can boost an insurer’s image. It shows they follow through on their promises, which helps attract more buyers.
   3. Gives peace of mind to policyholders: For someone buying a policy, seeing a solid CSR instantly builds trust. It reassures them that the insurer has a strong history of paying claims, which can make all the difference when making such an important financial decision.

How is the Claim Settlement Ratio Calculated?

The Claims Settlement Ratio (CSR) is calculated by comparing the number of claims an insurance company has successfully paid during a specific period to the total number of claims it was in a position to settle during that time. 

• This includes both new claims received and those pending from previous periods, 
• While excluding claims that were either unclaimed (where the policyholder didn’t complete necessary formalities) or still outstanding at the end of the period (these will be carried forward and included in the next year’s numbers). 

By focusing only on claims that were actionable and processed, CSR provides a clear picture of an insurer’s reliability in handling claims. The formula used to calculate CSR is:

Claims Paid during the Period / (Claims Outstanding at the Beginning + Claims Intimated during the Period – Unclaimed – Claims Outstanding at the End).

A higher CSR generally reflects stronger performance in honoring claims.

• A solid CSR is usually 97% or higher—that’s the sweet spot. 
• On the other hand, if a life insurer has a CSR below 90%, it’s advisable to steer clear. That kind of number can raise red flags about their reliability.

Now, while a high CSR adds to an insurer’s credibility, it shouldn’t be the only thing you rely on. If you’re selecting a policy solely based on CSR, you might miss out on better options. The more brilliant move is to look at CSR as just one part of the bigger picture—and we’ll get into how to do that in the sections below.

Data Sourcing: IRDAI Statistics Handbook and Public Disclosures

The IRDAI publishes details of the CSR of all registered life insurance companies in India. These reports, from the IRDAI Statistics Handbook and Public Disclosures, are a reliable source for assessing an insurer’s performance.

Top 10 Life Insurance Companies with the Highest Claim Settlement Ratio in India (2024)

Based on the latest IRDAI data, here are the top 10 Claim Settlement Ratio of life insurance with the highest CSR:

Source: Individual Insurer’s Public Disclosures (avg of 2021 to 2024)

1. Axis Max Life Insurance Co. Ltd.

   Max Life Insurance, a joint venture between Max Financial Services and Axis Bank, has built a strong reputation since its launch in 2000. It offers a well-rounded range of products, including term plans, ULIPs, savings, and health insurance.

   What makes Axis Max Life stand out is its blend of affordability, comprehensive coverage, and flexible customization through riders. It consistently maintains a high Claim Settlement Ratio, proving its reliability and focus on customer satisfaction.

   If you’re looking for a trustworthy insurer with solid term plans and a hassle-free claims process, Max Life is a top contender among the top 10 claim settlement ratio of life insurance.

   Best Term Insurance Plans: Axis Max Life Smart Term Plan Plus | Axis Max Life Smart Secure Plus Plan

   Ditto’s Take: Axis Max Life has seen several changes in ownership over the years, but that hasn’t shaken its performance. It consistently scores high on credibility, offers competitive premiums, and provides solid term plans with a strong lineup of riders. Thanks to this well-rounded offering, it earns the #1 spot among India’s top life insurers.

2. HDFC Life Insurance Co. Ltd.

   HDFC Life Insurance, one of India’s leading private insurers since 2000, offers a wide range of products including group policies, ULIPs, savings plans, and term insurance. Known for its excellent Claim Settlement Ratio, low complaint volume, and strong Amount Settlement Ratio, HDFC Life stands out for its operational efficiency.

   While its plans are slightly more expensive than others, the comprehensive coverage and reliable service make it a solid choice. If you’re willing to pay a bit more for a credible and well-established insurer, HDFC Life is a great option as one of the top 10 claim settlement ratio of life insurance.

   Best Term Insurance Plans: Click2Protect Super | Click2Protect Elite Plus | Click2Protect Ultimate

   Ditto’s Take: HDFC Life may show room for improvement in its affordability, but it more than makes up for it with comprehensive & customizable term plans. With a solid product lineup, it earns a well-deserved spot among India’s top 10 life insurers.

3. Bajaj Allianz Life Insurance Co. Ltd.

   Bajaj Allianz Life Insurance, launched in 2001 as a joint venture between Bajaj Finserv and Allianz SE, quickly built a strong reputation in the Indian market. Thanks to its credible backing and a diverse portfolio, which includes savings plans, ULIPs, retirement, and term insurance, it remains a well-known name in the industry.

   The insurer stands out for its solid Claim Settlement Ratio, strong Amount Settlement Ratio, and low complaint volume, reflecting its reliability and focus on customer satisfaction. Its term plans, in particular, strike an outstanding balance between affordability, high coverage, and customisation through optional riders.

   While Bajaj Allianz offers excellent value, it’s still a good idea to compare it with other providers. You may find similar pricing with additional features elsewhere, so take a moment to explore before making your choice.

   Best Term Insurance Plans: e-Touch II | iSecure II

   Ditto’s Take: Bajaj Allianz Life stands out as one of the most affordable term insurance providers. Its wide product range, competitive pricing, and strong rider options help offset a slight dip in its ASR. With credibility metrics improving each year, it earns a well-deserved spot in India’s top 10 claim settlement ratio of life insurance.

4. TATA AIA Life Insurance Co. Ltd.

   TATA AIA Life Insurance, a joint venture between TATA Sons and AIA, has been a leading life insurer in India since 2001. Offering a wide range of products—term insurance, ULIPs, retirement plans, and savings policies—it combines affordability with comprehensive coverage.

   Known for its customizable riders and solid reputation, TATA AIA is trusted for its innovative products and reliable service. The insurer’s term plans, backed by the strong TATA brand, continue to be a popular choice for families seeking financial security.

   Best Term Insurance Plans: Sampoorna Raksha Promise | TATA AIA Maha Raksha Supreme Select 

   Ditto’s Take: TATA AIA Life stands out with a wide range of plans tailored to different income levels and coverage needs. Backed by strong credibility metrics and competitive premiums, it secures the 4th spot among India’s top 10 claim settlement ratio of life insurance.

5. Aditya Birla Sun Life Insurance Co. Ltd.

   Aditya Birla Sun Life Insurance, founded in 2000 as a joint venture between India’s Aditya Birla Capital and Canada’s Sun Life Financial Inc., has become a household name in the life insurance space. Backed by two financial powerhouses, the company offers a wide portfolio of products, including term plans, ULIPs, child plans, critical illness covers, endowment plans, and retirement solutions.

   Over the years, Aditya Birla Sun Life has built a strong reputation, thanks to its solid Claim Settlement Ratio (CSR), high Amount Settlement Ratio, and low complaint levels. These performance indicators speak volumes about the insurer’s reliability and customer-centric approach.

   Best Term Insurance Plans: Salaried  Plan | DigiShield | Income Suraksha

   Ditto’s Take: Aditya Birla Sun Life ranks 5th among India’s top 10 claim settlement ratio of life insurance, thanks to strong performance across ASR, CSR, complaint volume, and business consistency. Its low complaint volume is a clear strength that sets it apart.

6. Kotak Mahindra Life Insurance Co. Ltd.

   Established in 2001, Kotak Life Insurance has grown steadily to become one of India’s most trusted insurers. With an average premium collection of over ₹7,489 crores between 2021 and 2024, it ranks among the top five life insurance providers in the country.

   Kotak Life offers a wide range of products — including term plans, savings and investment options, retirement solutions, and ULIPs — designed to meet various financial goals. Its consistent track record in Claim Settlement Ratio (CSR), Amount Settlement Ratio, and low complaint volumes speaks volumes about its reliability and customer service efficiency.

   From a trust and service perspective, Kotak Life scores high. The company is known for its operational transparency and client-first approach.

   However, when it comes to term insurance, the options are somewhat limited. While the available plans are reliable, they often lack the flexibility and variety of riders that today’s buyers are looking for. If you’re specifically in the market for customisable term insurance with added value features, it’s worth comparing a few other providers to ensure you’re getting the best fit.

   Best Term Insurance Plans: Kotak e-Term | Kotak Term Plan | Saral Jeevan Bima

   Ditto’s Take: Kotak Life may not shine in terms of comprehensive plans or rider options, making it a less compelling choice for term insurance. However, backed by the strong reputation of the Kotak brand, it remains a credible and stable player in the industry.

7. Life Insurance Corporation of India: 

   LIC, India’s largest public-sector life insurer, has been a trusted name since 1956. It offers a wide range of products—term plans, endowments, ULIPs, pensions, and more—backed by decades of experience.

   While LIC still appeals to older generations, it hasn’t kept pace with the needs of millennials and Gen Z, who often prefer more modern, flexible, and cost-effective options. Its higher premiums and dated product features have pushed many younger buyers to look elsewhere.

   That said, LIC continues to excel in claim settlement. With a consistently high CSR and a long-standing reputation, it remains a dependable choice, especially if reliability is your top concern.

   Best Term Insurance Plans: New Tech Term | Digi Term | Saral Jeevan Bima 

   Ditto’s Take: LIC may not match private insurers in product variety or features, but it still ranks among India’s top life insurance providers. Its long-standing reputation and history as the former sole player in the market give it unmatched credibility. That said, while our experts still place LIC at 7th place, we don’t recommend its term plans. Operational inefficiencies and limited add-on options make its term products less competitive.

8. PNB MetLife India Insurance Co. Ltd.

   Founded in 2001, PNB MetLife Insurance is a joint venture that brings together the strengths of Punjab National Bank, J&K Bank, MetLife International Holdings, and the M. Pallonji Group. Over the years, the company has developed a well-rounded portfolio that includes offerings such as term plans, child education policies, savings plans, retirement solutions, and more. With an average annual business volume of approximately ₹7,524 crores (avg of 2021 – 2024), it is clear that the insurer has a strong market presence.

   On paper, PNB MetLife does well — its Claim Settlement Ratio and Amount Settlement Ratio are fairly solid. However, one area that stands out for the wrong reasons is its high volume of complaints. These points to possible gaps in customer service or claim handling that prospective buyers should be mindful of.

   Best Term Insurance Plans: PNB MetLife Mera Term Plus Plan | Aajeevan Suraksha Plan | PNB MetLife Saral Jeevan Bima 

   Ditto’s Take: PNB MetLife is steadily building its credibility, but as a public sector insurer, it still faces challenges. A very high complaint volume and less comprehensive term plans position it at 8th on our list of top 10 claim settlement ratio of life insurance.

9. SBI Life Insurance Co. Ltd.

   SBI Life commenced operations in 2000 as a joint venture between the State Bank of India (SBI) and French financial institution BNP Paribas Cardif. The insurer’s brand equity earned it a well-founded reputation as a life insurer, offering a diverse range of financial products, including life insurance policies, insurance plans with wealth creation, retirement plans, and more. The insurer is listed on the stock exchange, has a strong presence thanks to the bancassurance network of SBI branches, and hence, its credibility is also well established.

   Best Term Insurance Plans: eShield Next | SBI Life Smart Shield | Saral Jeevan Bima 

   Ditto’s Take: SBI Life, like LIC, faces some operational and post-sales support challenges typical of public sector insurers. Its term plans lack comprehensive features, but strong brand equity and credibility keep it popular. That’s why it holds the 7th spot among India’s top life insurers.

10. ICICI Prudential Life Insurance Co. Ltd.

    ICICI Prudential Life Insurance, a joint venture between ICICI Bank and Prudential Plc, has been a leading insurer in India since 2000. Offering a range of products like savings plans, retirement policies, ULIPs, and term insurance, it boasts an average business volume of ₹17,198 crores (avg of 2021 – 2024).

    While its plans are affordable, there is a lack of customization in terms of its riders. However, the comprehensive coverage makes ICICI Prudential a solid choice for policyholders seeking flexibility and reliability.

    Best Term Insurance Plans: iProtect Smart | Iprotect Super

    Ditto’s Take: While the insurer offers a fair range of term plans, it falls short on key add-ons like Waiver of Premium and disability payouts. As a result, it remains in India’s top 10 life insurers but doesn’t make the cut for the top 5.

Key Factors Affecting Claim Settlement Ratios

Several factors influence an insurer’s CSR:

• Claim Processing Efficiency
  CSR doesn’t reflect how quickly a claim is settled — just whether it was settled. That said, insurers with efficient systems often handle more claims in less time, naturally increasing their annual claim settlement count. Faster processing = higher CSR.
• Honest Disclosure by Policyholders
  A lot rides on the information you share. When policyholders are transparent about their medical history, occupation, lifestyle habits, and other personal details, the insurer is better equipped to assess risk and more likely to honour claims. Fewer rejections mean better CSR.
• Clear Documentation Requirements
  Often, claims are delayed or denied simply because of missing paperwork. Insurers that communicate the list of documents required during a claim help policyholders submit all necessary information correctly. This improves claim success rates and enhances customer satisfaction.
• Financial Strength of the Insurer
  An insurer’s financial health matters — a lot. A financially stable company is better equipped to settle claims, especially during periods of high claim volume. Look for insurers that consistently show strong solvency ratios and profitability.
• Strong Underwriting Practices
  Good underwriting helps insurers accurately assess each applicant’s risk. This ensures that only well-evaluated policies are issued, which in turn lowers the chances of disputes at the time of claim. The result? A cleaner, stronger CSR.
• Solid Fraud Detection Systems
  Unfortunately, insurance fraud is real. However, insurers that invest in smart fraud detection — utilizing technology and experienced claim assessors — can identify and weed out false claims early. This protects the system and ensures genuine claims are settled swiftly, maintaining a high CSR.

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Types of Life Insurance Claims

When you buy a life insurance policy, you’re essentially securing financial support for yourself or your loved ones, depending on the type of plan. But when it’s time to make a claim, it’s important to know what kind of claim applies to your situation.

Let’s break down the main types of life insurance claims you might come across:

1. Death Claim

This is the most common type of claim — and probably the reason most people buy life insurance in the first place.

What is it?

Filed by the nominee or family of the policyholder after the policyholder’s demise during the policy term.

What’s needed?

• Standard documents for all death claims
• Original policy document, 
• Death certificate, 
• Identity/address proofs of the nominee, and 
• Sometimes hospital records if death was due to illness
• Additional documents for unnatural deaths 
• Policy FIR, 
• Panchana and 
• Autopsy in case of unnatural deaths

Why it matters:

A smooth death claim process ensures the family receives the sum assured to manage expenses and maintain financial stability during a tough time.

2. Maturity Claim

This is relevant for policies like endowment plans, money-back policies, or whole life plans that come with a savings or investment component.

What is it?

If the policyholder survives the entire policy term, they’re eligible to receive the maturity amount, including bonuses (if applicable).

What’s needed?

Policy document, ID proof, and sometimes a discharge form sent by the insurer.

Why it matters:

It’s essentially your insurance plan turning into a payout, like a return on your long-term savings.

3. Rider Claim

Riders are additional covers you attach to your base life insurance policy, like a safety net for specific events.

Examples of rider claims:

• Critical Illness Rider (Highly Recommended): Think of this as a financial cushion when life throws a health scare your way. 

If you’re diagnosed with a listed critical illness (like cancer, heart attack, or kidney failure), your insurer gives you a lump sum payout. You can use it however you need — for treatment, recovery, or even just to stay afloat financially. 

There are two types: 

1. Standard Critical Illness Rider: You get the payout without affecting your main life insurance cover. So, your family still gets the full sum assured later. 
2. Accelerated Critical Illness Rider: The payout comes out of your main life sum assured. It’s faster but leaves less for your family later. 

(Pro tip: Top policies cover anywhere between 30 and 64 illnesses.)

• Waiver of Premium Rider (Essential): If you’re diagnosed with a critical illness or suffer a permanent disability, you may not be able to continue working and paying premiums. This rider waives all future premiums, but your policy stays active. That means you stay protected, even if you can’t afford to pay anymore. This one’s a must-have.
• Accidental Total and Permanent Disability Rider: This kicks in if an accident leaves you permanently disabled (like losing limbs or vision). Depending on your plan, the insurer will either: 

1. Waive off future premiums, or 
2. Pay a lump sum to support your financial needs. 

Some insurers also bundle this with other riders like Critical Illness or Income Benefit. Either way, it provides much-needed support when life hits hardest.

• Life Stage Benefit Rider: Life changes fast — marriage, kids, a home loan — and so should your insurance cover. This rider lets you increase your sum assured at key life stages without fresh medical tests. Perfect for keeping your family’s protection in step with your growing responsibilities.
• Accidental Death Benefit Rider: For frequent travellers, entrepreneurs, or those with high-risk jobs, this rider is a smart choice. If death occurs due to an accident, your nominee receives an extra payout over and above the base sum assured. It’s a financial buffer for your loved ones when the loss is sudden and unexpected. But not everyone may need this, as the base term plan already covers death due to accidents.
• Increasing/Decreasing Cover Options: 

1. With the Increasing Cover Rider, your sum assured rises every year, helping you stay ahead of inflation and growing financial needs. But these come at higher costs.
2. The Decreasing Cover Rider, on the other hand, gradually reduces your coverage, which we don’t recommend, even if your dependents become financially stable. Inflation still affects long-term needs, especially for your spouse

4. Surrender Claim

Sometimes, you may want to exit the policy before the term ends.

What is it?

You voluntarily cancel the policy and get a surrender value (only applicable to some plans after completing a minimum term).

Why it matters:

It gives policyholders flexibility, but also involves a trade-off — the amount received is usually lower than the maturity benefit.

5. Annuity Claim (in Retirement Plans)

For pension or retirement-oriented life insurance plans.

What is it?

After a certain age, the policyholder starts receiving regular income (annuity). If the policyholder passes away, the nominee may get a death benefit or return of purchase price (depending on the plan).

Why it matters:

These claims are all about retirement income or legacy planning.

Claim Settlement Process for Life Insurance

STEP 1: Inform the Insurance Company

The first step is to notify the insurer about the claim — the sooner, the better.

This can be done online, by visiting the nearest branch, or through the insurer’s customer support helpline.

In case of death claims, the nominee should ideally inform the insurer within 24–48 hours.

STEP 2: Submit the Required Documents

After informing the insurer, you’ll need to submit a set of documents. Here’s what is usually required:

1. For Death Claims: 

• Death certificate (original or attested) 
• Policy document Claim form (available on the insurer’s website or at the branch) 
• Identity & address proof of the nominee 
• Medical records (if applicable) 
• FIR/postmortem report (in case of accidental death)

2. For Maturity Claims: 

• Original policy document 
• Discharge form (provided by the insurer) 
• ID and address proof 
• Bank details for payout

STEP 3: Claim Verification by the Insurer

Once documents are submitted, the insurer begins verification. They may:

• Cross-check medical records
• Validate nominee details
• Investigate (if needed) in case of accidental or early death claims

This step ensures the claim is genuine and error-free.

STEP 4: Claim Decision & Payout

If everything is in order, the insurer will approve the claim and release the payout.

As per IRDAI guidelines, a claim must be settled within 30 days of receiving all necessary documents.

If further investigation is needed, it should be wrapped up within an additional 90 days (total 120 days), and the decision communicated.

Please note: In case there is a delay in settling claims on the insurer’s part (i.e., the insurer pushes the window of time pre-set by the IRDAI for settling life insurance claims), the provider is liable to pay interest (pre-decided by the IRDAI and mentioned in the policy document) on the base sum assured to the claimant.

STEP 5: Payment to the Nominee/Policyholder

The approved claim amount is directly credited to the nominee’s or policyholder’s (for maturity) bank account.

You can track the status of your claim via:

• Insurer’s official website/app
• Customer care helpline
• Email/SMS alerts

Documents Required for the Life Insurance Claim Process

To ensure a smooth claim process, the following documents are typically required:

• Death Certificate: Official proof of the policyholder’s demise.
• Policy Document: Original policy or a copy.
• Identity Proof: Aadhaar card, PAN card, etc.
• Medical Records: In case of death due to illness.

Note: Specific requirements may vary by insurer.

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Common Reasons for Life Insurance Claim Rejections

Life insurance gives your family financial peace of mind. But that peace can be shaken if a claim gets rejected, especially when your loved ones are counting on it.

The good news? Most claim rejections happen due to avoidable mistakes. So, let’s break down the most common reasons for life insurance claim rejections and how you can steer clear of them.

1. Non-Disclosure of Medical History or Lifestyle Habits

One of the top reasons claims are denied is withholding or misrepresenting information during policy purchase, like:

• Pre-existing health conditions
• Smoking, drinking, or drug habits
• Risky hobbies or occupations

2. Incorrect or Incomplete Information in the Application

Even minor errors in your name, date of birth, or nominee details can cause confusion and result in claim delays or rejection.

3. Lapsed Policy Due to Missed Premiums

If you miss paying premiums and your policy lapses, any claims made during that period will likely be rejected.

4. Claims Filed for Excluded Causes

Every policy comes with a list of exclusions — specific scenarios in which the claim will not be paid. Common exclusions include:

• Death due to suicide (within the first year)
• Participation in hazardous activities not declared earlier
• Death due to intoxication or criminal acts

5. Delay in Filing the Claim

While most insurers have a generous claim window, unnecessary delays in informing the insurer can complicate things, especially if documents are missing or hard to retrieve later.

6. Missing or Invalid Documents

Incomplete paperwork can stall or even stop the claim process. Common issues include:

• Missing death certificate
• Incorrect nominee ID proofs
• Lack of supporting medical or legal documents

How to Avoid Life Insurance Claim Rejection

To ensure a hassle-free claim process:

1. Be 100% Honest During Application

Disclose everything — your medical history, lifestyle habits (like smoking or drinking), occupation, and any pre-existing conditions.

2. Fill in the Application Form Yourself

It’s tempting to let your agent do it, but this can lead to mistakes.

3. Pay Premiums on Time

A lapsed policy means no coverage, and any claim made during that time will be rejected.

4. Update Your Nominee Details Regularly

Marriage, divorce, childbirth — life changes, and so should your policy records.

5. Know the Policy Exclusions

Most life insurance policies don’t cover specific causes, like death by suicide in the first year, drug overdose, or risky hobbies (unless declared).

6. Inform the Nominee About the Policy

Many claims are delayed simply because family members are unaware of a policy’s existence or the location of the documents.

7. Submit All Required Documents Promptly

A claim can’t be processed without proper paperwork. Common documents include:

• Death certificate (for death claims)
• Medical records
• ID and address proof of the nominee
• Policy document

Factors to Consider Before Buying Life Insurance Based on CSR

When it comes to choosing a life insurance policy, Claim Settlement Ratio (CSR) often tops the checklist — and rightly so. It tells you how usually an insurer honours claims, giving a sense of how reliable they are when your loved ones need support.

But here’s the thing: CSR alone isn’t enough to judge a life insurance provider.

Let’s explore what CSR means — and what other important factors you should also keep in mind before choosing the right policy.

1. What Does CSR Tell You?

Claim Settlement Ratio = (Total claims settled / Total claims received) × 100

Therefore, if an insurer receives 100 claims and settles 98, its CSR is 98%.

2. Check the Amount Settlement Ratio (ASR)

CSR counts the number of claims settled, not the amount of money paid out.

Some insurers may settle small claims quickly but take longer with high-value ones. That’s why the Amount Settlement Ratio (ASR) matters — it shows the percentage of the claim amount paid versus received.

3. Understand the Claim Rejection Reasons

A high CSR is good, but it’s wise to understand why claims get rejected in the first place.

Rejections may happen due to:

• Incorrect or incomplete information
• Non-disclosure of health issues
• Lapsed policies

4. Consistency Over the Years

One great year doesn’t make an insurer trustworthy. Look at their CSR over the last 3–5 years to check for consistency.

5. Ease and Speed of Claim Settlement

CSR tells you if claims are settled. But what about how fast?

Choose insurers with a reputation for hassle-free and speedy claims, ideally settling within 30 days, as per IRDAI norms.

6. Rider Options and Policy Flexibility

Even if CSR is high, the policy should also suit your needs. Look at:

• Coverage flexibility
• Riders like Critical Illness, Accidental Death, Waiver of Premium
• Premium payment terms

7. Customer Support & Claim Assistance

In stressful times, your nominee needs a responsive support team.

Conclusion

Selecting one of the top 10 claim settlement ratio of life insurance is essential for ensuring that your loved ones receive the promised benefits without hassle. While CSR is a significant indicator, it’s equally important to consider other factors like policy features, premiums, and customer service.

By making an informed choice, you can secure a policy that not only offers financial protection but also provides peace of mind knowing that your insurer is reliable and efficient.

Frequently Asked Questions (FAQs) 

Disclaimer

The details, facts, or figures provided in this article are based on publicly available sources, including IRDAI reports. Readers are advised to verify the latest information from official insurance company websites before making financial decisions. We do not promote or endorse any specific insurance provider.