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What is LIC’s Claim Settlement Ratio in 2024-2025?
LIC continues to maintain strong claim-handling performance despite its massive customer base and high claim volume. In 2024–2025, the insurer recorded a Claim Settlement Ratio (CSR) of 98.15%, reinforcing its position as one of India’s most dependable life insurers. While a few private insurers have marginally higher settlement ratios, LIC’s consistency and scale make it a benchmark for reliability in the life insurance space. Overall, LIC’s average CSR for 2022–2025 stands at 98.35%.
When you buy a life or term insurance policy, one question matters more than anything else: Will the insurer actually pay the claim when my family needs it? That’s exactly where the Claim Settlement Ratio(CSR) becomes a crucial indicator.
For an insurer as large and widely trusted as LIC, this metric helps you understand how consistently it honours claims despite handling the highest claim volume in the country. In this guide, we break down the LIC Claim Settlement Ratio for 2024–25, its 5-year performance, and how it stacks up against other top insurers.
How to Calculate the Claim Settlement Ratio of LIC?
The infographic above explains what the Claim Settlement Ratio is and details the process for calculating it. You can simply refer to the same if you want to calculate the LIC Claim Settlement Ratio by yourself.
Where Can I Find The Claim Settlement Ratio for LIC?
You can check the LIC Claim Settlement Ratio from:
- IRDAI’s Handbook on Indian Insurance Statistics
- LIC’s Public Disclosures (Form L-40)
- Trusted comparison platforms like Ditto that regularly update the data from IRDAI
LIC Term Insurance Claim Settlement Ratio Over the Years
Here’s a snapshot of LIC’s CSR over the last five years:
Note: The Claim Settlement Ratio reported by IRDAI is not specific to term insurance alone. It is calculated for the entire life insurance segment, including term insurance, ULIPs, whole life plans, endowment plans, and other life insurance offerings. If you’d like to learn about LIC’s term offerings, we’ve covered them in our blog on LIC Term Insurance Plans.
How Does the LIC Claim Settlement Ratio Compare with Other Top Insurers?
Although the LIC Claim Settlement Ratio doesn’t raise any red flags in our view, to truly understand its standing, it’s important that we compare it with other leading life insurers in India.
Below is a ranking of the top 10 insurers based on their three-year average CSR from FY 2022 to 2025.
Even with a strong three-year average CSR of 98.35%, LIC narrowly misses the Top 10 Life Insurers list. That’s mainly because many private insurers now maintain CSR numbers above 99%, making the competition extremely tight at the top.
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What Does LIC’s CSR Mean For You?
Although LIC isn’t a partner insurer of Ditto, its Claim Settlement Ratio is undeniably impressive, especially considering the massive scale at which it operates. With a business volume of around ₹2,26,785 crore in 2024–25 and after handling death claims worth 20,793 crores, maintaining such a high CSR is a strong positive signal.
That said, CSR alone shouldn’t drive your decision. It’s equally important to consider other indicators, such as the amount settlement ratio (ASR), complaint volume, business volume, product portfolio, and solvency ratio, to get a complete picture of an insurer’s reliability.
If you want clarity on which term plan truly suits your needs, our experts at Ditto can help you compare options and make an informed, confident decision.
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