IRDA Claim Settlement Ratio 2012-2013-What it indicates?

IRDA recently (1st January 2014) released it’s Annual Report for 2012-13. This report indicates the overall Insurance Industry data. Here in this post I am only concentrating on IRDA Claim Settlement Ratio for 2012-13. This report is till 31st March 2013.

Note-IRDA claim settlement ratio for 2013-14 is available at “IRDA Claim Settlement Ratio 2013-2014-Which is best Life Insurance Company?

When anyone buying insurance product then their major concern is what was the claim settlement ratio of Insurance Company. It is just one indication about how the company is treating it’s customer. You must look into this data, because insurance is a long term contract between insurance company and insured. But do remember that this must not be the deciding factor while choosing your insurance plan.

In below report I tried to colour in three different categories. First colour (green) is for the companies whose claim settlement ratio stands more than 90%, second colour (yellow) for 90% to 80% and third colour (red) for companies whose claim settlement ratio stands below 80%.

I also tried to differentiate how fast they settled the claims. To identify this I divided the claims into three categories, first for less than 30 days, second for more than 31 to less than 90 days and finally claims settled after 90 days. This data indicates how fast is your insurance company when actually resolving the death claims.

Latest News (17th May 2014) !!!

LIC launched it’s first online term plan. Review will be available here “LIC’s online Term Plan e-Term-Review and Benefit

Source: IRDA Annual Report 2012-13
Source: IRDA Annual Report 2012-13 (

Also interesting point to note that from above 24 Life Insurance Companies 17 companies reported profits for year 2012-13. They are Aviva Life, Bajaj Allianz, Birla Sunlife, Canara HSBC, HDFC Standard, ICICI Prudential, IDBI Federal, ING Vysya, Kotak Mahindra, Max Life, PNB Metlife, Reliance Life, Sahara India, SBI Life, Shriram Life, Tata AIA and LIC.

Hope above points will be useful for you in deciding your buying of life insurance product. But I am once again stressing that one must not solely depend on Life Insurance company’s claim settlement ratio while buying.

165 Responses

  1. HI

    I am 43 and my wife is 40 years old. we both bought 12 year lic endowment policies. total premium yearly comes to 450000 . i only want to know what is the exact commission my agent is making out of me .
    and what is the ammont i shoud and can ask hin to return back to me from the first year commission??

    kindly advise me
    VIPul shah.

      1. Hi so you are saying let the agent make the entire 25% of 1 St year.. And 7.5% of 2& 3 rd year. He earns and runs his house on my premium. Is there a law or file a complaint against him??


          THERE IS A SAYING ” BOLE NA BOR VACHAEY” in gujarti.. means only if you ask then only you get the money back…. so i would recommend all you first time people buying POLICIES please ask your agent for the first year commission on the premium back… if you demand then they give you back… donnt be scared and its not ILLEGAL TO ASK FOR YOUR OWN MONEY… THEY ONLY DESERVE (5%) AFTER ALL …. HAHAAHAHAHA

            1. sir , i am actually writing back… stop bullshiting this line to everyone… even your commission which you have been taking from innocent first timer is now gonna cease to exist… i am starting a new platform to make people aware in my city and in my aera to take back first year commission back… THE AGENTS DO NOT DESERVE IT….

  2. Hi Basavaraj,

    I am planning to take a insurance policy for 15 yrs term may be Rs.50,000 / year . I contacted Bharathi Axa life insurance long term plan. The plan says the following details , Please suggest me if I can go with Baharathi Axa life insurance or not.

    Its 15 years Term

    10 yrs payment and from 11th year I get the pay out or I can choose to get total pay out in 15th year.
    They say appox I may around 9 + lakhs as returns. It has death benefits also like the sum assured will be given as soon as the person dead and in the term end period another sum assured and the bonus and 125 % payout.

    I taking this policy for my son , he is 6 months old . So I need make some benefits for his future studies etc.

    Can you please advise me , if I can go with Bharathi Axa or please suggest me a good plan or company to go with.

  3. Hi Basavaraj,

    I am planning to buy a term plan for 1cr. I am 28 old non alcoholic & non smoker. But i have all my colleagues & friends who are chain smokers from whom i inhale the smoke all the time when i go out for a break with them. So, do this impact my medical checkups at the time of purchasing the term plan or later at the time of claim settlement if i continue with this inhaling?

  4. I have just purchased Max life online term insurance for 1cr .It is free look up period.But some one is saying hdfc is gud.Tell me should i continue with Max or return the policy

  5. sir i have relience term policy of 1 cr when i saw irda annual report 2013-2014 it is claim paid performance 86%, in future is that faithful to contunue

    1. Somanath-No one know one death claim arrives in your case then you will fall in that 86% or in rest of 14%. Also, who knows which claims they rejected, whether all rejected 14% are term insurance or endowment plans. Hence, no need to scratch your head. If you declared all facts properly, then continue it.

  6. Hi..My husband is 30 years old and we want to take a term insurance for him. He is a non alcoholic and a non smoker. Please suggest if
    1. We should take a single term policy til 75 yrs of age or two term insurances(one now and the other one at middle age like 45 around) ?
    2. Term insurance for aegon religare is the least expensive option available. Should we go with this policy or there is some flaw ?

    Would be really helpful if you suggest us the best option.


  7. Sir,
    I hv i-term plan of Aegon Religare for SA 1 cr. with rs. 14193 premium p.a. since last three years. and its annual premium is due in this month.
    Right now my age is 39 running.
    1)Looking to claim settlement ratios of the insurance companies, i don’t wish to continue with Aegon Religare due to its poor CSR. whether my decision is right or what ?
    2) if i switch to other companies , as per CSR, LIC could be a good potion but its premium is very high compares to other companies. almost more than twice. so which should i opt for ?
    3) Should i split my risk cover in more than one companies ? if yes, what should be the proportion ?

    Pls reply.

  8. Hi Basavaraj,

    My name is ramdas, 4 years back my father has started insurance policy in “Aviva term policy(10 lakhs assured)” when his age is 49 years. Recently my father has expired(natural death).

    When he is started insurance that time he is having small provision shop. With that income he has paying the insurance installments. he has closed the provision shop 2 years back as he got the paralysis to his left side body. becuase of that i am paying his premium installments.

    Now please suggest me that how can I claim the insurance.

    Thanks & Regards

    1. Hema-You can visit the branch of Insurer with original policy document, death certificate and nominee address proof, PAN Card and cheque leaf. For further information, I request you to contact Aviva.

  9. Hi Basavaraj, I have taken 2 HDFC life policies (1 in year 2010 for Rs. 24000/year & 1 in year 2013 for Rs. 50000/year) and both of them have been sold with false commitment. I have just received the policy documents for both the policies 15 days back. I have requested them to give me policies for which I have to pay for 3-4 years only, but on later stage through their online account, I came to know that they have sold the products whose premium payment term is 11 years. Now, nobody is listening to me. It’s a clear case of cheat sir. I am crying in front of them every time. PLEASE HELP ME WITH YOUR ADVISE FOR FURTHER COURSE OF ACTION SIR …..

    1. Pradipta-It is a clear case of mis-selling. Write a letter to HDFC stating the person who sold it wrongly to you. Mention that if they not heed then you go ahead with complaining to IRDA. Let us see what they reply.

  10. Hi Basavaraj, If I have two life insurance policies with different companies and for different amounts, will both get paid in eventuality of death or is there a rule that says only the higher sum assured will be paid?

  11. Hi Sir, I would like to take term insurance policy for 1Cr.
    I have following queries :
    1. Is it good option to go for single payment or yearly payments ? and why?
    2. Which is better to opt – HDFC protect 2 click , LIC or SBI?
    Plz ….

    1. Devi-In my view single payment is best. Reason is, suppose after few years you are not able to pay the premiums due to loss of job, bedridden health issues then you will be out of any life insurance. But for comfort of payment and as term plans are not costly, I prefer yearly payment. All are best, you choose based on your affordability and features you like. No such hard research required.

  12. i have bought an aegon religare termplan for 50 lakh. first time when i had purchased the same plan from the religare one information (alcohal assumption) entered wrong. then i cancelled that policy and purchased the same policy again but this time i didn’t mention alcohal consumption in my praposal form (because i consume 1 bottle of beer once in a six month). i have gone through medical test from aegon. will this alcohal consumption information not availability in second policy impact at the time of claim. what should i do ?

  13. Dear Basavaraj Tonagatti Sir,

    Thanks for providing guidance and solving queries here on this site.

    I am 30 yrs old and have bought 45yrs term plan (i.e. till 75 yrs age) of 75 lacs at 7718/- from Aegon religare. And on website of aegon religare they are showing 89% of claim settlement; while today one of hdfc representative brought to my notice that at irda website or on other links (which are not shared by aegon representatives), Aegon’s claim settlement is around 60% only.

    I would like to know whether it is correct or not? As i tried to search on IRDA site, i ‘m unable to search and in handbook is of 2010-11.

    Can u please share the valid data and also share the procedure for policy cancellation.
    For quick response please mail or msg me.

    Thanking you,
    with due regards,
    Ravi Lalwani
    [email protected]

  14. sir
    My age is 44 years .I want to buy term insurance of 50 lacs
    Cover shall be till I attain 75 yrs of age
    Which plan is best among LIC,HDFC,ICICI

    1. Dear Nitin,

      You may consider our online term plan?? ICICI Pru iCare II or also look at our other online term plan iProtect (Link: Here are few points for your consideration:

      1) ICICI Prudential Life’s claim record: We are committed to honour all claims quickly and fairly. As per IRDA’s annual report for FY14, ICICI Prudential Life Insurance Company’s claims settlement ratio is one of the best in the industry at 94.1%

      2) With iProtect, you have the advantage of a lower premium if you do not consumer tobacco. With iCare II you have the advantage of no medical test if you are age is 50 years or less and you opt for a cover of up to Rs. 1 Crore. You also have the option of paying premiums monthly, half yearly or annually.

      If you need more details on either iProtect or iCare II, you can fill your details here and we will have one of our experts contact you to assist you with your queries.

      Please understand that we only offer suggestions based on your requirements, however choosing a policy most appropriate for you remains at your discretion.

      ICICI Prudential Life Insurance

  15. Hi Basavraj,

    Could you le me know CSR and solvency ratio of MAX-Life, Aegon iTerm and Aviva iLife for last 3 years.
    I could find only for year 2012-13. Especially I am looking for 2013-14 ratio.


  16. Hi Sir,

    I am 32 year old and planning to take Term end policy. Already I have checked your complete blog and my almost queries have been closed. However Just want to check one more thing. Rather than taking one big amount of term insurance from one company, I have decided to break in 4 part in between following companies. Can you please suggest, is it correct or not.

    1. LIC
    2. HDFC click to protect plus
    3. Sbi
    4. Max Life.

    These above mentioned companies are high claim settlement ration. Kindly share your things on this.

    Rakesh Gupta

  17. According to my experience with insurance company like ICICI Lombard, most of claims they rejects on stupid grounds,
    they start working on finding faults to reject claims, there claim officers are working very hard to reject claims.

    According to me invest in Fixed deposit, One day that deposit will work for your loved ones, this companies are untrusted. specially in India, do not believe in insurance.

    100 mein se 80 baiman phir bhi mera bharat mahan.

  18. I was reading your old article today. Very informative.
    Yesterday I heard about the sad death of a person in Chennai. He was aged 48, working in the insurance sector with a 10 lakhs annual salary. The total life insurance for him was 3 lakhs under an endowment policy. His wife is house wife and is having 2 children still studying. Now the family is in financial trouble. I think the awareness about term plan is lacking and people feel it a loss of money while it is a great thing to do by all who have a family.

  19. Hello Basavaraj,
    I have a Tata AIA Term insurance for a 40 years term period, holding it for the past one year. Its a 1 Cr cover for my current age of 33 and annual premium of Rs 9600. I have declared all details correctly while buying this policy.
    Recently, I have come across one product from HDFC Life for the cover of 1 Cr, annual premium of Rs 15000, payment paying term- 40 years.

    1) Looking onto the Claim settlement ratio and also the product features, is it advisable for me to buy this HDFC Life insurance for 1 Cr (Premium – Rs 15000) and close the Tata AIA(Premium – Rs 9600) ?
    2) Or shall I continue with my existing 1Cr Tata AIA policy and buy an additional 50 lakh HDFC Life (Premium – Rs 8000) policy?

    Awaiting your response.
    Sanjay Kumar

  20. Hi,

    You have repeatedly mentioned that if all info is disclosed correctly then there is nothing to worry irrespective of which company one chooses for term insurance. If that were so, why would there be such a huge variation in claim settlement ratios? It cant be that profile of customers vary so drastically across companies – cant be that wrong info cases and non-genuine claims are to the tune of 30% + in Aegon and 3% in ICICI for instance.


  21. Sir,
    i hav few doubts abt term plan.plz guide.

    1.can we change nominee after few days?

    2.when we take policy, we provide income proof but some one private job guy lost job afterwards (i.e.loss of income) because of performance or other normal rezone and suddenly he died then his family will get full sum assured or what?bcz at death he was not earning member.

    3.taking rider with term plan is good or taking separate accident policy is good.

    4.which company provide insurance total permanent disability,partial permanent disability,total temporary disability cover.plz reply.

    1. Sandip-1) Yes you can change nominee at any time during policy period. 2) Insurance companies ask proof only during issuing policy. So if policy holder’s income drops later then also his nominee get all benefits. Don’t worry. 3) Buy riders separately is best. 4) There are so many general insurance companies which offers such facilities. So buy them from general insurers.

    2. I think you should first look at how much cover you need for your family’s financial security. IF your current cover is around 15-20 times your gross annual income then don’t bother.
      Also the term of of 40 years is very long considering the fact that post 60 you will retire and therefore the premium you will be paying would come off from your savings.

  22. Hi
    Please suggest if Bharati AXA term insurance is better or not…I want to shortlist term insurance at the earliest

  23. Hi,

    My age is 27. I had taken a term insurance policy of 7500000 for 30 years with a premium of 11629 per year in feb 2014 from Kotak(Kotak preferred Term plan). Now what i see from the kotak online term plan is the same amount of 7500000 is insured with a premium of 6500 per year.Please suggest should i take the online term policy of kotak by surrendering the existing one.

    1. Hi ,

      One more query, is online term plan better or offline term plan, as i have heard that online term plan is new in the market and there is no claim settlement ratio for the online tem plan till now. So please suggest.

  24. Iam a Lic Agent. My age is 41. my income is 2 lac p.a. I have 10 lacs Sum Assured including 5 lac Anmol jeevan risk plan & i have Aviva Life Term plan of 50,00,000 is it required to buy Lics term plan?

  25. Sir,
    I have term insurance plan for 50 lakhs. Since the premium is low in the present policies, I would like to change over to new one. Shall I have to surrender the old policy or just stop paying the premium?
    Thanks in advance.

  26. I am having term insurance plan from Avia for Rs. 50k. I am paying half yearly premium since 2 years. But Aviva has lower claim settlement ratio. Please suggest if continue with Aviva or close Aviva plan and buy HDFC or ICICI. I have mentioned correct details in online form, but not sure whether my familly would be benefited or not.

    1. Gaurav-Before cancelling the existing one, first check the benefit of moving to new one (in terms of money), sum assured and other features. If they suit you then go ahead. Once the new policy in your hand then cancel the existing one. But even I am also not sure whether your family would be benefited or not. Because I don’t know what details you shared and all the things. So do it properly without any missing.

  27. Hi sir I am a govt teacher my annual income 325000 l want to by a life term insurance of 5000000 /1 carore ples suggest me best company with case settlement ratio

  28. Hi Basavaraj,

    Thanks for such an informative post. Highly appreciative. Hope you’ll help me in my scenario.
    I’m 34 and have HDFC term insurance (offline) since 2007, cover of 40L, premium ~12.5K.
    They are now offering me their online plan in almost the same premium (~12-13 K) for a cover of 1cr.
    Plan seems good with the increased cover so is HDFC as a term insurance provider considering their claim settlement ratio.

    My dilemma is:
    (a) Should I opt for this plan and go for HDFC online policy (after which I’ll surrender my offline policy). OR
    (b) Keep offline policy as it is and go for another online term policy for a cover of another 50L (from HDFC or other provider)?

    Does holding a policy for many years make any difference at the time of claim settlement?

    Thanks and regards,

  29. Hello Sir,

    I already have a Term Insurance Policy from Met Life(before it became PNB MetLife) of Rs 50,00,000 continuing it for past 3 years, while I am paying premium around Rs 5200. This seems to be higher when I compare it with others.

    Now, after doing analysis it seems like I should buy a policy for Rs 1Cr. I just turned 25 this Oct, while my policy premium date will be due in June 2015.

    What do you suggest me buy a new policy now or should I wait till June 2015?

    My concern is that if I’ll buy during June 2015 the premium price may rise.

    Please guide.


    1. Apoorv-Why to wait? First buy for your desired sum assured. Once the new policy is in hand then stop paying for new one. Also as your date of birth falls in October month and if you wait till June to buy then your age will be considered as 26 yrs but not 25 yrs. So buying now will be cheaper to you than buying in the month of June.

  30. Hi,

    I am planning to buy a term insurance plan for amount 50,00000/-. Could you please suggest we best term insurance plan?

  31. Dear Basavaraj Sir, I constantly follow your blog. Great education in every article. I especially like the way you give lots of examples to explain things. It is really a nice way, Sir.

    I am 28 years and getting married after 45 days. A friend of mine told me to take term insurance and health insurance also before marriage itself. For term insurance, I wanted to take a policy for a long time till 75 years if possible but an article in the link below is saying that up to 60 or 65 is enough.

    I request your view, Sir.

    Also, is HDFC click to protect plan a good one? i am looking at option of accident benefit in that which is good I think. Please suggest that also.

    thanks is advance, Sir.

    Kiran M N

  32. Hi All

    Ive been planning to buy a Family Floater Health Insurance (2 adults ) for 5.00 lacs.

    Please advise which one is better.

    1. For a Family floater Star healt insurance is best.
      5 Lac cover with just approx 8500/- P.A and it has very good features

  33. Hi
    I have a question regarding term insurance plan these all companies offer that whether this insurance is valid worldwide or applicable on unfortunate event happened in india only ?

  34. i’m 36 year old, planned and processed my application for term plan insurance , after medical test I found facts are not clearly mentioned in reports like I’m a diabetic and smoker. My diabetic issue not clearly mentioned in report which makes me worry as I want to give complete information about my health status. Agent insisting me to continue with same report and have policy, kindly suggest.


  35. Sir,

    Ive been planning to buy a Family Floater Health Insurance (2 adults + 2 childern) for 5.00 lacs

    Ive checked Apollo Muncih – Optima Restore & Religare care & HDFC Health Surakasha Silver
    I had almost made up my mind for Religare Care but claim settlement ratio of Religare is nothing to write about…

    Its a delimma….
    Can you suggest which of the above can be better???

    Amit Chaulkar

    1. Amit, I would suggest you go for Max Bupa – they are specialists in Health and they also don’t have the clause that hospitalization within 24 hrs is not covered which most companies have. Due to this the premium is higher for Max Bupa but the plan has many inclusions/benefits that others don’t have.

  36. Hi Basavaraj,
    Thank you very much for this blog & there by helping people with unbiased advise.
    Whenever I have interacted with policy bazaar folks, they say instead of a 1 or 2 Cr policy break it into smaller chunks of 50L or less, they say its gets passed easily.
    I don’t agree.
    Maybe the time taken may be slightly more but as long as data is same (which it will be) in both the cases, it should matter.

    Is this right? or its better to break a 2Cr policy into 4 pieces?

    Thanks in advance

    1. Kaushal-They are forcing you to do such things to earn more. There is nothing like breaking will pass easily. When you buy first plan then you no need to worry. But for future buying you need to mention existing policies. So insurance companies will scrutinize that data. I think they will get more commission based on number of plans they sell. Stay away.

  37. hi Basavaraj,

    Really thanks for the information which you have provided.i am planning to buy a health insurance for my mom.after comparing benefits offering between bajaj hdfc and aegon religare. i was planning to buy aegon religare as they have some good benefits but after seeing claim settlement ratio of aegon religare i bit skeptical.

    please advice your views abouy aegon religare.

    mayur sadaye

    1. Mayur-If the features and premium are matching then go ahead. But I am not sure about how they provide service (whether they are bajaj, HDFC or aegon). Because it depends on company. If you are declaring all facts properly and any future claim is within policy wordings then no one can deny it.

  38. hi sir.
    i am from pathankot, punjab. i am 28 years old and married.

    i want to take a term plan . i will disclose all the facts with best of my knowledge. kindly guide me to choose the the best online term plan between max life, icici life, sbi life and kotak life taking into account the premium and benifits and claim settlement ratio. i am searching for the term plan since two months. but i am still confused between above mentioned. please help me sir.

  39. Is it advisable to take terms plan from 2 life insurance provider? i.e. 25lacs from each?

    Is this permissible for getting claim from both the companies? If the one company rejects the claim by any reasons even though all the information are furnished fairly, the other company may also reject on the same ground?

    Very confusing to choose the company who offers the best at a competitive premium?

    Please provide me to choose & move in right direction.


    1. Nirav-There are so many assumption like whether splitting is good or bad. But in my view better to stick to one company. Disclose all fact properly then no need to worry. Rejection of claim depends on so many things, which we or no one can say exactly. But what if the rejected company transfer the information to another company? So there are so many what, if, how. Instead stick to one company and buy it immediately. Recently I found comment on blog who says that he is searching for best term insurance sing once year 🙂 So is it a right financial decision?

      1. Thanks for advice.

        One thing we know LIC is No.1 company for any plans but the premium is huge. What are the chances of other private insurance companies for getting bankrupt? At times, if we have opt for them & such company got closed, we will be at loss in case of term plans especially, as if you opt for another company at later stage, you may have to pay higher premiums as your age also is of concern.

        Please provide your view on above.

        Also, I have found interesting about Max life Term Insurance with monthly Income for 10 years. What is your feedback on the same?

        1. Nirav-LIC is number one in typical products but not in term insurance. So don’t be in wrong belief. Second thing, there is something called solvency ratio which all insurance companies keep it aside when they do new business. This is made mandatory to keep buyers safety. So if company goes bankrupt then from this amount regulator can pay. I am against maxlife offer. What if your family need immediate huge cash due to your liabilities?

          1. Let me know, which company Term Plan do you suggest, which has maximum inclusion like Earthquakes, Terrorist attacks, etc. Having maximum benefits & economical.

            Value for Money & gives us assurance of earliest claim settlement in case of all the correct information are provided & submitted on buying. I prefer the company with the Medical must.

            The companies must be transparent & should not have any hidden terms like ” Act of GOD” & so on.

            Please guide me to choose the correct plan.

  40. I have taken aviva term plan online 3 years ago.
    It’s premium was lowest
    Although I have disclosed all correct information.
    But little worried due low claim settlement ratio nd negative communication abt aviva from its competitors companies employee
    Is der any way to check authenticity of Aviva claim settlement process

    1. Vikas-Do you feel the above claim settlement ratio only depicts about term insurance? It is some % of total claim settlement ratio. So we can’t know which is best insurance company in settling your term insurance. If you declared everything properly then no need to worry. Regarding Aviva competitors, which competitor in the world say that his/her competitor is good, whether it is insurance or in any industry?? So don’t bother and stick your principle.

  41. Sir,
    i am 45 years old and i purchase a term plan of Rs. 50 lac from AEGON Religare I Term as they provide cover up t0 75 years. please advice me is it a good choice.

  42. Hi Basavraj,
    I am planning to buy Aviva ilife policy

    Cover – 1 cr
    Premium – Rs 10900 (They increase the premium from 8700 to this amount citing family medical history – my parent are diabetic and high BP)

    My medical is done. The reports were normal. Since they increased the annual premium by 2200 citing family medical history, I am in doubt now.

    DO you think it is a good choice?

    Gaurav Singla

    1. Guarav-Increasing the premium is entirely a decision of insurance company (as they are the one who need to take risk). Hence I don’t have comment on that. But you can check with other insurers to buy.

      1. Thanks Basavraj. Though the claim settlement ratio of Aviva is little less than of HDFC or others, do you think the company is ok?

        Since I have not concealed any information while filling the application form, I see no reason why company would reject the claim, God forbids if such a need arises.

  43. Hi Mr. Basavaraj,

    Thanks for this excellent piece of information.

    I am 28 years old married man with annual package of 7.5 lacs. I am planning to take a term insurance of 1 crore and I have been a smoker earlier, but not doing it since last 1 year (that doesn’t matters now).

    I have gone through the following companies with their annual premium as follows –

    1. MAX – 35 years – 12472 Rs.
    2. ICICI – 30 years – 14756 Rs.
    3. HDFC – 30 years – 16405 Rs.
    4. SBI – 30 years – 20551 Rs.
    5. LIC – 35 years – 24270 Rs.

    Like many others, I also talked to guys and asked them between MAX LIFE and SBI, and they were pushing me for MAX LIFE. They look somewhat fishy to me.

    I am really very much confused between the two and recently I also saw ICICI and then your current post of claim settlement ratio. I was hesitant to choose MAX LIFE due to lot of fraud reports by users on various blog sites.

    Of course LIC is being too high premium for me.

    Please guide me to take the right term insurance among these 5. I will furnish all information correctly.

    Is it advisable to choose MAX LIFE (as they are also giving 6% extra in case they are not able to settle the claim in 10 days). SBI is offering to add upto 5 nominees (and I can also add my parents into it).

    Your quick response will help me to take a plan immediately as I have been postponing it since last two years and do not want to delay it any further. Please help me sir.

    1. Vishal-You can choose MAX. Because there are so many reasons for claim rejection. So whatever there in comments on few blogs may or may not apply to you. Hence my suggestion is to disclose all facts at your end correctly and go ahead. If at all too concerned then the choice is between HDFC or ICICI.

      1. Hi Mr. Basavaraj,

        My only concern with MAX was due to reliability of the company as well. MAX already has claim settlement ratio of above 90 %, but also the number of claims are very less when compared to ICICI or SBI or even HDFC as well. Going with ICICI was like giving only 6k+ extra for 30 years. The main factor with MAX was they are offering 35 years for the term.

        When I went to their office, MAX LIFE manager was luring me to take policy from them rather than online, but he was not able to answer properly that what is the problem with buying it online. This is where it gives a fraud kind of feeling.

        Thanks for your previous quick reply Sir.

        1. Dear Mr. Srivastava,

          As suggested by Mr. Tongatti, to secure yourself you may consider ICICI Pru iCare II.

          Here are a few points to help you make an informed decision:

          1. ICICI Prudential Life Insurance has one of the best claims settlement ratio in the industry at 96.29%*.
          2. Plus we are also one of the fastest in claim settlement and clear more than 90%* claims within a month.
          * As per IRDA’s Annual Report for FY12-13.

          To know more about our online term plan visit:

          Please understand that we only offer suggestions based on your requirements, however choosing a policy most appropriate for you remains at your discretion.


        2. Vishal-Do you feel LIC’s claim settlement ratio is high means they are settling big claim amount? You are at wrong side. They have average settlement less than Rs.1,00,000. So this claim settlement is only indicative but not full part. Because as of now we don’t have data which can prove that who are the leaders in settling pure term insurance claims. Regarding MaxLife manager experience, it will be same will insurance companies. So don’t bother about those things. Instead stick to your requirement and buy it.

  44. Really great effort to educate newcomers about the Insurance industry. Keep up the good work.
    One request: Please share data on choice of citizens of companies offering ‘Term Insurance”, percentages also help ! This helps us determine which term insurance policies are more popular.

  45. Sir, my father is seeking to buy a health insurance plan, he is 50 yrs old, and diabetic patient, please help me out for a right health insurance policy. I have tried to study a number of policies but all the things is complex..

  46. Hello…i m an NRI buying hdfc life term plan…as i have many other international insurance companpies..but i prefered indian company.pla advice is hdfc is good ?

  47. hi sir,
    i have read all of your comments regarding the term policies and many thanks to you that i have finally decided how to go with it. sir, i just wanted to ask you that, i want to buy a term plan for me and had an discussion with an agent regarding this. they are saying that if i purchase a term policy online then i have to run from pillar to post to submit different documents/ blood reports/ etc to the company and i wont be getting the HIGH SUM ASSURED DISCOUNT BUT, if i purchase the same with their help then they will take care of it all AND THEY WILL ALSO HELP GET ME DISCOUNT.
    sir, please help me with this…


    1. Vinet-It is just one more type of sale gimmick they are playing with you. There is no such thing that you need run from pillar to post to submit documents. Also all blood reports or medical reports will be directly sent from hospital to insurance companies. So why you need to submit? Regarding higher sum assured discount, let us say they are giving you around Rs.2,000 as discount, but what about the premium you are paying around 30% to 35% higher than online premium? It is completely a false statement what your agent is providing you to pitch his sale. Rest is left with you.

  48. Hi sir,

    I am planning to buy one term insurance, but very confused about which one i should choose.
    I am thinking about Max life Online Term plan. Can you suggess me the best.

    Thanks & Regards

      1. Dear Vinay,

        As suggested by Mr. Tongatti, to secure your family you may consider ICICI Pru iCare II.

        Here are a few points to help you make an informed decision:

        1. ICICI Prudential Life Insurance has one of the best claims settlement ratio in the industry at 96.29%*.
        2. Plus we are also one of the fastest in claim settlement and clear more than 90%* claims within a month.
        * As per IRDA’s Annual Report for FY12-13.

        To know more about our online term plan visit:

        Please understand that we only offer suggestions based on your requirements, however choosing a policy most appropriate for you remains at your discretion.


  49. Hello Sir,

    I understand that the table abaove shows the claims ratio for Individual death claims. Is it possible to also see the claims paid out for pure-term insurance policies ?

  50. I thank you for your very useful post.
    My age is 27. I planned to purchase health insurance (Family Floater) for my family.
    Please suggest which health insurance company provide best claim settlement.
    Please advise.

  51. Dear Sir,

    What about the term insurance of Reliance Life? I found it cheapest but what about its claim settlement ratio? It it worth to buy it online?

  52. sir, my age is 36 now, i want to purchase a good term policy for the period of maximum extended with critical illness and awaiver of preium for 50 laklhs

  53. Hello Sir,

    I am 24 years old. I am looking for a Term insurance Plan and Health Plan. For which company i should go taking into consideration premium amount and claim settlement ratio.

  54. Hello Sir,

    I am 32 years old and taken Aegon religare online term plan for 7500000 premium @ 11400.Should I continue or change.
    Please do suggest.

  55. Dear basavraj,

    i really appreciate you to spread knowledge in investor and insurer .
    i also plant to take term plan of 50 lack and investment of 50K yearly
    for 20 to 30 year and mediclaimed also please suggest company for above these 3 and
    is there ok with other than LIC company’s for term plan and investment.

    Thanks in advance for your great Opinion.


  56. Hi Basavaraj

    I have very similar query posted by Sachin Samuel.

    Even PolicyBazar proposed me same combination , the confusion is about Settlement ration do we take a chance with less premium Term covers or is it better to go with HDFC/Max/LIC which have better settlement ratios.

    I am sure i have declared 100% facts.

    Whether settlement depends up on the company profile or the facts i have disclosed.
    Honestly i dont want to take a chance , but i want to believe some one i can rely.
    What is your suggestion ?

    Thanks for the work

    1. Vamsi-Never believe on Policybazaar, even though they are claiming just comparative site, but still they lure buyers to buy particular company online term plans. Without having any benefit why they will force you by calling so many times to buy ONLINE TERM PLANS? So what it indicates is, don’t go only based on price of policy. Instead go with the company track record and how they are efficient in handling claims etc. It is purely the judgement of claim settlement team to decide based on the facts you disclose and the reasons for death. Hence we can’t say it depends on company or your disclosure. But the only thing that is in your hand is, choose the company based on their past record, performance, price (one of the condition, but not the major) and disclose your facts without hiding anything. This is what you and me can do. Even me too don’t want to take change especially when it comes to life insurance. But if we are at right path then I don’t think no one can deny. Hoping for the best and regulator.

  57. Hello Sir,

    First of all Thank you so much for proving detailed information!

    I have few quires as mentioned below:

    1. As you suggested to Mr. Parag JOSHI bying Max Life, HDFC or ICICI
    2. If, I purchased term plan from one of these options for 50 Lakhs, is it required to adding riders for critical illness?
    If you answering YES! then which insurance company provide best options for this.
    3. OR else any options for separately buying critical illness factor .

    Thanks in advance!
    Ram BORASE

    1. Ram-Riders are additional features to your main plan. So it is your choice to choose riders. In my view if term plan offers it then go ahead. But best option is to buy it separately from general insurers.

  58. Hi Basavaraj,

    Brilliant article! Appreciate your work.

    I have few questions.

    1. I am 33 years old and looking for term insurance. When I called policybazar, they recommended to break the cover amount and get 2 term insurance instead of one, so that incase one of the insurance company rejects claims, my family will still have chance with the second company.

    Do you think this is a good idea?

    2. I was planning to go with Aviva and Aegon religare, 50 lakh each. Do you think it is good idea? if not can you recommend which one should I choose?

    Once again, thanks for the excellent information and thanks in advance for answering my queries.


    1. Sachin-1) It is good to break. Have you thought that what will be guarantee in future that one insurance company will not pass the information to another by stating the reasons behind claim rejection? Hence disclose all facts correctly and buy one product.
      2) Better to go with HDFC, ICICI, Max Life, SBI or LIC (costliest).

  59. Hello Sir / Madam

    I am Parag Joshi, My Date of Birth is 08-07-1981, Annual Income is Rs. 10 Lakhs.

    Planing to buy NEW TERM policy of Rs. 01 crore.

    I have seen several insurance company term plan & premium are as below :

    LIC – 35,000/-
    AVIVA I LIFE – 9000/-
    MAX LIFE – 10,000/-
    HDFC CLICK2PROTECT – 13,800/-




    Thanks & Advice which is good over all. . .

    Call Me on – 9324239400

    1. Parag-You can go with Max Life, HDFC or ICICI (because all three offer you online term plan). If you are staunch believer in LIC then pay more and be with LIC. In my view, if you declare all facts then I don’t think your nominee will face any issue.

    2. Hi, Mr. Parag Joshi before going to planing to buy any term policy, you must focus on company’s claim settlement ratio. And it is very imp to give all true medical history and other facts of you to life insurance company, they can reject your claim upon any find wrong medical history or other facts given by you to company if early claim happened(within 3 years from the starting of the policy as rules by IRDA).

      You can buy your term plan form kotak life insurance company, they have 97% claim settlement ratio. You can also calculate you premium yourself just follow this link

      User latest update internet browser like google chrome to surf website properly

      To know more about company just click on

      I am working with kotak life insurance company as Business Associate since last 4 years. If you want to know more about term plan and planing to buy term plan contanct me on [email protected]

    3. dear mr parag
      if u take term insurance atleast take rs 20 lakh regular traditional plan because term plan doesn’t cover permanent diability. so don’t cover fully with term insurance take some regular plan that will provide you cover for life time

      thanks kalpesh parekh

      1. Kalpesh-Is it mandatory to buy regular plan to cover disability rider? How about buying a typical accidental insurance separately by general insurance companies? They are more cheaper and come up with additional features which are not present in such riders. What do you say?

  60. Wonderful and the most important info required for any person who wants to select their insurer. Unfortunately, most people aren’t aware of this. This is the list which separates the market lions from the rest. LIC leads as usual and no surprises for this. Basu, thanks for sharing this.

  61. A great article, very helpful for the investor community. specially when the insurers are luring the investors based on this criteria.
    I also read that one should ask the agents for the break of claims ratio into;
    Maturity Claim
    Quick Claim
    Surrender Claim
    Settlement Claim
    Would appreciate some info on the above and how this should affect an investors decision making.

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