IRDA Claim Settlement Ratio 2015-16 | Best Life Insurance Company in 2017

On 15th December, 2016 IRDA published Annual Report for FY 2015-16. Let us see which is the top and best Life Insurance Company for 2017 based on claim settlement ratio 2015-16.

Note:-IRDA published the Annual Report for 2016-17. I have written the post on that. Refer the post “IRDA Claim Settlement Ratio 2016-17 | Best Life Insurance Company in 2018” for latest data.

What is the meaning of Claim Settlement Ratio?

Claim Settlement Ratio is the indicator how much death claims Life Insurance Company settled in any financial year. It is calculated as the total number of claims received against the total number of claims settled. Let us say, Life Insurance Company received 100 claims and among that it settled 98, then claim settlement ratio is said to be 98%. Remaining 2% claims the Life Insurance Company rejected.

Based on this, we can easily assume how much customer friendly they are in dealing with death claims. However, I warn you that this claim settlement ratio is raw data.

It will not give you clear picture of what types of products they settled. They may be Endowment plans, ULIPs or Term Insurance Plans. Hence, this is not a sole criteria in judging the performance of a life insurance company.

IRDA Claim Settlement Ratio 2015-16

Below is the Claim Settlement Ratio 2015-16 or up to 31st March, 2016. I differentiated the below table with colour code for your better understanding.

Green-Claim Settlement Ratio from 90% to 100%

Yellow-Claim Settlement Ratio from 80% to 89%

Red-Claims below 79%.

IRDA Claim Settlement Ratio 2015-16

You notice that among total 24 Life Insurance Companies, around 12 companies are in GREEN (Claim Settlement Ratio above 90%). Total 10 companies are in YELLOW (Claim Settlement ratio between 80% to 89%). Total 2 companies are in RED (Claim Settlement Ratio below 80%).

As usual LIC tops the list. But don’t feel happy. Let us see the claim amount settled by individual companies to arrive at best companies.

The biggest surprising factors from Claim Settlement Ratio of 2014-15 to Claim Settlement Ratio of 2015-16 are as below.

# Star Union‘s last year the claim settlement ratio was 94%. Hence, I intentionally flagged it RED. Now see this year’s result. It’s claim settlement ratio dropped to 81%. A drop of 13%.

# Reliance Life is one more big changes. Last year the claim settlement ratio was 84%. But this year, it jumped to 94%.

# PNB Met Life‘s last year’s claim settlement was 93%. But this year, it dropped to 85%. A change of 8%.

# Birla Sun Life‘s last year’s claim settlement was 95%. But this year, it dropped to 88%. A change of 8%.

# IDBI Federal Life‘s last year’s claim settlement was 76%. But this year, it increased to 85%. A change of 9%.

# Aegon Religare Life‘s last year’s claim settlement ratio was 90%. But this year, it increased to 95%. A change of 5%.

# Edelweiss Tokio‘s last year’s claim settlement ratio was 60%. But this year, it increased to 85%. A change of 25%.

# DHLF Pramerica’s last year’s claim settlement ratio was 57%. But this year, it increased to 84%. A change of 27%.

Now you noticed that new companies claim settlement ratio changing so high around 27% to 8%. Why such change? No specific answers to such big changes (either positive or negative).

So do you feel this data a reliable one? I stay with insurance company which gives me stable and consitent result than such a sway in business data.

Average Claim Settlement Amount of Life Insurance Companies in 2015-16

As I said above, the claim settlement ratio will not give you the clear picture about which type of products the insurance companies settled. However, we can assume the types of products they settled by looking at the average claim settlement amount of Life Insurance Companies in 2015-16.

Average Claim Settlement Ratio 2015-16

Here comes the results !! LIC stands in lowest with red in colour along with Life Insurance Companies like Sahara, Reliance Life, Exide and Future Generali. What it indicating?

It shows that, even though LIC settled the highest number of claims, the majority of such claims are less than Rs.2,00,000 Sum Assured. Hence, it is indicating indirectly that LIC’s claim settlement is mainly in the category of Endowment Plans but not Term Insurance.

Average Claim Rejection Amount of Life Insurers in 2015-16

Now let us go deeper into Claim Settlement Ratio 2015-16 and try to analyse the how much amount of claims they rejected. Here, I calculated average amount as I don’t have data to check the maximum and minimum amount.

The results are as below.

Average Claim Rejection Amount 2015-16

You notice that Sahara’s claim rejection amount is less and then comes the LIC. LIC’s claim rejection is less because the quantum of claims it handles is HIGH but value is less. So no need to say that LIC done a great job here.

Claim Pending Status of Life Insurance Companies in 2015-16

The greatest fear for all of us is how fastly the Life Insurance Companies settle the claims. Let us now analyse the data of claims pending with Life Insurance Companies in 2015-16 and how old they are.

Life Insurers Claims Pending Status 2015-16

You notice that Kotak Life, Reliance Life, SBI Life, Shriram and LIC are leading in pending cases which are more than a year. Reasons may not be know. But it indicates that there are some issues either with insured or insurer.

I don’t want my Life Insurance Company will delay claim settlement for a year or so. In my view, it must not go beyond 6 months. But delay fears me to look at these companies.

Best Life Insurance Company in 2017

Based on the IRDA’s Claim Settlement Ratio 2015-16, which are the Top and Best Life Insurance Company in 2017? I select only five based on above data. You may differ in my view and come up with different set of ideas. But these are my choices.

  1. LIC
  2. ICICI
  3. HDFC
  4. Aegon Religare
  5. Max Life

Few important points before jumping into selecting of Life Insurance Companies

# Claim Settlement Ratio is raw data

As I pointed above, claim settlement ratio is just a raw data. It will not gives us the specific data. Hence, never rely on this single data alone while short listing the insurance company.

# Concentrate on Product rather than company

Choose the product which suits your requirement and premium affordability. Declare the facts properly. Never hide any material facts. If all these you do, then an insurance company will have to accept your claim. Never give room of suspicious on you to reject the claim.

# Section 45 of Insurance Act will guard YOU

According to Section 45 of Insurance Act “No policy of life insurance shall be called in question on any ground whatsoever after the expiry of three years from the date of the policy, i.e. from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later”.

It says a lot. Even if you shared wrong information or hid some material facts, then also it is purely life insurance Company’s responsibility to dig deep and find out faults WITHIN 3 YEARS ONLY. After 3 years, they cannot question. Note the period of 3 years, it is from the date of issuance of the policy, or the date of commencement of risk or the date of revival of the policy or the date of a rider to the policy, WHICHEVER IS LATER. So let us say if you took the policy today and after a few years the policy lapsed due to non-payment of premium. However, you thought to renew it again and paid all dues. In such situation, this 3-year period starts from such revival date, but not from the original policy issued date.

Read the complete details about this IMPORTANT act of Life Insurance in my earlier post at “Term Insurance-Claim Settlement Ratio no more a big criteria”.

# Disclose the facts Properly

While buying Life Insurance products, you must fill the proposal form on your own. Never allow any agent or Life Insurance Company representative to fill it. Disclose the facts properly without hiding anything. This will really help you in big way. Also, it will not give any room for insurers to reject your claim.

Do the things properly which are in your hand. Rest HOPE for the best 🙂

162 thoughts on “IRDA Claim Settlement Ratio 2015-16 | Best Life Insurance Company in 2017”

  1. What criterias should one consider before buying any Life Insurance. And which is the best Life Insurance provider currently.
    I am a smoker and 30 years of age. Please also suggest the insurance amount one has to consider.

    Please provide you response.

    1. Dear Sachin,
      There is no such yardstick to select and also there is no such BEST. Check the product feature and eligibility. If you are comfortable with features and premium affordability, then go ahead. Regarding the quantum of cover, the random ideal cover should be around 15-20 times of your yearly income+any existing liability.

  2. Hi Basu,
    Thank you for this article.
    Me & my wife both are working. But don’t know how long she will work. Shall I get term insurance for both?
    For critical illness & accidental shall I take two different term insurance?

    1. Pravin-Yes, if you both are working and someone financially dependent on you and wife (even mutually), then go ahead for Life Insurance. For critical illness and accidental insurances, better to buy from non-life insurance companies.

  3. Sir,

    Though the Companies like HDFC and ICICI have very high Claims Settlement Ratios but the total Claim Benefit Amount paid by them (in terms of Percentages) range from 60-70% and 75-90% only in last three years respectively. However I have observed that only Max Life has good consistent ratios of above 90% in both parameters.

    So considering the fact that CSR is just a raw data; still my above mentioned observation is right or incorrect. Whether the CSR should be seen along with Total Claim Benefit Amount Paid%. Whether Max Life should be considered as a better company than the both (HDFC and ICICI) in terms of settlement ratios

  4. Hi,

    I have taken a term insurance from Ageon Religare. Against my policy they are offering me term insurance for my spouse.

    I would like to know that is it logical and financially good decision to buy term insurance for my non working wife. Is it worth to buy term insurance for house wife or it is just a marketing strategy.

    Please guide me for the same.

      1. Thanks for your response.
        It means we should avoid term insurance for non-working spouse as their is no financial dependency.

  5. Hi Basu,
    I have gone through you blog and its clear lot many question , I am so thankful for it. I have compared term policy on Policybazar and as you said they asked for all your detail. The adviser has guide me on comparison but I found thing which visible on screen. I have few question about Max life term insurance.

    1. whether can we change insurance from one to another.
    2. I earned 85000/month and have home loan also , whether I have to go for 1 Cr or more than that.
    3. Whether I can purchase insurance policy online directly from site?
    4.How will be the claim process when I will be not there, just concern about the claim settlement ratio. how easy it is..?
    5. Whether Insurance company provide valid receipt or certificate when purchased online..?

    Please provide your opinion.

    Warm Regards,

    1. Naresh-1) NO.
      2) Hard to say. But the ideal cover should be around 15-20 times of your yearly income+the liability.
      3) YES.
      4) Your nominee has to approach the insurance company.
      5) Yes. Along with that, they send you the policy bond hardcopy.

      1. Thanks Basu, Quite helpful , Just one more concern, purchasing policy through policy bazaar is Ok to go ahead. I am getting call from them.

  6. Hi,

    I am planning to buy term insurance for myself.
    Can you suggest which company is better. Shall I go for maxlife or pnbmetlife. I came to know that pnbmetlife gives cover till 99 year however I have concerns about settlement ratio.

    Can you please suggest which company should I go.

      1. We don’t need but in that case we will at least get some amount as refund – maturity benefits as well at same premium where maxlife is just giving cover till 75. Hence that thought came into my mind.

        Please help if it’s otherwise.

            1. Ashish-When you retire? When you be free from financial responsibilities. When you are free from financial responsibilities, then you no need of insurance. Hence, you need insurance up to your retirement.

  7. Hi Basavaraj,
    I found this artical very usefull. Can you share same for FY-16-17 Now and is there any change in preferred list of Insurer.

    Also can we option more than One term policy . and if Yes which one is better 1. .To have One Policy with higher Amount or two policy from different Insurer.

  8. Hi Basu Nivesh, thank you for this nice compilation and useful data. Really appreciate it.
    In your comments you advised someone to go with only term policy.
    I was also looking at vanilla term policy only, till I came across critical illness rider. It seems to be good.
    Would you recommend to go in for this rider or search for options with different plan? And go ahead with vanilla term insurance .
    Looking for your comments.

  9. I’m a term insurance adviser in policybazaar I have almost 20 companies. Bt if I suggest Maxlife is the best one to get a insurance if anyone having doubt regarding this contact me on this no. XXXXXXXXXXXXXX

    1. Sandeep-TERM INSURANCE ADVISER WITH POLICYBAZAAR? When Policybazaar started recruiting advisers? Also, don’t promote your or someone else business on this platform. Otherwise, your comments will be considered as SPAM.

  10. C venkata krishna Reddy

    Dear sir
    I am planning to take aegor term insurance for 1 Cr. I am a public sector bank employee.
    Will it be good?
    Can I opt for disability rider?

          1. thank you sir. but just now i have bought max life insurance for 1cr 40 years. with accident rider, critical illness rider and waiver of premium rider for 1166 monthly. what do you think. is it good?

  11. Do you have any article on explaining riders (accidental disability, accidental death or critical illness) with the term plan? What shall I check for a hidden rule?

  12. Sir,all insurance companies Providing like any kind deaths or only accidentally deaths,..
    Which are providing any kind of death for term policy,
    My Age was 27,
    Pls suggest sir

    1. Term insurance covers all the death there is a single exclusion and that is 1st year sucide xcept this all the death are coverd in term insurance

  13. Hi sir
    What about Exide term Insurance..may i know it is Providing normal death and accidentally death benefits,and my age 27, monthly income 25000/-,
    Please suggest a term insurance for any kind of death,
    And what’s may I prefer to take…..

  14. My DOB is 26/09/1986 wid income upto 4.5 lacs & planning for Term Insurance of 1 crore wid upto 1lac (more than 50K) p.m. Income to my nominee. Requisites as follows

    S.A – 1 Crore or More + Monthly income of more dan 50K
    Premium amt- <25K
    Waiver of Premium in case ATPD & CRITICAL ILLNESS.

    But all this is not fulfilled by any of d company. Regardless I've identified HDFC LIFE & MAX LIFE. Will it be okay if I split Cover from both of these company like 50 Lacs S.A. from HDFC LIFE & 50 Lacs S.A. from MAX LIfe to fulfill my requirements to some extent????? Plz advice…. Thanks..Basunivesh…

    1. Pankaj-In my view, considering your income range, it is hard for you to get more than Rs.1 Cr term insurance. Also, premium differs from insurer to insurer. You have to check (or split) as per your comfort. Do you think to buy riders a wise decision?

  15. Mukesh Chelani

    Hi Mr Basvaraj

    Great and useful information

    Can you pls tell me the IRDA’s link where I can obtain information on claim settlement ratio on Health Insurance companies



  16. Sir.
    I have taken Traditional Relience invest assure policy in 2010.
    I have paid 7 premium so far…
    Can you pl advise me about the policy future or i switch to another policy.

      1. Actually that time, i was not aware of the policy….
        Blindly invested…
        Pl suggest me further course of action……

  17. Hi BasuNivesh,

    I am 28Y old and my annual income is around 47K. I am not into any LIFE Insurance Term Plan till now.
    I had went through IRDA CSR 2015-2016 and policy features of different Insurance companies.
    I am about to take EXIDE LIFE Insurance Life Smart Term Plan(114N083V01) for 30Y with an annual Premium 10201/- + Service Tax (384/-) for sum assured 50L. I see annual Premium is bit higher than other companies but the guaranteed Maturity benefit is 306,030/- . Can you suggest me whether we can trust and opt for it where it has less CSR when compared to your TOP 5 Term Insurance Plans.

  18. Such an helpful and detailed analysis on the insurance companies real part..
    Sir, If LIC is on the highest claim settlement ratio, still it has the highest pending settlement ratio too… But still how did u estimated that the LIC is also one of the top one in the good insurance companies list??
    Just curious to know about that.

    1. Sankar-Who said that CSR is the only criteria to judge and list the company. Proportionate claim pending may be there with LIC also. But look at the average claim amount settled by LIC. The majority of cliam settlements are with Endowment Plans. Hence, I am neither pointing that LIC is best or worst. I am just sharing my view and this is what I explained in above post.

  19. Where and how to get the claim settlement ratio of Health Insurance Companies for 2015-16 and 2014-15? Please provide if you have the details

  20. Dear Sir – Which MEDICLAIM plan would you advise for persons suffering from Epilepsy disease (its a neurological disorder). Please if you could specify List of Insurance providers and their plans. Also please advise if somebody has not disclosed about Epilepsy then what impact this will have on claim settlement.

  21. Sumit Kumar Karan

    Dear Basavaraj,

    I was going through couple of child plan online, I came across, “Aegon Life iMaximize Insurance Plan Option II – With Additional Benefits” and started thinking of going ahead with this ….Request your inputs in this regard, it would be really great for me.

    Sumit Karan

      1. Sumit Kumar Karan

        OK Sir, but in terms of making corpous amount how is this ULIP plan? Lets not consider it a Child Plan.

  22. sir,
    I am 28 years old,i Want to buy a term plan of 50 lakh Sum Assured till 40 years. So can you suggest me that which company’s term plan is best to adopt out of both Max life insurance and icici prudential life insurance. While ICICI LI charging premium of Rs. 6925 /- and Max life Insurance Charging premium of Rs. 5084/- for the same features.

    Kindly Suggest me which term plan should i adopt with consideration in all aspects of the both companies.


    Dear sir,
    I want to buy a term plan of future general company . Is it safe?
    When will the report of claim settlement published by IRDA.

  24. How do you put LIC under the category “Best Life Insurance Company in 2017” that too at the first rank even though the number of unsettled claims is so high for LIC as shown by you. Please clarify this, as I am confused between LIC and private players like HDFC, ICICI, Max. The product I am looking for is term insurance.

  25. Vipin Kumar Gupta

    Hello Sir,

    Currently, I owned Aegon Religare term insurance for 1 Cr. and this policy is running from last 4 years. As, i have seen there claim settlement ration is good but still i am feeling very confused. Is it worth to continue for further years or i have to switch with some other company like LIC. Please provide me your valuable feedback.

    Vipin Kumar Gupta

  26. I am kamal I want to get a term plan sum assured 25 lakh. please suggest me which company is the best for term insurance. my date of birth is 03-feb-1992

  27. I want to buy a term plan worth Rs. 1 Cr. Please suggest me best company because as discussed above at the time of claim settlement companies are changing their mood. So I want your suggestion. Please reply as soon.

  28. Thank you for giving us detail data of Life Insurance. Could you please help with two wheeler and four wheeler insurance also. I am sure many readers will like to have information about same for renewing their policy..

  29. Hi,
    I couldn’t find your email here.
    Can you send a mail to my email id provided. I would like to discuss my financial planning with you.

  30. My name is arpan my mother age is 54 I want her term policy insurance today I went to sbi life insurance office they tell me plan in which premium is 14000 rs for 11y and security of 25lac n 5lac rider but after see ur choice ranking of insurance company i get confuse so plz tell me the right option with less premium n right claime settlement in any option

      1. hi Sir

        Your motive is something commendable. Keep encouraging us by sharing your wisdom. I read your blog it helps in removing all my apprehension. Could you please tell me what is the advantage in buying term insurance online? or the disadvantage in offline?

        Kind regards

          1. Sir

            But someone told me that claim settlement of Online polices are very difficult as compared to offline policies where Our nominee should allow only contact to divisional or zonal office on such online policy settlement time..Is it true???

            Awaiting your valuable comments.

  31. Hi Basavajaj,

    Thanks for your article, I like to understand term insurance amendment in 2015(Section 45) is applicable retrospectively or it is only for new insurance started after this amendment?


  32. Dear Basavaraj Sir,

    Thanks for the article.

    Sir, I am interested in buying TATA AIA product Sampoorna raksha.
    Reasons premium is only for ten years\
    Maximum cover age is 80 yrs
    Maximum tenure is 40 yrs.

    My choice is going a little different from yours top 5 companies
    Is my choice right or wrong, pls guide with explanation.
    Thanking you in advance for your generous support.


      1. Yes sir, Insurance is required till 80 yrs
        As history of long life is in my family.
        Non smoking, Non Alcholic and healthy living style.
        Importantly premium has to be paid only for 10 yrs
        i.e., I will have to pay premium when still i am working and not retired.

        1. Kevin-If you really feel you work till 80 years of age, then go ahead. Ideally, post-retirement insurance is not required. Here, your life expectancy will not play rather the financial dependents, which in case of retirement will ceases.

  33. hello sir,am 34 yes old,non smoker/drinker,govt employee,my payment is 6 lakh annually,married ,no kids,1 want to do a term plan of 1 crore, pls tell me z suitable company. also tell me can I change my nominee ,after wards

  34. Manoj Kumar Pandey

    Sir, I wanted to know the maximum life cover for me as my date of birth is 07.03.1967 and my salary in this financial year 2016-2017 is 11.5 lakhs

    1. Manoj Kumar Pandey

      As different people are guiding me in different way for my planning to buy a term plan, some are telling that a sum of 10 times of my annual income can be insured/covered, where as some are telling 12 times of my annual income, similarly some other are telling 15 to 20 times of my annual income can be insured. please guide me properly taking consideration of my age i.e. 49 and annual income i.e. 11.5 lacs.
      2.) Also advise me which term plan is better between PNB Metlife or Max life.
      3.) Maximum life cover under PNB Metlife and Max life for my age and income

      1. Manoj-As I said, how to offer you depends on the respective insurer. It not only depends on your age and income but also some other factors like your health. If someone saying properly that how much insurance companies offer you the cover, then he is lying to you. The ideal insurance cover one must have is around 15-20 times of his income. But how much the insurance company offers you depends on its own criteria.
        1) Refer my post “Top 5 Best Online Term Insurance Plans in India in 2017“.
        2) Check with those companies.

  35. Hi

    Recently I buy a term insurance from Aviva life insurance of amount 50 lac for myself. Is this a good decision or I should change the insurance company as I am also aware of section 45 of insurance act. I am perfectly fit and fine and I am married and have 2 children.


      1. Just about the low claim settlement, my policy write now in 15 days, so I am in position to correct my decision, if this is not right for me.


  36. debendra Kumar Sahu

    firstly Thanks sir. Yr suggestion is fully helpful to me. Now I understand the difference between term plan and child plan. firstly I decided to get a term insurance .Sir I have a last doubt,beside term insurance i want to invest in mutual fund(monthly Rs. 5000/-)for 15yrs for better education and marriage of my child. I want to take 2-3 mutual funds. Already I have continued Lic, ppf, pli and atal pension yojana (for my wife ).my goal is to better education for my kid. Pse guide. I hope Yr suggestion may be change my kids future.
    Thanking sir
    Debendra Kumar Sahu

  37. debendra Kumar Sahu

    Dear sir,
    Previously I read yr comments about term insurance and mutual fund. It’s quite good.I glad to thanks you. I want to take a child plan For future better education for my baby .now he is 1year old. so Pse guide best child plan in 2017.i read jivan tarun in Lic. In this scheme premium is very high. So beside Lic which best child plans are in 2017.
    Thanking you
    Debendra Kumar Sahu

  38. shaik alla bakash

    dear basavraj sir,
    i wish to buy an online term policy for 75lakhs. i want to put all the riders viz. premium waiver, total permanent disability, accidental death benefit, terminal illness and critical illness covering all major diseases.
    kindly suggest me term insurance among 5 companies as i am much confused.
    thanking u in advance.
    alla bakash shaik.

  39. Hi,

    I Have a 1 crore term cover with ICICI for last 6 years. Looking to take another cover for 1.5- 2 crores. Does it make sense to take the second policy from ICICI or should I go with someone else?

  40. Dear Sir,

    I am planning to buy ICICI term plan, It costs me –

    For 49 Lacs – 6163 (For 30Yrs)
    for 50 Lacs – 7249 (For 30Yrs)

    Why there is so difference for one lac only (Smoker category)

  41. Sir,
    Greeting for the New Year 2017 !
    Thanks for sharing such good data.
    I get confused between max and icici for term insurance, could you pls suggest which one is best for me. For max, i have doubt on company stability and now HDFC owned max. while icici has its name in respective area.
    i am 27 years old and non smoker.

  42. This is a very good post,thank u very much basu ji,i hv a term insurance of Rs 60,00000.oo from sbi life for last 2 it ok to renew this year or change to hdfc / i hv lic some endowment plans,some hdfc sanchay plans,in case of death all need death cert. Original i think,pls suggest how to manage for claim.

  43. debendra Kumar Sahu

    Dear sir.
    for my childs education Which is the best plan? (Ulip or term plan).recently I got a ulip from ageonlife I maximize option 2 Rs.2000/- (monthly).I free lock yesterday. I can’t understand is it good or bad for me. Pse suggest me.i read yr reply. But I have a doubt which type of fund I get for10 yrs long term. Please give yr suggestion
    Thanking you
    Debendra Kumar sahu

  44. debendra Kumar Sahu

    Dear sir.
    I m a govt servant 31yrs old. My monthly income is rs32000/-.I have a Lic givananand and bimagold premium rs7050/-(yrly )since Jan 2006.pli-rs43000/-(yrly).ppf-2500(mnthly).I want to invest for my child (now he is 01yr)for long term. Which is the best -term plan or ulip? Sir i wish to proceed Rs 5000/-(per month )in 2-3 mutual fund for 10yrs. So Pse suggest which type of mutual fund is suitable for me? My investment is dependupon yr suggestion .Pse send on my email id [email protected]
    Thanking you.
    Debendra Kumar Sahu

  45. Dear Basavaraj Sir

    Wishing You and Your family and Staff all a VERY HAPPY AND PROSPEROUS NEW YEAR 2017.

    Dr B Rajesh Pai

  46. Hi Basu,

    I wish you , your family members & your staff a very happy new year .
    I pray to God on behalf of you to give you more health , wealth & make all your dreams to come true in this new year itself.

  47. Is it better to go for a sum assured of 1cr with icici or sum assured of 50lakhs by LIC both by online for almost the same premium.The thing is how those companies will pay in case of any unexpected thing.

  48. Hi Basu,

    I am 35 yrs old earning around 80K pm without liabilities and I am the only earning member. Have a kid of 2 yrs. I am looking at some insight into best child insurance/education plans to secure my kids future. Also please suggest me on good pension plans or annuities. This will be of great help to me.

  49. Dear Sir, my father created a NSC worth 38000/- in his and my name jointly (his name first), maturing this January. He deceased 4 year ago. NSC certificates and his death certificate is enough to claim the money? How is tax implications of the same on me? How will post office pay me the money,cash or cheque?

  50. Nice article Basu, thanks for the info…I wonder if section 45 of Insurance Act is gurding the consumers then how the insurance companies are rejecting the claims, considering the fact that maximum claims are rejected on the basis of hiding the facts from the companies.

  51. Max Life will soon be merged with HDFC Life. So, people who want to form a basis on Max Life must consider that Max Life has already been acquired by HDFC Life. Even if there may not be any drastic changes very soon but insurance being a longer period, one must weight Max Life same as against HDFC Life (whether it is positive or negative impression) as eventually MAX Life becomes a part of HDFC Life.

  52. Dear Basavaraj Sir,

    Very good article. Sir, few points i observed worth noticing. HDFC life average claim rejection amount is highest among the group. Their claims pending status is also worth noting but not worth NEGLECTING?. Thier average claim amount settled also below expectation levels. Even though their claim settlement ratio is 93%, majority of these are ulips i feel because the average claim amount settled is very low. If you take the benefit amount settled percentage from HDFC life, its around 69%, something which is very poor and its consistantly poor over the years. All these stats tell that HDFC tend to reject majority of big amount claims, which usually are TERM plans. I am quite surpraised, with these much of data, How HDFC got 3rd best place in your list? Is it worth to rely on HDFC life sir? Online feedback about the company is worth consideration with majority being on the negative side openions.

    Dr Rajesh Pai B

    1. Rajesh-I understand your points, but I am bit bias towards oldest companies also. But when you look at other parts like how much the pending status of claims, they are bit OK. I am not defending here about HDFC Life. It is purely your choice. If you are uncomfortable with any of the insurer, then simply stay away. That’s the reason I said, mine BEST does not mean that it must be UNIVERSAL BEST.

      1. Thank you sir.
        I fully agree with other choices. All other companies you picked as best are of Very Good standard.

        If companies think their own profit and keep on rejecting huge amount claims, how people will confidentally buy insurance and how industry will grow? Insurance penetration in India is very low when compared to western nations. MY GENUINE CONCERN SIR.

        RAJESH PAI B

        1. Rajesh-I understand high rejection leads to bad name. But do you feel for the sake of one year profit earning they are ready with tarnishing brand? The need of the hour is understand of our rights against insurance companies. So that they fear with us and abide by rules.

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