LIC Claim Settlement Ratio

What is LIC Claim Settlement Ratio (CSR)?

The claim settlement ratio is an important figure that shows the percentage of claims that an insurance company has paid out during a particular year. It reflects the insurer's capability and trustworthiness in dealing with claims made by policyholders. Being one of the largest life insurance companies in India, LIC has a very substantial history of claim settlements. A higher CSR figure means that LIC has a solid reputation of claim payments, which is an encouraging pointer for policy buyers.

Since 2019, LIC has consistently maintained a CSR of over 98%, clearly demonstrating how much the company values its policyholders. It means that more than 98% of the claims that come to LIC in one year are settled, and this operation undoubtedly brings financial security to the policyholders and their beneficiaries. One of the reasons that contributes to the high CSR of LIC is the efficient claims settlement process of the company. Also, LIC's established presence in the insurance industry has enabled it to gain a thorough knowledge of the customers' needs and expectations. Such understanding has helped it to obtain a high CSR, as it can customise its services to the diverse requirements of the policyholders.

Why Is It Important to Measure the LIC Claim Settlement Ratio?

The Claim Settlement Ratio is crucial to policyholders for various reasons:

• Reliability: A high CSR is an indication that the insurance company is trustworthy and hence, it is willing to the quick settlement of genuine claims. Such dependability is a source of comfort to the policyholders and their beneficiaries.

• Financial Security: Purchasing a life insurance policy is generally viewed as a way of providing for the financial needs of one's dependents in the future. Therefore, a top CSR is proof that the company will give you this financial security.

• Trustworthiness: When a company keeps paying out claims, it gets the trust of its customers. As a sector where trust is the main thing, the insurance companies get great benefits from a high CSR.

• Customer Satisfaction: What customers expect from a life insurance plan is to get financial help when they are in need. The customer is thus satisfied if the claim is settled on time. A quick action by LIC to settle claims leads to a wonderful experience of the customer, thus providing the policyholder a sense of security.

• Transparency: Insurers with a good CSR usually run transparent and fair operations, which make the claims process more comprehensible for policyholders.

• Value for Money: Policyholders should feel that the premiums they pay are worth it. A high CSR is a demonstration that the company is true to its word.

How is the CSR of LIC of India Calculated in India 2026?

Claim Settlement Ratio is a measure that shows how many claims an insurance company has settled compared to how many it has received during a financial year. This ratio is turned into a percentage. Suppose an insurer settles 95 claims out of 100, then their CSR stands at 95%.

You may use the following formula to compute a CSR :

For example, among the 10,000 claims filed in 2024-2025, the insurer settled 9,700. As a result, its CSR will be 97% (9,700/10,000 × 100) for that year.

Claim Settlement Ratio of LIC of India for the Last 5 Years

As per the IRDAI Annual Reports, below is a list of claim settlement ratios of LIC of India from the last 5 years:

How to File Claims at Life Insurance Corporation of India (LIC)?

Life Insurance Corporation of India (LIC of India) ensures that customers settle their claims as easily as possible by connecting and filing them hassle-free in emergencies or maturity. Below are the easy steps for filing the claims at LIC of India.

Process to File a LIC Maturity Claim

In the case of LIC endowment policies, the sum assured is payable at the end of the policy term. The LIC branch serving the policy sends a letter to the policyholder, mentioning the date and the policy money payable. The policyholder is entitled to return the discharge form fully completed with the policy document. After receiving the documents, the payment is processed to the receiver’s account.

Process to File a LIC Death Claim

The death benefits are payable in cases where the policy premiums are up-to-date or where the death occurs within the policy tenure. The first step is to intimate the LIC branch office about the death of the life assured. The LIC branch officer then asks for the documents. After receiving the supporting documents and duly filling out the death claim form, the officials start the verification process. After successful verification, the death claim amount is transferred to the beneficiary account.

Documents Required for Making Claims at LIC of India

The following documents are required to make claims at LIC of India.

• The Claim Form A.

• Original policy documents

• Certified extract from the death register

• Document of age proof (if age is not admitted)

• Proof of the title of the deceased’s estate (only in case the policy is not nominated, assigned or issued under M.W.P. Act.)

• The FIR report copy and post-mortem report (in case of accidental death) If the demise of the policyholder occurs within three years from the date of the revival, the following documents are required

• Claim Form B: Certificate of the medical attendant

• Claim Form B1: If the insured received treatment in a hospital

• Claim Form B2: Filled by the medical attendant who treated the last illness

• Claim Form C: Certificate of identity and burial or cremation, completed and signed by the person of known character

• Claim Form E: Employment certificate (in case the insured is employed)

• First Information Report

• Post Mortem Report and Police Investigation Report (in case of accident or unnatural death)

What are the Factors Influencing the Claim Settlement Ratio of LIC of India?

• The nature of the insurance policy can affect CSR. Some policies may be more complex, or there may be a higher risk of fraud, which could affect the ratio.

• Policyholders must comply with the terms and conditions of their insurance policies. If a policyholder does not comply with the policy terms, his claim may be rejected.

• The information given to the insurer at the time of buying the policy must be truthful and accurate. If a person is found to have provided wrong or misleading information, their claim might be denied.

• When making a claim, the insured person should promptly provide the necessary documents. If the paperwork is delayed, the CSR can be impacted.

Wrapping It Up

The Claim Settlement Ratio is a very important indicator of an insurance company's reliability and trustworthiness. The fact that LIC has had a high Claim Settlement Ratio for several years proves that the company has always taken care of its policyholders and has been efficient in settling claims. While making a choice with regard to a life insurance policy, keep in mind that LIC has a great Claim Settlement Ratio, among other important aspects in your decision-making process.

LIC Resources

FAQs