Max Life Claim Settlement Ratio

The Claim Settlement Ratio from any provider, also known as the CSR, is one of the most reliable methods of checking the provider’s trustworthiness. It is something one must always ensure to check prior to purchasing a policy. The IRDA Annual report gives this figure for every provider, including the Max Life Claim Settlement Ratio.

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What this ratio tells us is the way the provider attended to the claims in any given financial year. For example, in the year 2019-20, the Max Life Claim Settlement Ratio was 99.22%. That means that more than 99 out of every 100 claims were accepted and settled. This points to a very high ratio, which shows the sincerity of the provider towards its clients. It shows that the provider cares enough to honour their commitments most of the time and repudiates only in exceptional circumstances. It points to a high degree of certainty when choosing this particular provider. 

What is the Claim Settlement Ratio?

Before moving on to discussing the specifics of Max Life Claim Settlement Ratio, it is important for everyone to understand what Claim Settlement Ratio, or CSR, means in general. The primary reason a policyholder purchases it is so that in the case of their premature death, their loved ones do not have to live without any support. Throughout their lives, they pay a premium with the understanding that if anything were to happen to them, their nominees will get a payout, which will take the cover of their lives. 

However, when the nominees come to claim the settlement, it is imperative that the provider accept it. The amount of claims accepted gives the claim settlement ratio. The higher it is, the higher the total amount of claims settled. Here, the particular CSR under discussion is the Max Life Claim Settlement Ratio.


Coming particularly to Max Life Claim Settlement Ratio, before one reports the figures, they must first understand what it means. Max Life receives a fixed amount of claims every financial year. Their team checks the claims and whichever matches their standards they settle them. The rest they repudiate. Using these metrics, one calculates the CSR. The basic calculation mechanism is given below:

  • Max Life Claim Settlement Ratio = Claims that Max Life Claims Settles in a Financial Year / Claims in total that Max Life receives in the same Financial Year

    • Note: Financial year in India begins from April of one year and goes to the March of next year.

Keeping this particular calculation in mind will help people understand the Max Life Claim Settlement Ratio given below:

MAX Life Claim Settlement Ration for 2019-2020
Total Claims Claims Paid Claim Settlement Ratio Claims Repudiated Claims Repudiated Ratio
15463 15432 99.22% 120 0.78%
Source: IRDA Annual Report 

Looking at the above Max Life Claim Settlement Ratio, one can see that there were a total number of 15463 claims in the financial year 2019-2020. Out of those, 15432 claims were settled. This means Max Life Insurance accepted those many. The balance, which amounted to 120, was repudiated. The total comes to 15552, which is 89 more than the total claims. Thus, this figure is a carry-forward from the previous year.

What does Max Life Claim Settlement Ratio Represent?

To get a better idea of what the Max Life Claim Settlement Ratio represents, one must look at a trend rather than isolation. Seeing only one financial year does not give an indication of the performance of the provider over the years. Hence, it is always important to check over the financial years. That is given below:

Financial Year  Ratio in %
2015-16 96.95
2016-17 97.81
2017-18 98.26
2018-19 98.74
2019-20 99.22

What the above grid shows very clearly is that the Max Life Claim Settlement Ratio has increased consistently over the years. It was just shy of 97% five years ago, but four years ago, it breached that benchmark. After that, for two consecutive years before the last recorded ratio, it even breached the 98% mark. Finally, it outdid all its previous performances in 2019-2020 by registering an astounding 99.22% CSR. That is the highest amongst all competitors.

Another way to get a proper representation from the Max Life Claim Settlement Ratio is by checking the total amount paid off. The total number of settled claims can look inflated if only the smaller claims are settled but the larger claims are not. This particular settlement ratio is given as follows:

  • Max Life Claim Settlement Ratio (by amount) = Total claim amount Max Life settled in a Financial Year / Total claim amount made to Max Life in the same Financial Year.

For the Financial Year 2019-2020, it is given below:

MAX Life Claim Settlement Ratio based settled amount
Financial Year  Total Claim Amount (Rs Crore) Claim Amount Paid (Rs Crore) Ratio in %
2019-20 595.43 562.54 94.48

What Information do we get with Max CSR?

There are various pieces of information one can get from the Max Life Claim Settlement Ratio. Some of them follow:

  • The CSR is cumulative of all claims from the provider.

  • The ratio is calculated for a financial year

  • The ratio is generally depicted in percentage terms

About Max Life Insurance

Max Life Insurance is a joint venture between Max India Limited and Mitsui Sumitomo Insurance Co. Ltd. It is the insurance arm of Max Financial Services. It is the largest non-public, the non-bank insurance provider in India. It began operations in 2001. It has its headquarters in New Delhi, India. It has an exceptional organization of distribution channels through agents, brokers, and banks. It carries a wide range of products in its portfolio, including linked, non-linked, participating, non-participating, health, pension, annuity, child, protection, retirement, savings, growth, term, individual and group plans. The Max Life Claim Settlement Ratio is calculated as an average on all these products. This article will further discuss this ratio in subsequent sections. 

The Bottom Line

The Max Life Claim Settlement Ratio shows how credible the provider is when they promise their clients life cover. They have the best market ratio at 99.22%, which shows their trustworthiness. Furthermore, they also have a very high claim settlement ratio by an amount of over 94%. Both these indicate that it is one of the best in the industry when it comes to following through with its promises.


  • How long does it take to get a claim settlement?

    A1. The company settles the claims in one to two weeks, on average. The requirements for processing are as follows:
    • There should be no outstanding policy premiums.
    • There are no suspicious circumstances surrounding the death.
  • What are some of the benefits from this particular provider?

    A2. Some of the reasons Max Life is such a strong provider are as follows:
    • High processing speed
    • 24 x 7 support services
    • Dedicated personnel handling each claim
    • One can do the entire process online
    • High CSR as compared to the rest of the industry
  • What is the process of getting a claim honoured by Max Life?

    A3. The process of getting a claim settled is as follows:
    • Register claim
    • Submit documents
    • Max Life evaluates the claim
    • Max Life conveys the decision
    • Max Life settles a claim
  • What are the documents the provider requires for settling a claim?

    A4. The documents that Max Life requires are given below:
    • Original policy document
    • Original or attested death certificate/summary with the death claim form
    • NEFT mandate form and cancelled check from the bank
  • What is the time limit to register a claim?

    A5. The time limits to register a claim are as follows:
    • As soon as possible except as given further
    • After 28-30 days in the case of dreaded disease or critical illness

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