SBI Life Claim Settlement Ratio

Most policyholders look for the Claim Settlement Ratio of an insurer before purchasing a suitable life insurance product. The simple reason that drives the CSR interest is that claim settlement is one of the primary insurer services. The source for the information is the IRDA Annual Report, where every insurer’s ratio is tabulated. SBI Life Claim Settlement Ratio is an indicator for the number of claims settled in a given financial year.

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It will not be out of place to mention that the latest Death Claim Ratio per the IRDA Report for 2019-20 published on 10 February 2021, the SBI Life Claim Settlement Ratio is 94.52%. In non-technical language, it means that for every 100 claims registered with SBI Life, 94.52 were settled, and the rest repudiated. However, in the absence of clarity on the factored product range, the raw data is not the sole criterion to judge SBI Life’s performance.

What is Claim Settlement Ratio?

The primary aim of the policyholder is to cover the dependents with financial backup through death benefit in the event of demise. There is an array of life insurance products to satisfy every individual preference. In addition, the individual purchases a policy to match family needs for a secure financial future. What happens if the death claim is not settled and the beneficiaries face a financial disaster? A consistent record of accomplishment for settling death claims is the guarantee that reassures that the dependents are not short of funds to pursue their life goals in any unfortunate eventuality. It makes sense in this backdrop to check the Claim Settlement Ratio before making an informed choice. The Claim Settlement Ratio is determined by the number of death claims settled by the insurer against the number received. A higher percentage denotes a higher claim settlement efficiency of the insurer.  

SBI Life Insurance CSR

It is essential to understand how the SBI Life Claim Settlement Ratio is calculated. It is primarily the percentage of claims settled against claims received in a financial year. It is derived by dividing the number of claims settled by the total number of claims received in a financial year plus the previous year’s outstanding. It is expressed in terms of percentage for easy comparison with other insurers. Thus, in simple terms:

  • SBI Life Claim Settlement Ratio = Total SBI Life Claims Settled / Total SBI Life Claims Received.

(Total SBI Life Claims Received = SBI life Claims registered in the financial year plus claims pending at the year beginning)

As an example, let us consider the SBI Life Claim Settlement Ratio for the financial year 2018-19 as per the IRDA annual report:

SBI Life Claim Settlement Ration for 2018-2019

Pending Claims carried Over

Claims Registered

Total Claims 

Claims Settled

Claim Settlement Ratio






Source: IRDA Annual Report 

Though a great emphasis is laid on the above formula, it is sensible to look for the ratio in a different light by checking the settled amount also. It represents the insurer’s financial strength and ability to settle claims seamlessly. A higher CSR may show a lower ratio in terms of benefit amount payment. 

What does SBI Life CSR Represent?

Let us see how the SBI Life Claim Settlement Ratio has played out during the past few years:

SBI Life Claim Settlement Ratio based on the number count

Financial Year 

 Claims Registered

Claims Settled

Ratio in %





















The above grid represents the SBI Life Claim Settlement Ratio only for individual policies and not group policies. It shows the percentage of claims settled and paid compared to the number registered. The following example illustrates the result for the 2019-20 financial year.

  • Claims registered during the year (A): 22490
  • Claims settled during the year (B):       21258

The SBI Life Claim Settlement Ratio for 2019-20 = (B)/(A)*100 i.e. 21258/22490*100 = 94.52%. 

CSR is one of the determinant factors to purchase a policy. Here the year-to-year comparison is essential to check for consistency, and it is evident that the record of accomplishment of SBI Life has been good. However, it is also imperative to check the ratio based on the claim amount, as depicted in the following grid.  

SBI Life Claim Settlement Ratio based settled amount

Financial Year 

Total Claim Amount (Rs Crore)

Claim Amount Paid (Rs Crore)

Ratio in %





















The grid pertains to Individual policies only, based on the total sum assured of the registered claims. Thus, the ratio is calculated by accounting for the claim sum assured versus the claim amount settled for the financial year 2019-20. 

  • Amount of registered claims during the year (A): Rs 903.00 Crore
  • Amount of settled claims during the year (B):       Rs 810.35 Crore

The SBI Life Claim Settlement Ratio for 2019-20 = (B)/(A)*100 i.e. 810.35/903*100 = 89.74%. 

What Information do we get with SBI CSR?

The policyholder invariably consults the SBI Life Claim Settlement Ratio before deciding to buy a suitable plan in harmony with financial planning objectives and life goals. While it is an important indicator, it is essential to consider the following. 

  • The CSR does not depict the type of policies covered in the settled claims. 
  • The ratio is always denoted in percentage terms.
  • The repudiation percentage is arrived at by deducting the ratio from 100.
  • The ratio is for only the financial year, April to March next year, as per Indian norms. 

About SBI Life Insurance

SBI Life Insurance, called SBI Life, is the insurance arm of the State Bank of India, the largest public sector bank in the country. The insurer is involved in varied activities like child education, health, disaster relief management, and environmental issues. Through their “Customer First” ethos, SBI Life endeavors to provide a world-class operating efficiency using a digital environment for its customers, distributors, and employees. It has a pan-India presence, backed by the SBI Brand in the pursuit of excellence. Against this backdrop, the consistent SBI Life Claim Settlement Ratio over the years has touched millions of families since its incorporation in October 2000

The Final Words

The SBI Life Claim Settlement Ratio is a measure of its credibility regarding a seamless claim settlement experience. A high ratio shows the insurer positively, thereby signifying that the claim settlement probability is high. A low ratio, on the other hand, suggests that the claim settlement may be jeopardized. While CSR is not the sole criterion, it is a critical factor in purchasing a policy.


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