Term Insurance Claim Settlement Ratio

Term Life Insurance Claim Settlement Ratio (CSR) is an important parameter that should be considered when choosing a right term insurance policy. This ratio measures the reliability of an insurance company by indicating the claims percentage the company has successfully paid out compared to the total number of claims received in a year. Understanding CSR can help you determine how likely your claim will be settled in case of an emergency.

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What is the Term Life Insurance Claim Settlement Ratio?

The claim settlement ratio (CSR) is the percentage of death claims settled by an insurance company compared with the total number of claims received during a financial year. The ratio is calculated annually and is one of the parameters that can help policyholders compare life insurance companies. The information is available on the insurance company's official website. The claim settlement ratio is measured for all insurance products and is not confined to the term policy alone.

The Insurance Regulatory and Development Authority of India (IRDAI) releases the details of term life insurance claim settlement ratios every year for people to be aware of all necessary details regarding life insurance companies. This transparency allows people to make an informed decision so that they can buy the best term insurance plans from the insurer with the highest CSR. Check the CSRs of all the Indian life insurance companies below.

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What is Term Insurance Claim Settlement Ratio (CSR) by Number?

The claim settlement ratio (CSR) by number shows the percentage of individual death claims settled by a life insurance company during a financial year. It is an important parameter to consider when comparing term insurance providers. However, the CSR reported by IRDAI covers individual life insurance claims across products and is not limited to term insurance policies.

For FY 2024–25, several life insurance companies reported claim settlement ratios of more than 99%. Aditya Birla Sun Life recorded the highest CSR at 99.86%, followed by PNB Met Life at 99.81% and Axis Max Life at 99.80%. HDFC Life reported a CSR of 99.72%, while Canara HSBC Life recorded 99.52%.

These figures represent the percentage of individual death claims paid by each insurer in FY 2025-26. But CSR should not be the only factor when selecting a term insurance provider. Also check policy terms, exclusions, claim-amount settlement ratio, financial strength and the insurer’s claim-handling process.

Axis Max Life Insurance 99.5%

Tata AIA Life Insurance 99%

HDFC Life Insurance99.4%

Bandhan Life Insurance 99.4%

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What Are The Claim Settlement Ratio of Term Life Insurance Companies 2025-26?

Here is a list of India's Top Term Insurance Companies and their respective Claim settlement amounts and Claim settlement ratios for the financial year 2025-26.

Name of the Life Insurance Company	CSR(in %)
Aditya Birla Sun Life Insurance Company Limited	98.86
Aviva Life Insurance Company India Limited	99.07
Bajaj Life Insurance Company Limited	99.33
Bandhan Life Insurance Limited	99.73
Bharti Axa Life Insurance Company Limited	99.21
Canara HSBC Life Insurance Company Limited	99.52
Edelweiss Life Insurance Company Limited	99.29
Generali Central Life Insurance Company Limited	99.57
HDFC Life Insurance Company Limited	99.72
ICICI Life Insurance Company Limited	99.34
IndiaFirst Life Insurance Company Limited	98.78
Kotak Mahindra Life Insurance Company Limited	99.50
Life Insurance Corporation of India	98.10
Axis Max Life Insurance Company Limited	99.80
PNB MetLife India Insurance Company Limited	99.81
Pramerica Life Insurance Company Limited	99.29
SBI Life Insurance Company Limited	98.56
Shriram Life Insurance Company Limited	98.52
Star Union DAI-ICHI Life Insurance Company Limited	99.01
Tata AIA Life Insurance Company Limited	99.45

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Note: The IRDAI 2025–26 annual report has not been published yet. However, most of the insurers have already published their 2025–26 Claim Settlement Ratio (CSR) on their official websites

Disclaimer: *The list of insurers mentioned are arranged according to the alphabetical order of the name of insurance company respectively. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

How to Calculate Term Insurance Claim Settlement Ratio (CSR)?

You can calculate term insurance claim settlement ratio using this formula:

Claim Settlement Ratio

Total claims settled in one FY Total claims received in a year

100

Here is an example to understand it better

Suppose a life insurance company received 1,000 claims in a year. It settled 950 claims, rejected 40, and 10 are still pending at year-end. The main CSR uses settled vs received as below.

1,000 Total Claims

950 Settled Claims

40 Rejected Claims

10 Pending Claims

The claim settlement ratio will be 950/1000 = 95%
The claim rejection ratio = 40/1000 = 4%
The claim pending ratio = 10/1000 = 1%

CSR is one of several factors to check—also look at the policy wording, persistency, complaint records, and financial strength of the insurer. Ratios are usually published in annual or public disclosures; definitions may differ slightly from IRDAI reporting to company headlines.

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*Note: You can use the term plan calculator to calculate the premium amount of your term insurance plan.

What is Considered a Good Claim Settlement Ratio for Term Insurance?

For an insurer, a claim settlement ratio of above 95% is considered good. It means the insurer has successfully settled at least 90 out of every 100 claims received during a financial year.
Keep in mind, though, that this number isn't fixed. It moves year to year based on how many claims actually came in and how many got settled. HDFC Life, for instance, closed FY 2025-26 with a ratio of 99.72% , a strong sign for anyone worried about their nominee facing delays when it matters most.
Still, the settlement ratio alone shouldn't be the deciding factor. It is equally important to evaluate other aspects such as claim turnaround time, customer reviews, premium affordability, available sum assured, and policy features before making a decision.

What Is the Importance of Term Insurance Claim Settlement Ratio?

To understand the importance of claim settlement ratio of term insurance companies, you need to understand what is term insurance. After assessing the CSR of different companies, you can choose the term insurance from the insurer with the most suitable CSR or the company with the highest claim settlement ratio.

It helps assure the financial protection and security of your loved ones

By purchasing a life insurance plan, you ensure the financial protection of your family against unfortunate events. When the insurer settles the claim, your family is more likely to have a hassle-free, transparent and simple claim process. Thus, you can rest assured that your family does not have to struggle to receive the sum assured.

Indicates the reliability of the insurance company

The term insurance claim settlement ratio indicates the ability of an insurer to pay the sum assured amount to you or your nominee. If your respective insurer is maintaining a high CSR consistently over a certain amount of time, they are considered to settle claims quickly and thus are called a reliable company.

Demonstrates the Insurer’s Commitment to Claim Support

A high claim settlement ratio reflects more than just the number of claims paid. It also indicates an insurer’s commitment to supporting nominees during a financially and emotionally challenging period. Insurers with a strong claim settlement record are generally more likely to handle genuine claims efficiently, helping families receive the intended financial support without unnecessary complications.
For policyholders, this serves as an important indicator of trustworthiness. Reviewing an insurer’s claim settlement ratio before purchasing a term insurance plan can provide valuable insight into how reliably it fulfills its promise when a claim arises.

Reflects a Smoother Claims Experience

A high CSR isn't just about the payout - it usually says something about how the whole process runs. Insurers who keep their numbers high year after year tend to trustworthy and have trained people, a clear process, someone actually available to help when a nominee calls in confused.
That matters more than it sounds. Less back-and-forth over documents, fewer delays, money that actually reaches the family faster at a point when they've got enough else to deal with.

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Why Claim Settlement Matters When Buying Term Insurance?

When you buy term insurance, you're buying peace of mind for your family. But that peace of mind means nothing if the company doesn't pay the claim when it's needed most. Here's why the claim settlement ratio matters:

It shows if the insurer keeps its word
A high claim settlement ratio means the insurer pays most of the claims it gets. It shows the company sticks to its promise.
It affects your family directly
If something happens to you, your family shouldn't have to run around for the money. A good track record means they get the payout without delays or hassle.
Fewer rejections, less stress
A low ratio often means more claims get rejected. And a rejected claim brings extra stress - legal, emotional, and financial — right when your family can least handle it.
It’s a strong indicator of trust
The claim settlement ratio is one of the easiest and most effective ways to judge how trustworthy an insurer is. Always choose an insurer with a consistently high ratio (usually 95% and above).
It’s the true test of your policy
Buying a plan and paying premiums is just the beginning. The real value of a term plan is realised only when your nominee receives the payout without hurdles.

How to Choose the Best Term Insurance Company in India?

To choose the best term insurance company in India, you should consider the following factors:

Claim Settlement Ratio

The term insurance claim settlement ratio (CSR) helps you understand the company’s claim settlement abilities over the past financial year. Using this, you can compare term plans from different insurance companies and purchase the plan from the company with the most suitable term plan claim settlement ratio.

Dedicated Customer Service

You should always opt for a term plan from an insurer with the most dedicated customer service, as it can help you in the long run. The top 10 term insurance claim settlement ratio companies offer 24x7 customer support and resolve customer queries regarding the policy.

Customer Experience

The customer reviews with the insurer give us an insight into the customer’s experience with the company. This way, you can choose a company with the highest claim settlement ratio and the best customer service.

Inflation

Inflation will reduce the worth of your savings. Hence, you should choose an insurance company with a ‘sum assured’ that fulfils your financial needs in the best possible way. You can easily use a term plan calculator to get an estimate of the premiums you need to pay for the desired life cover.

Term Insurance Riders

By choosing various kinds of riders, you will be eligible for a significantly increased financial benefit. There are various term insurance riders, such as critical illness, accidental death, accidental total permanent disability, waiver of premium, hospicare, and terminal illness, with which you will get a lump sum amount on the occurrence of the covered eventuality.

What are the Factors that Influence Term Insurance Claim Settlement Ratio?

The following factors will also impact the term plan claim settlement ratio:

1 Non-disclosure
If the policyholder fails to inform the company about his/her true condition. Any health issues should not be hidden. When the insurance companies come to know the truth about your health that can adversely affect your insurability, the insurance company may reject your claim. Thus, non-disclosures negatively impact the term plan claim settlement ratio.
2 Fraud
The policyholder may conceal information with the intention to cheat the insurance company. If the insurance company is suspicious about the authenticity of the proposer’s claim, the company may decline the claim. It will negatively impact the claim settlement ratio of term insurance companies.
3 Ignorance of policyholder
If the policyholder fails to follow the terms and conditions mentioned by the insurance company. It is an extremely unpleasant experience when the policyholder isn’t clear about the terms and conditions of the policy. You should spend time and effort to go through the contents of the policy. If you are not sure of any clause, you can approach the insurance company directly or the agent.
4 Nomination update/error
If the policyholder fails to fill the nomination column in the insurance proposal form. It will have a negative impact on the insurance company. The insurance company may fail to process the claim if there is a delay in identifying the legal heir. The nominee should be present while settling the claim. If there is any dispute between two parties with reference to the nominee, the issue should be resolved. No term plan claim settlement will take place until the dispute is resolved.

Wrapping It Up!

You should be aware of the term insurance claim settlement ratio while buying a suitable term policy. You can compare term plans from different insurers based on their term plan claim settlement ratios and make an informed decision about the term plan best suited for you. In addition to the term insurance claim settlement ratio, you should consider other prominent features as well when choosing the best term policy as per your objective.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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What is Term Life Insurance

FAQ's

Q: What is Claim Settlement Ratio (CSR) in term insurance?

Basically, it's how many claims an insurer actually pays out of everything it receives. If a company gets 100 claims and pays 97, that's a 97% CSR. It's one of the first things worth checking before you sign up for a policy.
Q: What are the top 3 claim settlement ratios?

This changes every year since IRDAI puts out fresh numbers annually. That said, most of the well-known insurers in India tend to sit above 98%. If you want the exact current top 3,the best option is to check the latest IRDAI report.
Q: Which company is best for term insurance?

Honestly, there's no one right answer here. It comes down to your age, what you can afford, and what you actually need covered. Most people do better comparing a handful of plans side by side - CSR, premium, riders, all of it - instead of looking a single "best" name.
Q: Why does claim settlement matter in term insurance?

Because the whole point of buying term insurance is that your family gets paid if something happens to you. A policy that looks good on paper but does not provide support (or rejects claims) in case of payout defeats the purpose entirely.
Q: What is the 3-year rule in term insurance?

Once a policy's been active for 3+ years, insurers generally can't turn around and reject a claim over small errors or missing details from when you first applied, unless they can show actual fraud. It's meant to protect policyholders after the early years.
Q: Why do term insurance claims get rejected?

Usually it comes down to a handful of things - wrong info given at purchase, premiums that lapsed, or a claim that just falls outside what the policy covers. Being correct about your health and medical history upfront, and keeping the policy active, cuts down the risk a lot.
Q: How is CSR calculated?

Settled claims divided by total claims received, times 100.
Q: What factors affect an insurer's CSR?

Things like non-disclosure at the time of buying, fraud, people not reading their policy terms carefully, or errors in nominee details , all of these can affect the CSR. .
Q: What else should I check besides CSR?

Premium cost, the riders available, and how good the customer service actually is.
Q: How do I find the best term insurance using CSR?

Check for IRDAI's latest report and line up the numbers across insurers. Go with whoever insurer has a high CSR consistently, not just one good year.
Q: Which insurer company offers the highest CSR ? ·

The insurance company with the highest Claim Settlement Ratio (CSR) depends on the specific category of insurance (Life or Health), as ratios fluctuate yearly around the 98%–99% mark for top performers.
Q: Which company offers the best CSR?

The company with the best Claim Settlement Ratio (CSR) depends on the specific type of insurance you need, as top performers vary between life, health, and general insurance.
Q: What is the Claim settlement average over the last 10 years for all insurers?

Most established insurance companies maintain a Claim Settlement Ratio (CSR) between 95% and 99%, though official public records from regulators like the IRDAI Annual Report are published annually rather than as a combined fixed 10-year average for every individual insurer.
Q: Why is the claim percentage important?

The claim percentage, known as the Claim Settlement Ratio (CSR), is important because it shows the percentage of insurance claims an insurance company successfully pays out compared to the total claims it receives in a year.

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

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*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

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We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

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