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IRDA Claim Settlement Ratio 2021-22 Term Insurance

When you purchase a term insurance plan, you always ponder that your nominee/beneficiary should receive the sum assured after your death. This payment will make sure that your family/dependants have sufficient capital to achieve their financial objectives in the future. What if, in the case insurance company does not settle the claim of a beneficiary?

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Therefore, it is very important to know which insurance company has sustained a good record in claim settlement. 

Claim Settlement Ratio - An Overview  

The Claim Settlement Ratio or CSR is the % of claims which are settled by an insurance provider versus the number of received claims. In simple words, it is an indicator that how many death claims are settled in a fiscal year by a term insurance provider. For example, if the Claim Settlement Ratio or CSR of an insurance company is 96 percent, it simply indicates that out of hundred received death claims, an insurance company has settled 96 death claims. 

In this, the claim settlement ratio is 96 percent and the outstanding 4 percent claims are repudiated by the insurance provider on specific grounds. One can easily check the details for claim rejection by the company while purchasing a term insurance policy. With CSR, an individual can easily assess the customer-centricity of the term insurance company while dealing with death claims.  

The claim settlement ratio is calculated as the ratio of the number of death claims settled to the claims received. 

CSR = Total Claims Paid/ Total Claims Received 

IRDA Claim Settlement Ratio 2019-20 Term Insurance 

IRDAI i.e., Insurance Regulatory and Development Authority of India is the apex body that regulates and manages the insurance industry of India. The main purpose of IRDA is to safeguard the policyholder’s interest and ensure the insurance sector’s growth in India. 

The IRDA publishes the value of claim settlement ratio of all the 24 insurance companies in India annually. The report involves all the accurate percentages, figures, number of claims made by the life assured, number of claims settled, and the number of rejected claims. On 10th February, IRDA Claim Settlement Ratio 2019-20 term insurance has published. 

According to this report, Max Life Company has the maximum CSR with 99.22%, trailed by HDFC i.e., 99.07%, and Tata AIA i.e., 99.06%. As per the IRDAI 2019-20 Annual Report, among the high-ranked 10 insurance companies, 9 have a CSR above 98%. LIC, the largest life insurer has 96.69% of CSR for 2019-20. 

Claim Settlement Ratio of Life Insurance Companies – IRDAI Annual Report 2019-20

The table illustrates the latest death CSR of ten life insurers for the year 2019-20: 

Individual Death Claim Settlement Ratio

Overall Claims 

Paid Claims

Claims Rejected 

Insurance company 



Total Claims (in %)


Total Claims (in %)

Max Life 












Tata AIA 






Pramerica Life 






Exide Life 






Canara HSBC OBC 






Reliance Nippon 






Bajaj Allianz












ICICI Prudential 






Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

Repudiation of claims is - how many deaths claims the company found to be unacceptable and therefore did not pay the claimed amount. 

It is also very important to assess the CSR of a benefit amount. You should not individually check the settled claims but while purchasing a policy, you should also see the amount of benefit settled by the company. A life insurer might have a maximum % of CSR but a low % while compensating the amount of benefit. This is especially in case the life insurer pays a maximum number of claims of low amounts of benefit and rejects policies with high benefit amounts. Therefore, while choosing an insurance provider, always ensure that the company is scoring well on both scales i.e., CSR and settlement of the benefit amount. 

Why Is the IRDA Claim Settlement Ratio Important? 

Purchasing a life insurance policy is a long-term decision. Not only you are required to pay a certain amount of premium to the insurer to avail of the policy benefit(s), but you also have to be sure of the claim settlement trend of the company so that it does not get rejected at the time of death claim. 

CSR plays an important role to make an informed decision about a term insurance provider. Moreover, it is important to compare and buy an insurance policy. Try to select an insurer with a high Claim Settlement Ratio. CSR is a reliable metric that helps you determine if a chosen insurer is trustworthy or not so that your loved ones will not have to struggle to receive the insurance benefit. 

Wrapping It Up!

As a buyer or policyholder, you can take an indication from the claim settlement ratio. However, the IRDA Claim Settlement Ratio 2019-20 term insurance is a helpful report to buy an insurance plan. The higher the CSR, the more reliable the company is. However, with CSR, you must also consider some other factors of the company as stated above. 

Additionally, to ensure hassle-free claim settlement, you must be transparent and sincere while filling application form of the insurer or insurance product. By this, you can make sure that your loved ones do not face any difficulty while submitting a claim to the company in your absence.

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