IRDAI released Claim Settlement Ratios for all Indian Life Insurance Companies in 2025
The Insurance Regulatory and Development Authority of India (IRDAI) has released the claim settlement ratio of all insurers in the country for the year 2025. The authority annually releases a handbook of Indian Insurance Statistics, having details about the claim settlement ratios of all the insurance companies in India.
Buying an insurance plan helps to protect our loved ones in some unforeseen events. Most people buy life insurance to protect their families financially if something unexpected happens to them. Policyholders pay regular premiums for the policy, and if something happens to the policyholders (like passing away), their family gets a sum of money from the insurance company to help them cover expenses and stay financially stable.
Buying life insurance is meant to protect your family financially, but it won’t be helpful if the insurance company doesn’t pay the claims when needed. How do you find out if your life insurance company pays claims on time? And by what percentage of claims does the company pay out compared to the total claims it received? To find out if your insurance company is reliable, you can take advantage of the claim settlement ratio.
Understanding the Claim Settlement Ratio
This ratio mentions the number of claims the company has paid out compared to how many claims it received. For example, if the company gets 100 claims and pays 95 of them within 30 days of receiving the claim, its ratio is 95% for a 30-day settlement.
The claim settlement ratio can help you figure out how trustworthy an insurance company is in paying claims to its policyholders. A higher ratio (closer to 100%) means the company is good at paying claims on time and is trustworthy, while a lower ratio might mean more claims are delayed or denied.
Claim Settlement Ratio of Life Insurers in 2025
IRDAI has recently released a list of the claim settlement ratios of all life insurers in the country, as of 2023-2024. According to the report, the claim settlement ratio of all insurance companies, including private companies and the Life Insurance Corporation of India (LIC), was 96.82% for claims settled within a period of 30 days. This means that out of the total claims, 96.82% were paid out within 30 days of receiving the claim.
Meanwhile, in the financial year 2023-24, the claim settlement ratio of private insurance companies stood at 99% of all the death claims requests within 30 days.
What is the Claim Settlement Ratio by Benefit Amount?
When evaluating an insurance company, honoring a claim is not the only parameter that should be considered. You should also consider the settlement ratio by benefit amount.
It measures the percentage of the total money an insurance company collects through premiums that it ultimately pays out in claims to policyholders’ beneficiaries. A higher ratio indicates that the insurance company is paying out more of the money it collects, and it is considered a positive sign as it shows the company’s ability to offer a fair settlement. On the other hand, a lower ratio might mean more claims are delayed or denied.
When it comes to the claim settlement ratio by benefit amount, HDFC is ranked at the top, with 99.98% of the total benefit amount paid out for claim settlement within 30 days. The ratio is closer to the Axis Max Life claim settlement ratio, which is 99.97% of the total benefit amount paid out for claim settlement within 30 days.
Claim Settlement Ratio of Life Insurance Companies 2025 in terms of Benefit Amount
| Insurance Company | Total Benefit Amount (2023-2024) | Total Claim Benefit Paid within 30 Days | % of Claim Benefit Paid within 30 Days |
| LIC | 17862.87 | 17011.43 | 95.23 |
| SBI Life | 1948.91 | 1920.34 | 98.53 |
| ICICI Prudential | 1866.88 | 1701.91 | 91.16 |
| HDFC | 1584 | 1583.61 | 99.98 |
| Axis Max Life | 1254.38 | 1254.05 | 99.97 |
| Tata AIA | 1086.15 | 1079.43 | 99.38 |
| Bajaj Allianz | 615.18 | 607.39 | 98.73 |
| Aditya Birla Sunlife | 496.52 | 496.26 | 99.95 |
| PNB Metlife | 462.19 | 460.92 | 99.72 |
| Kotak Mahindra | 335.71 | 335.69 | 99.99 |
| Reliance Nippon | 212.53 | 176.26 | 82.94 |
| Canara HSBC | 206.93 | 206.93 | 100 |
| IndiaFirst | 178.3 | 177.71 | 99.67 |
| Bharti AXA | 137.62 | 137.62 | 100 |
| Star Union | 120.71 | 105.37 | 87.29 |
| Shriram | 116.36 | 114.19 | 98.14 |
| Aviva | 105.24 | 105.24 | 100 |
| Bandhan | 79.92 | 79.92 | 100 |
| Ageas Federal | 66.65 | 66.65 | 100 |
| Edelweiss Tokio | 62.91 | 62.91 | 100 |
| Future Generali | 36.14 | 36.14 | 100 |
| Pramerica | 31.49 | 30.35 | 96.39 |
| Private Sector Total | 11004.72 | 10738.9 | 97.58 |
| Grand Total | 28867.59 | 27750.33 | 96.13 |
What is the Claim Settlement Ratio by Number?
The claim settlement ratio by number refers to the number of insurance policies that have been sold by each life insurance company during the year. As per the data, the claim settlement ratio of some life insurers, including Kotak Mahindra, Ageas Federal, Future Generali and Aviva, was 100%. This means these insurance companies paid out death claims for all the policies within 30 days of receiving the claims.
Claim Settlement Ratio of Life Insurance Companies 2025 in terms of Number of Policies
| Insurance Company | Total Number of Policies in 2023-2024 | No. of Policies Where Claim Was Paid Within 30 Days | % of Claims Paid Within 30 Days to Total Claims (In %) |
| SBI Life | 37,724 | 37,344 | 98.99% |
| AXIS Max Life | 19,569 | 19,529 | 99.79% |
| LIC | 829,318 | 799,612 | 96.42% |
| HDFC Life | 19,338 | 19,333 | 99.97% |
| Bajaj Allianz | 14,695 | 14,662 | 99.78% |
| ICICI Prudential | 13,411 | 12,997 | 97.09% |
| Reliance Nippon | 8,072 | 7,631 | 94.54% |
| Tata AIA | 6,375 | 6,348 | 99.58% |
| Aditya Birla Sun Life | 6,203 | 6,201 | 99.97% |
| PNB MetLife | 5,679 | 5,664 | 99.74% |
| Kotak Mahindra | 4,300 | 4,300 | 100% |
| Shriram | 3,799 | 3,752 | 98.76% |
| IndiaFirst | 3,300 | 3,298 | 99.94% |
| Canara HSBC | 2,444 | 2,444 | 100% |
| Bharti AXA | 1,996 | 1,996 | 100% |
| Star Union | 1,958 | 1,848 | 94.38% |
| Ageas Federal | 1,182 | 1,182 | 100% |
| Future Generali | 931 | 931 | 100% |
| Aviva | 775 | 775 | 100% |
| Pramerica | 734 | 723 | 98.50% |
| Edelweiss Tokio | 518 | 518 | 100% |
| Bandhan | 294 | 294 | 100% |
| Private Sector Total | 153,297 | 151,770 | 99% |
| Grand Total (LIC + Private) | 982,615 | 951,382 | 96.82% |
