Private sector shows improvement in settling claims: IRDAI report

MUMBAI: State-owned Life Insurance Corporation of India settled more claims while private sector showed significant improvement in settling claims, as they focused on customer service and satisfaction.

According to the annual report of Insurance Regulatory and Development Authority, the claim settlement ratio of LIC was 98.31%. For private insurers, settlement ratio had gone up by 2.24% at 93.72%.

The industry settlement ratio increased to 97.74 percent in 2016-17 from 97.43 percent in 2015-16 and the repudiation ratio decreased to 1.45 percent compared to the 1.73 percent in 2015-16.


Life insurance companies had settled 8.60 lakh claims on individual policies, with a total payment of Rs 13,850.62 crore. The number of claims rejected was 12,769 for an amount of Rs 657.77 crore.

The number of policies repudiated by LIC fell to 0.97% in 2016-17 compared to the 0.98% in previous year.

Though private insurers repudiated lesser number of policies, yet was higher compared to LIC. Private sector repudiated 4.85% policies in the year 2016-17 compared to the 6.67% in previous year.