IRDA has issued their Claim Settlement Ratio 2014-2015 recently and in that they have shared a long list of all insurance companies claim settlement ratio. Claim settlement ratio is the number which will tell you how many claims has been processed by that company successfully. Claim settlement ratio is one of the most important factor one should consider while buying a insurance plan. This ratio simply set the reputation of that company and people trust factor blindly. According to the latest claim settlement ratio issued by IRDA LIC is the winner straightway. LIC is doing the same from long time and this simply reflect the trust of people on LIC.
IRDA Claim Settlement Ratio 2014-2015 – LIC is the best Insurance company in India
You can easily download the IRDA document from the link and read the data. It will be under statement section at the end of the document. Although it is not organised well understand. One of my blogging friend Basu has collected that data beautifully in his blog Basunivesh.com. I am sharing the same image here to understand the point.
IRDA Claim Settlement Ratio 2014-2015
IRDA Claim Settlement Ratio 2013-2014
Straightway you can see that LIC data is marginally huge than other companies. No. of claim raised in this year is 7,60,333 which is huge compared to others. LIC has huge network and it has penetrated in remote places as well with agents. So no doubt they sell most number of insurance policies every year despite we review negatively. Anyway among them the 7,46,212 is already settled or paid. They have distributed 8905.4 crore amount to those family who may lose their beloved one or policy matured.
If you check besides LIC than there are other players as well who have a very good claim settlement ratio or percentage. ICICI Prudential, HDFC LIfe, SBIlife, Max Life, Kotak Life, Star Union, Bajaj Allianz, Sahara Life, Met Life, IDBI Federal – everyone has a Claim settlement ratio more than 90%, which is good. But at the same time you have check out how many claims actually they received.
E.g. if you see Sahara Life has receive only 836 claim and settled 754. If you compare this data with LIC claim data then you can easily understand why LIC is completely out of this league. So the trust of people towards LIC policies has again make them the best insurance company. But I am feeling LIC should consider this point and make their polices more investment friendly so that people can actually get some benefit.
Does LIC deserve the tag of best insurance company?
If you think in a different way LIC has created huge job in our society. Many people are leading their life by selling LIC policies. This is one of the strength of LIC as it has a huge network of agents in every corner of the country. Modern day companies mostly advertise their policies on print media, Online advertising or TV. Don’t forget majority of Indian population don’t access internet and paper. So they are not able to reach where LIC is able to. Majority of the premiums collected from customers are distributed to these agents. So in a different angle LIC gave job to many needy families. That’s why LIC has able to win the trust of people from long time. But future is not good for them as competition is increasing.
What do you think is LIC the best insurance company? Share your views here to make this discussion worth for investors who are yet to buy a LIC policy.