MUMBAI: At 96%, LIC had the highest settlement ratio for death claims under individual death policies by value in FY22, data released by insurance regulator Irdai showed.
The corporation paid out Rs 28,408 crore of the Rs 29,585-crore claims it received. The ratio for the private sector was just over 94%, which shelled out Rs 17,409 crore of the Rs 18,494-crore claims it received. In the previous year, LIC had a claim settlement ratio of 98. 2% as against 94. 4% for the private sector.
LIC also had the lowest claims repudiation ratio in FY22 — having turned down only 1. 2% of the claims it received (in value terms) as compared to over 4% for the private sector.
The repudiation ratio for death claims is the percentage of claims turned down by the insurance company during the year as a share of total claims received. In terms of number of policies, LIC’s repudiation ratio was 0. 6% as against 1. 6% for the private sector.
According to the data released in Irdai’s FY22 annual report, the claims repudiation ratio for LIC improved from 1. 8% in FY20. At the same time, for the private sector, it worsened from 2. 9% in FY21.
For LIC, the ratio of pending claims dropped to 1. 2% from 1. 6% a year ago. In the case of private sector, the share of pending claims fell to 0. 7% from 1. 7% in the previous year.
