Settlement ratio of various companies for “Term Insurance”

POSTED BY Sunil Kumar ON January 20, 2013 8:06 pm COMMENTS (4)

Dear Team,

Please let me know as where can I find the settlement ratio of various companies for Term Insurance?

Can a company be judged based on just settlement ratio or should we consider other parameters, as well?


Sunil Kumar

4 replies on this article “Settlement ratio of various companies for “Term Insurance””

  1. Dear Sunil Kumar, the CSR for old insurers & the big daddy (LIC) is presenting a different picture for the fact that CSR is the combined death claims including ULIPs, Traditional & of course Term Plans. Now you are already aware how many actual term plans are sold by LIC agents so in a sense, CSR is not a true indicator.

    If one is honest enough to declare all his/her health & job related facts, there is almost nil chances of claim decline.



  2. SK says:

    IRDA publishes report every year. Recently they published for the year 2011-12. You can download it from here

    For your convenience, the page No. is 148.

    However, I suppose that the death-claim settlement ratio mentioned therein is for all death-claims (including term, Ulips etc) and not just for Term plans. (Anyone answering this question would please confirm this?)

    1. Yes it is for all plans

      The following is a response I gave in another thread and maybe found relevant here:
      On companies with low CSR

      No of term plans will always be lower than other policies at any point of time. Therefore it would not be totally wrong to assume that CSR primarily reflects non-term plan death settlement at any year of the company’s existence. That is the problem. If a company has trouble settling policies with much lower sum assured than a term plan why should I trust it to settle a larger sum assured without hassles?

      Of course the argument about honesty, disclosure etc. remains but a low CSR reflects a painful or at best rigorous claim settlement process which is not comforting. Term insurance is purchase only for that comforting thought and peace of mind.

  3. Settlement ratios can be found in the annual report available in the IRDAs website

    CSR is one factor which gives one peace of mind. However the foremost thing to do is to be honest and upfront while filling the application form

    Choose an insurer whom you are comfortable with and go with them.

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