IRDAI Releases Annual Claim Settlement Ratio Data in Handbook on Indian Insurance Statistics 2023-24

The Insurance Regulatory and Development Authority of India (IRDAI) has released its much-anticipated annual report, the ‘Handbook on Indian Insurance Statistics 2023-24’, in March 2025. This report provides crucial insights into the Claim Settlement Ratio (CSR) of various insurers, helping policymakers, stakeholders, and consumers make informed decisions about the reliability and efficiency of different insurance companies in India.

Understanding Claim Settlement Ratio (CSR)

Claim Settlement Ratio (CSR) is a significant metric used to determine the credibility of an insurer. It represents the percentage of total claims settled by an insurance company within a specific time frame, ensuring timely financial support for policyholders and beneficiaries.

Types of CSR Metrics:

1. CSR in terms of Number of Policies: It refers to the percentage of life insurance policies sold by an insurer during the financial year that were successfully settled.
2. CSR in terms of Benefit Amount: This indicates the proportion of total claims paid out by an insurer, ensuring higher financial security to beneficiaries within the policy tenure.

Overall Claim Settlement Ratio for FY 2023-24

According to the latest IRDAI report, the overall CSR for individual death claims within 30 days across both private insurers and the Life Insurance Corporation of India (LIC) stood at 96.82% for FY24. This highlights the efficiency of India’s insurance sector in ensuring prompt settlements for policyholders’ beneficiaries.

Performance of Private Insurers

India’s private life insurers recorded an impressive 99% CSR for individual death claims settled within 30 days. This underlines the private sector’s commitment to efficient claim processing and customer service.

Top Performing Life Insurers in FY24

The IRDAI report also highlights the top-performing life insurance companies based on different criteria such as the number of policies settled, CSR percentage, and benefit amounts disbursed.

1. Top Life Insurers by Number of Policies

Among the insurers, New Delhi-based Axis Max Life Insurance Limited emerged as the largest insurer in India in terms of the number of policies settled within 30 days. The company recorded a 99.79% CSR by settling 19,569 policies.

Closely following Axis Max Life Insurance was Mumbai-based HDFC Life Insurance Company Limited, which achieved an impressive 99.97% CSR by settling 19,333 policies within 30 days.

2. Top Life Insurers by Number of Policies Settled

India’s largest public-sector insurer, Life Insurance Corporation of India (LIC), topped the list in terms of the highest number of policies settled within 30 days. LIC settled a staggering 7,99,612 policies, achieving a CSR of 96.42%.

The second spot was secured by Mumbai-based SBI Life Insurance Company Limited, which settled 37,344 policies within 30 days, showcasing its robust claims settlement mechanism.

3. Insurers with a 100% Claim Settlement Ratio

Several insurers achieved a 100% CSR for individual death claims settled within 30 days. These include:

• Kotak Mahindra Life Insurance Company Limited (Mumbai)
• Ageas Federal Life Insurance Company Limited (Mumbai)
• Future Generali India Life Insurance Company Limited (Mumbai)
• Aviva Life Insurance Company India Limited (Gurugram, Haryana)

These companies processed all claims within the stipulated 30-day period, ensuring seamless claim settlements for policyholders.

4. Top Insurers by CSR Based on Benefit Amount

In terms of the total benefit amount paid out within 30 days, the leading insurers were:

• HDFC Life Insurance: Ranked first, with 99.98% of the total benefit amount paid out.
• Axis Max Life Insurance: Closely followed, with 99.97% of the total benefit amount paid out.

Key Insights from the IRDAI Report

The IRDAI report sheds light on crucial trends and statistics that define the insurance industry’s efficiency in claim settlements.

1. Private Insurers Lead in CSR: Private insurers settled 1,51,770 policies within 30 days, with the highest CSR of 99%.
2. Total Policies Settled: LIC and private insurers together settled 9,51,382 policies within 30 days, leading to a combined CSR of 96.82%.
3. Total Benefit Amount Paid:

• Private insurers paid Rs 11,004.72 crore in total benefit amount in FY24.
• Out of this, Rs 10,738.9 crore was settled within 30 days, with CSR by benefit amount standing at 97.58%.
• The cumulative benefit amount paid by both private insurers and LIC was Rs 28,867.59 crore, with Rs 27,750.33 crore settled within 30 days, bringing the overall CSR by benefit amount to 96.13%.

Exclusion of Sahara India Life Insurance Company Ltd (SILIC)

It is important to note that Sahara India Life Insurance Company Ltd (SILIC) was not included in the data for FY24. This exclusion follows IRDAI’s directive on June 2, 2023, which transferred SILIC’s life insurance business to SBI Life Insurance.

About the Insurance Regulatory and Development Authority of India (IRDAI)

The Insurance Regulatory and Development Authority of India (IRDAI) is the governing body overseeing the insurance industry in India. Established in 1999 and incorporated as a statutory body in April 2000, IRDAI ensures that insurance companies adhere to fair practices and provide timely claims settlements to policyholders.

• Chairperson: Debasish Panda
• Headquarters: Hyderabad, Telangana

IRDAI Releases Annual Claim Settlement Ratio Data (2023-24) – Key Highlights

Section	Details
Why in News?	IRDAI released the ‘Handbook on Indian Insurance Statistics 2023-24’ in March 2025, providing insights into Claim Settlement Ratios (CSR) of insurers.
What is Claim Settlement Ratio (CSR)?	CSR represents the percentage of total claims settled by an insurer within a specific timeframe. It helps assess an insurer’s reliability.
Types of CSR Metrics	– CSR by Number of Policies: % of policies settled within the financial year. – CSR by Benefit Amount: % of total claims paid out.
Overall Claim Settlement Ratio (FY 2023-24)	– The overall CSR for individual death claims settled within 30 days stood at 96.82%. – Private insurers recorded a 99% CSR for claims settled within 30 days.
Top Life Insurers by CSR (Number of Policies)	– Axis Max Life Insurance: 99.79% CSR (19,569 policies settled). – HDFC Life Insurance: 99.97% CSR (19,333 policies settled).
Top Life Insurers by Policies Settled	– LIC: 7,99,612 policies settled (96.42% CSR). – SBI Life Insurance: 37,344 policies settled.
Insurers with 100% CSR	– Kotak Mahindra Life Insurance (Mumbai) – Ageas Federal Life Insurance (Mumbai) – Future Generali India Life Insurance (Mumbai) – Aviva Life Insurance (Gurugram)
Top Insurers by CSR (Benefit Amount)	– HDFC Life Insurance: 99.98% benefit amount settled. – Axis Max Life Insurance: 99.97% benefit amount settled.
Total Claims & Benefit Amount Paid	– Private insurers: Settled 1,51,770 policies within 30 days. – Total policies settled (LIC + private insurers): 9,51,382. – Total benefit amount paid (private insurers + LIC): ₹28,867.59 crore. – Benefit amount settled within 30 days: ₹27,750.33 crore (96.13% CSR by benefit amount).
Exclusion from Data	– Sahara India Life Insurance Company Ltd (SILIC) was excluded due to IRDAI’s directive transferring its business to SBI Life Insurance on June 2, 2023.
About IRDAI	– Full Form: Insurance Regulatory and Development Authority of India. – Established: 1999 (Statutory body since April 2000). – Chairperson: Debasish Panda. – Headquarters: Hyderabad, Telangana.