IRDAI Data Reveals Which Life Insurers Paid Death Claims Fastest In FY25

Choosing the right life insurance policy is not just about premiums or coverage; it is also about how quickly and fairly a company pays claims when a policyholder passes away. Every year, the Insurance Regulatory and Development Authority of India (IRDAI) releases a detailed handbook that shows how different life insurers performed in settling death claims.

The latest data for the financial year 2024-25 gives a clear picture of which companies paid claims on time and which lagged, helping customers make more informed decisions.

How Life Insurers Performed In 2024-25

According to the IRDAI’s Handbook on Indian Insurance Statistics 2024-25, the overall life insurance industry, including private insurers and LIC, settled 97.10 per cent of individual

death claims within 30 days in FY 2024-25. This means that in most cases, families received claim payments quickly after submitting the required documents.

Private life insurers performed slightly better, paying around 97.30 per cent of their individual death claims within 30 days. Claims cleared within this time frame are considered the most efficient and customer-friendly, as delays can cause financial stress for grieving families.

Among individual insurers, Aditya Birla Sun Life, HDFC Life, PNB MetLife, and Shriram Life reported a 100 per cent claim settlement rate within 30 days in terms of the number of policies. Other strong performers included Star Union Dai-ichi (99.2 per cent), SBI Life (99.1 per cent), and Tata AIA (98.7 per cent).

At the lower end, Canara HSBC (89.1 per cent), Bandhan Life (88.5 per cent), Aviva (87.6 per cent), and INDIAFIRST Life (87 per cent) were among the slowest in settling claims within 30 days. LIC, despite handling the highest number of claims, over 8.23 lakh, settled 97.1 per cent of them within the 30 days.

Why Claim Settlement By Amount Also Matters

Looking only at the number of claims settled does not tell the full story. It is also important to see how much money insurers actually paid out compared to the total claim amount due. This is called claim settlement by benefit amount. A higher percentage here shows that an insurer is paying most of the money it owes without major delays or disputes.

In this category, Shriram Life, Aditya Birla Sun Life, HDFC Life, and PNB MetLife again reportedly stood out by paying 100 per cent of the total claim benefit amount within 30 days. Star Union followed closely at 98.2 per cent, while SBI Life paid 98 per cent of its total claim amount on time.

However, several insurers lagged behind when it came to paying the full claim amount quickly. LIC settled only 79.7 per cent of its total claim benefit within 30 days, while INDIAFIRST Life was the lowest at 62.8 per cent. This suggests that while claims may have been approved, full payments were slower in some cases.

Overall, private insurers together paid 91.4 per cent of their total claim benefit amount within 30 days, while the industry as a whole stood at 84.2 per cent.

What Is A Claim Settlement Ratio?

A claim settlement ratio shows how many claims an insurance company pays out of the total it receives in a year. It is calculated using this formula:

Claim Settlement Ratio = (Total number of claims settled during the year / (Total number of claims received during the year + Claims outstanding at the beginning of the year)) × 100

For example, if a company has a claim settlement ratio of 92 per cent, it means that out of every 100 claims it received, it settled 92 within the given time.

Experts say policyholders should look at both claims settled by number and claims settled by amount before choosing an insurer. This gives a clearer picture of how reliable and customer-friendly a company truly is.