Mumbai |As per the annual report released by the Insurance Regulatory and Development Authority, the Life Insurance Corporation of India (LIC) continues to excel with an impressive claim settlement ratio of 98.5% as of March 31, 2023. Despite a marginal decrease from the previous year’s 98.7%, LIC outshines its private sector counterparts, who reported a claim settlement ratio of about 98%.
The report also sheds light on the dynamics of the group life insurance business for fiscal 2022-23. Out of a total of 12.5 lakh claims, life insurance companies collectively settled 12.4 lakh claims, achieving an outstanding settlement ratio of 99.4%. Notably, LIC, the leader in the sector, settled nearly 99% of group claims, while private life insurers demonstrated a commendable ratio of 99.4%.
Surrenders/withdrawals saw a significant increase of 25.6%, reaching almost 2 lakh crore during the same period. LIC accounted for the majority, contributing 56.3% to this figure. The overall benefits paid by the life insurance industry in 2022-23 amounted to about Rs 5 lakh crore, constituting 64% of the net premium.
For individual life insurance business in the same fiscal year, life insurance companies settled 10.6 lakh out of a total of 10.8 lakh death claims, disbursing a total benefit amount of Rs 28,611 crore. The report highlights that 10,822 claims were repudiated, amounting to Rs 1,026 crore, while 4,340 claims were rejected, totaling Rs 24 crore. As of the end of the year, 833 claims amounting to Rs 350 crore were pending.
Furthermore, the report provides insights into the issuance of new policies during 2022-23. Life insurers issued a total of 284.7 lakh new policies under individual business, with LIC issuing 204.3 lakh policies (71.8%) and private life insurers issuing 80.4 lakh policies (28.3%). The private sector insurers registered an 8.8% growth, while LIC experienced a 5.9% decline, and the industry as a whole registered a 2.2% decline in the number of new policies issued compared to the previous year.
