LIC Performs Better in Claim Settlements than Private Life Insurers : IRDA

According to latest report of Insurance regulator IRDA, claim settlement ratio of Life Insurance Corporation (LIC) appeared better than that of private life insurance companies. LIC found to be better at paying death claims. While LIC is the only state-run life insurance company in the market, there are about two dozen private insurers providing life cover.

According to the IRDA report, LIC has settled 97.42% cases relating to death claims during 2011-12 and improved its settlement ratio compared to the 97.03% during the previous year. The settlement ratio for private insurers has been found to improve to 89.34% during the year 2011-12 from 86.04% in 2010-11. The average settlement ratio of industry is 96.26% which is a marginal improvement from 95.58% a year ago.

The report says, 70% of the market share in the life insurance industry lies with the LIC, while the rest is with 23 private insurers during the year 2011-12.

Source: The Economic Times, The Hindu Business Lines