Life Insurance Corporation of India (LIC) continues to maintain its lead in the life insurance industry with respect to claims settlement, according to Insurance Regulatory and Development Authority of India’s annual report.
“The claims settlement ratio of LIC was better than that of the private life insurers,” the regulator said in its annual report.
According to the report, the settlement ratio of LIC increased to 98.19 per cent during the year 2014-15, compared to 98.14 per cent during the previous year.
Incidentally, private life insurers saw an improvement in their claims settlement ratio.
The claims settlement ratio for private life insurers increased 89.40 per cent during financial year 2014-15 from 88.31 per cent during the previous year.
Private insurers had repudiated more number of claims (9,486) compared to LIC (8,689).
The percentage of repudiations for private insurers was 7.8 per cent in 2014-15 against 8.03 per cent in 2013-14.
Incidentally, the life insurance industry saw a 25 per cent fall in the number of complaints registered against the industry at 2,78,992 during 2014-15 as against 3,74,620 during the previous year.
At 52 per cent, complaints of unfair business practices constituted the largest class of grievances, in the life segment during 2014-15, compared with 56 per cent during 2013-14.
This was followed by policy servicing related complaints which constituted 20 per cent of the total grievances in the life segment during 2014-15 compared with 17 per cent in 2013-14.
During 2014-15, private life insurers resolved 96.93 per cent of the complaints reported, while LIC resolved all 100 per cent.
(This article was published on January 20, 2016 in Business LIne)