Term Insurance Claim Settlement Ratio 2024-2025 for top term insurers as per IRDAI annual report
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India is a country where you can find many people who are the sole breadwinners of their families. Ever imagined what may happen if that person passes away leaving behind his/her family? Well, in one such situation, the family goes through a difficult financial patch. To avoid such a situation, whether you are the only breadwinner or not, you must buy a term insurance policy. It can be of great help to your family when you are not around anymore.
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And as you proceed to buy one such policy, ensure to check the term insurance claim settlement ratio. This will give you a good idea of what to expect from the insurance provider. If you are wondering what the claim settlement ratio is or how it can be of help to you, then keep on reading.
What is Claim Settlement Ratio?
Also called CSR, Claim Settlement Ratio is the ratio of the number of claims that have been approved and the sum of claims that have been received by an insurance company. This ratio is measured each year. The Claim Settlement Ratio is available on the official website of insurance companies. Claim Settlement Ratio is not only measured for term insurance policies but for all types of insurance products.
Significance of Claim Settlement Ratio
As the importance of term insurance Claim Settlement Ratio is concerned, here are some of them mentioned below:
# You can have an idea of the reliability of the insurance company
By looking at the CSR, you will be able to understand how reliable the insurance company is. The higher the CSR of an insurance company is; the better chances are of the claims being settled. Therefore, even if you are not there anymore, you will not have to be worried about how your family will take care of their finances.
# You can rest assured that your loved ones are secured
Financial struggles are something that we never want our loved ones to go through. And when you buy a term insurance policy from an insurance company with higher CSR, you can be relaxed that in a situation when you are not around, your family will still be financially secure.
CSR of Top Life Insurance Companies as per IRDAI Annual Report 2024-25
As we know, CSR is calculated based on the claims settled over the total claims in a financial year. Here is a table mentioned below that illustrates the Claim Settlement Ratio of insurance companies.
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4 Factors that may affect Claim Settlement Ratio
Some of the factors that may influence the Claim Settlement Ratio are mentioned herein below:
1. Fraud
If you do not provide the required information with the intention of cheating on the insurer. And if the insurer is suspicious of your intentions or finds it out, they may even decline the claim. This may then leave a negative effect on the CSR.
2. Nomination error
If you do not fill the nomination column in the insurance proposal form you get, it will leave a negative impression on the insurer. If the insurer cannot identify the legal heir, they would not be able to process the claim. The nominee has to be present during the claim settlement.
3. Non-disclosure
If you have a certain kind of disease or condition, and you do not inform the insurance company about it, when the insurer comes to know about it, they may reject your claim.
4. Not enough information about the policy
As a policyholder, you must know all the terms and conditions of the policy that you are going to buy. This can help you to avoid any last-minute surprises. In case you are not very sure about a certain clause, it is better to have clarity from the insurance company about the same.
Term Insurance Claim Settlement Ratio
A CSR of more than 80% should be considered good.
Max Life Insurance Company Limited has the highest CSR of 99.35%. However, you can also take a look at various other insurance companies that offer term insurance policies.
CSR is checked by calculating the total number of claims received against the total number of claims that have been settled by an insurance company.
The sum assured of the term insurance received upon maturity or surrendering a policy, or on the death of the policyholder is tax-free under Section 10(10D) of the Income Tax Act.

Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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