Who settles insurance claims fastest in 2026? Check if your insurer is in top 10
Many people buy insurance to make sure their family is financially safe if something unexpected happens. But buying a policy is only one part of the decision. The bigger question is whether the insurer will actually pay the claim on time.
With hospital bills, daily expenses and the cost of living rising sharply, life insurance has become more important than ever for Indian families. Many people buy insurance to make sure their family is financially safe if something unexpected happens. But buying a policy is only one part of the decision. The bigger question is whether the insurer will actually pay the claim on time.
One of the best ways to judge this is by looking at the claim settlement ratio. This shows how many claims an insurance company pays and how quickly it does so.
To help policyholders make informed choices, the Insurance Regulatory and Development Authority of India publishes detailed claim settlement data every year in its Handbook on Indian Insurance Statistics.
WHAT IS A CLAIM SETTLEMENT RATIO?
Claim settlement ratio refers to the percentage of claims an insurance company pays out of the total claims it receives during a specific period.
The formula used is:
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, a claim settlement ratio of 92% means that out of every 100 claims received, the insurer settled 92 claims on average within the given timeline.
The latest handbook for 2024-25 gives a clear picture of how life insurers performed in settling individual death claims and which companies paid claims the fastest.
LATEST CLAIM SETTLEMENT RATIOS OF LIFE INSURERS IN 2026
According to the IRDAI handbook, the overall life insurance industry, including private insurers and the Life Insurance Corporation of India, settled 97.10% of individual death claims within 30 days in FY2024-25.
This means that out of all individual death claims paid during the year, 97.10% were settled within 30 days of claim intimation. Claims settled within this period are considered the most prompt and effective.
Private life insurers performed slightly better than the industry average. They settled around 97.30% of individual death claims within 30 days during FY2024-25.
CLAIM SETTLEMENT RATIO BASED ON NUMBER OF POLICIES
When claim settlement is measured by the number of policies, Shriram Life Insurance topped the list. The insurer settled all its individual death claims within 30 days, reporting a claim settlement ratio of 100%.
Aditya Birla Sun Life Insurance, HDFC Life Insurance and PNB MetLife followed closely, each reporting a settlement ratio of 99.98%. Star Union Dai-ichi Life Insurance stood at 99.25%.
SBI Life Insurance settled 99.14% of its claims within 30 days, while Tata AIA Life Insurance reported a ratio of 98.66%. ICICI Prudential Life Insurance and Future Generali Life Insurance both stood at 98.15%.
LIC, which handles the largest number of claims in the country, settled 97.08% of individual death claims within 30 days. While its percentage is slightly lower than some private insurers, LIC processed over 8.48 lakh claims during the year, far more than any other life insurer.
IndiaFirst Life Insurance reported a settlement ratio of 86.98% based on claims paid within 30 days.
CLAIM SETTLEMENT RATIO BASED ON BENEFIT AMOUNT
Claim settlement data based on benefit amount shows how much of the total claim money collected by insurers was paid within 30 days. This is important because it reflects how insurers handle high-value claims.
Shriram Life Insurance, Aditya Birla Sun Life Insurance, HDFC Life Insurance and PNB MetLife led this category as well. Each of these insurers paid 100% of the total claim benefit amount within 30 days during FY2024-25.
Star Union Dai-ichi Life Insurance followed with 98.20% of the benefit amount paid within 30 days. SBI Life Insurance settled 98.00% of the total benefit amount in the same period.
Future Generali Life Insurance paid 97.20% of its claim benefit amount within 30 days. Pramerica Life Insurance settled 94.10%, while Tata AIA Life Insurance paid 93.60%.
ICICI Prudential Life Insurance reported 90.90%. Bharti AXA Life Insurance stood at 89.70%, Ageas Federal Life Insurance at 89.30% and Edelweiss Life Insurance at 87.40%. Reliance Nippon Life Insurance settled 84.60% of its total benefit amount within 30 days.
WHY BENEFIT AMOUNT DATA IS IMPORTANT
Looking only at the number of claims settled does not give the full picture. Policyholders should also check how much money insurers actually pay out.
A high claim settlement ratio by benefit amount shows that the insurer is paying a large share of the total claim value it receives. This is a positive sign of financial strength and fair claim handling.
Lower ratios may point to delays, disputes or higher rejections, especially in larger claims. Claims settled within 30 days are seen as the most reliable measure of an insurer’s efficiency.
IMPORTANT NOTES FROM IRDAI DATA
IRDAI has clarified that the life insurance business of Sahara India Life Insurance Company Ltd was transferred to SBI Life Insurance Company Ltd through an order dated June 2, 2023. The data for FY2024-25 does not include Sahara India Life Insurance.
IndiaFirst Life Insurance stated that as per its Form L-39 public disclosures for FY2024-25, 3,639 out of 3,640 claims, or 99.97%, were settled within 30 days from the date of receipt of the last requirement. Public disclosures are IRDAI-mandated documents that insurers must publish every quarter.
The latest IRDAI data shows that most life insurers in India are settling claims quickly, with several companies reporting settlement ratios above 99%. Life insurers, especially private players, have shown strong performance in settling individual death claims within 30 days.
For anyone planning to buy a life insurance policy, experts suggest checking both claim settlement ratios by number of policies and by benefit amount. Together, these figures give a clearer and more realistic picture of how dependable an insurer is when it comes to paying claims.
(Source of data: Handbook on Indian Insurance Statistics 2024-25, IRDAI)