The Insurance Regulatory and Development Authority has said that the Life Insurance Corporation of India has performed better in terms of claim settlement ratios as compared to private life insurance companies.
"The claim settlement ratio of LIC was better than that of the private life insurers. Settlement ratio of LIC increased to 97.03 % during the year 2010-11 when compared to 96.54 % during the previous year" IRDA said in its annual report released this week.
The percentage of claims rejected by LIC stood at 0.01%. The ratio of repudiations to total reported claims declined from 1.21% in the previous year to 1.00% in 2010-11. Compared to LIC, private insurers rejected a large number of claims. Their ratio of repudiations increased to 8.90% in 2010-11 from 7.61 % in 2009-10. Overall, the industry's settlement ratio has improved slightly at 95.58 % in 2010-11 from 95.24 % in 2009-10 but the repudiation ratio has also gone up to 2.04 % in 2010-11 from 1.93 % in 2009-10.