Top 10 Term Insurance Claim Settlement Ratio Companies

Quick Overview

Claim settlement ratio (CSR) is the percentage of number of claims an insurance company has successfully paid during a specific period to the total number of claims available to settle during that time.

While the 3-year average claim settlement ratio for the entire industry is 98.66%, the highest claim settlement ratio is for Axis Max life insurance which currently stands at 99.62%.

When it comes to term insurance, CSR is one of the most important factors. It gives a first impression of the insurer’s reliability when it comes to claims. But is it the only factor that you should consider? How reliable is this metric when it comes to real life reliability? What are the other factors you should consider?

In this article, we will learn about what a claim settlement ratio is, how it’s calculated, the top 10 term insurance claim settlement ratios, and how to choose the best one.

What is the Claim Settlement Ratio of Life Insurance?

It is a percentage of the total number of claims settled by the insurer in a year to the total number of claims available to settle.

CSR = (Total claims settled / Total claims available to settle) X 100Where-

‘Total Claims Settled’ includes partly and fully settled claims‘Total claims available to settle’ = (Claims carried forward from the previous year) + (New claims reported) - (Claims closed without payment + Claims still pending at year's end)

Top 10 Term Insurance Claim Settlement Ratio

CTA

Top 10 Life Insurance Companies in India by Claim Settlement Ratio

Rank	Company Name	CSR (FY 2022-23)	CSR (FY 2023-24)	CSR (FY 2024-25)	CSR (FY 2022- 2025)
1	Axis Max Life Insurance	99.51%	99.65%	99.70%	99.62%
2	Bandhan Life Insurance (Formerly Aegon Life Insurance)	99.37%	99.66%	99.73%	99.59%
3	HDFC Life Insurance	99.41%	99.54%	99.71%	99.55%
4	PNB MetLife India Insurance	99.09%	99.20%	99.57%	99.29%
5	Canara HSBC Life Insurance	99.10%	99.31%	99.43%	99.28%
6	Edelweiss Tokio Life Insurance	99.20%	99.23%	99.29%	99.24%
7	Bajaj Life Insurance	99.06%	99.26%	99.32%	99.21%
8	Tata AIA Life Insurance	99.03%	99.16%	99.43%	99.21%
9	Pramerica Life Insurance	98.80%	99.19%	99.45%	99.15%
10	Bharti AXA Life Insurance	99.10%	99.01%	99.18%	99.10%

Note: The above figures have been sourced from public declarations from individual insurers under Form L-40.

Why is The Claim Settlement Ratio Important?

Gives You a Clear Picture
When choosing a term insurance provider, one of the most important things you want is confidence that your claim will be settled without hassle. This is where CSR helps. It gives you a quick snapshot of how dependable the insurer has been when it comes to settling claims.
Builds a Strong Reputation
CSR is not just a statistic. It plays a big role in how an insurer is perceived by customers. Since most buyers check CSR while comparing plans, a high CSR can significantly improve an insurer’s image. It signals that the company generally follows through on its promises, which makes it more attractive to new policyholders.
Gives Peace of Mind to Policyholders
For someone buying insurance, a strong CSR instantly builds trust. It reassures them that the insurer has a proven history of paying claims, which can make an important and emotional financial decision feel far more secure.

How To Choose the Best Term Insurance Company in India?

While CSR is a key indicator of an insurer’s reliability, it should not be the only factor you consider. It is equally important to compare the policy’s amount settlement ratio, complaint figures, features, premiums, and overall customer service before making a final decision. Here’s an infographic explaining it in detail:

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Conclusion

Selecting a term insurance company with a high claim settlement ratio is important to ensure your loved ones receive the promised benefits without hassle. While CSR is a key indicator of an insurer’s reliability, it shouldn’t be the only factor you look at. It’s just as important to compare policy Amount settlement ratio, Complaints figures, features, premiums, and customer service before making a final decision.

Always make sure to compare all the plan and insurer options, and read the terms of the plan carefully to make sure there are no surprises in the future.

Note

While Axis Max Life, HDFC Life, Bajaj Life, and Tata AIA life insurance are partners of Ditto, the others companies mentioned are not. Our assessment here is completely independent and based solely on publicly available data and the evaluation framework we use for all insurers. If you want to understand how Ditto reviews insurers across claims, complaints, business strength, and product suitability, you can read our methodology here. The information provided is for general awareness and should not be used for financial or legal decisions. Please refer to the official website for the latest details.

Frequently Asked Questions

Do top 10 CSR insurers always pay every claim?

Not always. Even a high CSR doesn’t guarantee every claim gets paid. Claims can be rejected if terms aren’t met, like missing disclosures, breached terms or lapsed premiums.

How long does it take for a term insurance claim to settle?

Life insurance claims in India are usually settled in 30 days from the date all required documents are received. If the claim needs investigation, insurers can take up to 90 days to complete it, and the payout must be made within 30 days after the investigation ends.

Should I just pick the insurer with the highest CSR?

Not necessarily. While a high CSR is important, consistency over years and other factors like amount settlement ratios, customer service, complaints figures, and premiums also matter.

Do CSR and ASR even matter?

Yes, they matter, but only in context. CSR shows how many claims an insurer settles. ASR shows how much of the claim amount is actually paid. A high CSR alone can be misleading if most claims are small. ASR helps balance that. Use CSR and ASR together, not in isolation. They are indicators, not guarantees.

Does a high CSR mean the insurer is financially strong?

A high CSR suggests the company pays most claims, but it doesn’t alone prove financial strength. You should also check solvency ratios, complaints figures, and amount settlement ratio for a full picture.

Last updated on: 2 Feb, 2026