IndiaFirst Life Insurance Review: Plans, Benefits, & Claim Experience

Heard of IndiaFirst Life Insurance through your bank? Or maybe that recent tie-up with Northern Arc caught your eye? If you’re wondering whether they’re actually a good choice for your term plan, you’re in the right place.

In this review, we break down everything you need to know before considering IndiaFirst Insurance for your term plan: the good, the not-so-good, and what it means for you.

At Ditto, we’ve helped thousands of people make better insurance decisions every day, so we know what matters when choosing an insurer. Our goal? To provide you with the complete picture in the next 5 minutes, so that you can make an informed purchase with confidence. Let’s dive in.

About IndiaFirst Life Insurance Company

IndiaFirst Life is a bank joint venture backed by Bank of Baroda, Union Bank of India, and Carmel Point Investments. Although it was launched in 2009, over the last two decades, it has managed to expand across over 1,000 cities and towns. While this says a lot about its accessibility, if you examine its life insurance offerings designed to be accessible across India’s banking networks, you’ll find a vast portfolio. 

IndiaFirst Life Insurance offers everything from savings, ULIPs, term, and group plans to purposeful riders such as accidental death benefit and total permanent disability. However, when it comes to choosing a term insurance provider that will be there when you need them the most, you need to consider the complete picture. 

To do that, let’s weigh the pros and cons to see how IndiaFirst Life stacks up for term insurance buyers like you.

Here’s a breakdown of IndiaFirst’s key performance areas:

1) Strengths:

IndiaFirst Life Insurance benefits from strong bancassurance partnerships with central public-sector banks, which provide it with an extensive reach across both urban and rural India.

It also boasts a solid claim settlement ratio, which strengthens customer trust. Moreover, its product portfolio is customer-centric, featuring a diverse mix of term plans, ULIPs, and savings plans that cater to various financial goals.

2) Areas of Concern:

Although IndiaFirst has been growing at a steady pace, when it comes to technology, it’s still catching up with more advanced insurance companies. Users often report issues with the website and mobile app, which can make it difficult to manage policies or access support online. In fact, this is one of the primary reasons they receive complaints.

Other than that, many people are yet to recognize IndiaFirst as a brand as it’s still not as well-known as some of the bigger and more well-established insurance companies. So, while the growth is a good sign, IndaFirst needs to do some work before it can compete at the top level.

Is IndiaFirst Life Insurance a good fit for you?

That depends on what you’re looking for in an insurer. While IndiaFirst does have a substantial physical reach thanks to its PSU bank partnerships and a solid claim track record, it struggles when it comes to digital convenience and user experience.

Here’s what a senior advisor at Ditto has to say about it:

“We typically don’t recommend IndiaFirst Life Insurance to most users, especially those who prioritize digital ease. Their online platform is still a work in progress, as basic tasks like policy servicing and claims tracking can be cumbersome. In a world where insurers are increasingly going digital, IndiaFirst still feels a bit behind the curve.”

That said, IndiaFirst has its strengths. It’s growing steadily, and its product lineup includes a mix of term plans, ULIPs, and savings options tailored to different goals. But to truly compete with top-tier players, it needs to work on its digital offerings and brand presence significantly.

With the strengths and weaknesses covered, let’s look at what the numbers have to say about the life insurance company.

Metrics of IndiaFirst Life Insurance

Here’s a breakdown of IndiaFirst Life Insurance’s performance across key customer-focused metrics, based on our analysis:

Note: We’ve used a 3-year dataset to compare the insurer’s performance against industry average metrics, ensuring consistency and a fair benchmark. 

Heads up: It takes an average person up to 5 hours to read and analyze a policy and 10 hours or more to compare different plans and decide.

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Next, let’s see what the customers have to say about IndiaFirst Life Insurance. 

IndiaFirst Life Insurance Customer Reviews

Let’s begin by evaluating the most critical metric for any life insurer: its Claim Settlement Ratio, which reflects how reliably claims are honored.

Claim Settlement Ratio of IndiaFirst Life Insurance

The claim settlement ratio is a key metric that indicates the percentage of claims filed in a year that were successfully settled. It tells you how likely it is that the insurance company will pay your nominee if something happens to you. It includes all the claims the company settled during the year (even if they were from the previous year). But, it doesn’t count the claims that were rejected or are still being processed.

How can you interpret an insurance company’s CSR?

Now that you know what CSR is and how to interpret it, let’s look at IndiaFirst Life Insurance’s CSR over the last three years:

Claim Settlement Performance: A Closer Look

• Consistent CSR: IndiaFirst Life Insurance has been doing well when it comes to settling claims. Over the past three years, it has had an average CSR of 97.98%, which is a good sign that they’re keeping their promise most of the time. 
• A CSR close to 98% shows that the company has a reliable track record of paying out claims. 
• But CSR isn’t everything, as quality of service, ease of claim filing, and speed of resolution also play a significant role in the actual customer experience. 
• However, it’s important to note here that IndiaFirst isn’t a giant in the market so it might be easier for them to offer more focused service and maintain a high CSR as compared to larger insurers. 

In short, IndiaFirst’s CSR is impressive, but be sure to assess other service parameters to ensure a well-rounded insurance experience. This brings us to another important metric.

Amount Settlement Ratio of IndiaFirst Life Insurance

While the claim settlement ratio (CSR) indicates how many claims an insurer approves, it doesn’t reveal how much money was paid out. This is where the Amount Settlement Ratio becomes relevant. 

In term insurance policies, there is no such thing as a partial claim because the claim is either paid out in full or not at all. So, the ASR is the ratio between the total value of claims settled by an insurer and the total value of claims raised. It indicates how reliably an insurer pays both small and large-value claims. A high ASR means fewer deductions or rejections, especially on high-value policies.

How can you interpret an insurance company’s ASR?

Now that you know what ASR is and how to interpret it, let’s look at IndiaFirst’s ASR to see how it’s performing in comparison to competitors. 

Amount Settlement Ratio: What It Tells You

• Strong and improving ASR: IndiaFirst Life Insurance has averaged an Amount Settlement Ratio of 92.4% over the past three years. 
• A good ASR means that the company is not just settling small policies but also honoring larger claims fairly and without making things complicated. 
• This shows that IndiaFirst has been handling claims honestly and with integrity. 
• However, keep context in mind: While a strong ASR is a positive indicator, it should be assessed alongside other factors, such as claim settlement timelines, customer support quality, and complaint resolution rates, to gain a comprehensive understanding.

Now, let’s take a look at their complaint volume to gain a better understanding of IndiaFirst’s performance in the market.

Complaint Volume of IndiaFirst Life Insurance

When choosing a term insurance provider, most people focus on claim settlement metrics. However, complaint volume is an equally important but often overlooked indicator of an insurer’s overall customer experience. It reflects how well the company supports policyholders throughout the policy lifecycle, from onboarding and service to claims.

A high complaint volume can point to pain points such as delays, poor communication, unexpected charges, or administrative inefficiencies, all of which can become especially problematic when you’re already dealing with the loss of a loved one. 

Here’s a real-world example:

Take Anjali, a 35-year-old marketing professional we recently advised. After her husband’s sudden passing, she filed a claim with IndiaFirst. But what should’ve been a simple, compassionate process turned into a drawn-out ordeal. The claim got stuck in a loop of document mismatch requests. It was eventually resolved, but not without several weeks of back-and-forth and mounting anxiety during an already painful time.

Unfortunately, experiences like Anjali’s aren’t uncommon, especially with insurers that still rely heavily on manual processes and limited digital support.

So, how does IndiaFirst stack up in terms of complaint volume?

IndiaFirst Life reports a high average complaint volume of 60.9 per 10,000 claims, well above the industry median of 17 and top performers like HDFC Life (1.3). While its claim settlement is solid, the increased complaints hint at service friction and delays, documentation issues, or poor support. It may suit existing bank customers, but those prioritizing smooth claim service might prefer insurers with stronger satisfaction scores.

With that perspective in mind, let’s take a closer look at what IndiaFirst’s term insurance plans offer.

Not sure if one of these plans will fit your needs? Our advisors at Ditto can walk you through the fine print, compare it with top alternatives, and help you choose a policy that works when you need it the most. Book a free call now!

IndiaFirst Life Insurance Plans Overview

IndiaFirst Life Insurance offers a versatile range of term plans that cater to a broad spectrum of protection needs, from basic coverage to enhanced plans with waiver benefits, joint life options, and flexible payouts. These plans are structured to provide financial security with long-term value, offering flexibility in both coverage duration and premium payments.

IndiaFirst’s term plans are designed for individuals seeking flexible protection with practical add-ons, including options for whole-life coverage, premium waivers, and joint life protection. These plans strike a balance between affordability and customization, making them suitable for families, professionals, and individuals with evolving financial responsibilities.

While they may not have the most advanced critical illness rider structures in the market, the built-in features, especially in the Guaranteed Protection Plus Plan, provide solid value without requiring complex add-ons.

In short, IndiaFirst’s term plans are ideal for those seeking lifelong or joint protection, with a focus on built-in flexibility and premium waivers. However, service quality should also be factored in before making a commitment. As we’ve seen with IndiaFirst, they need to improve in that regard.

Available Riders

IndiaFirst Life Insurance offers a limited but essential set of rider options that can be added to improve your base term plan coverage:

1) Total Permanent Disability Benefit

Offers financial support in the event of permanent disability due to an accident. This can help cover living costs and medical needs when the insured is unable to work.

2) Accidental Death Benefit

Pays an additional sum assured to the nominee if death occurs due to an accident, offering extra financial protection for your family.

These riders provide an additional layer of protection and are particularly useful for individuals with high-risk occupations or limited health insurance coverage. While IndiaFirst doesn’t offer the widest range of riders in the market, these core options address some of the most financially disruptive life events.

Now that we’ve gone through the metrics of IndiaFirst and also looked at its plan offerings, the next natural step is to see how it compares to other leading insurers in the market.

How Does IndiaFirst Compare to Other Insurers?

To understand how IndiaFirst stacks up, we compared it with three of the leading insurers in the country: HDFC Life, Axis Max Life, and ICICI Prudential, across six performance metrics and here’s what the numbers revealed:

When you look at IndiaFirst on its own, it doesn’t seem to be doing too badly. In fact, you might even feel impressed by the CSR and ASR it boasts. Moreover, with a solvency ratio of 2.1 (well above IRDAI’s recommended minimum of 1.5), you can tell that it’s financially healthy and capable of meeting future liabilities. 

However, when you bring other insurers into the picture, especially HDFC Life and Axis Max Life, the difference becomes quite evident.

• Claim Settlement Ratio and Amount Settlement Ratio
  As Axis Max Life and HDFC Life boast nearly perfect claim settlement ratios, they’re able to instill much more confidence in policyholders as compared to IndiaFirst. Even when you look at the ASR of these insurers, you can tell that while IndiaFirst is close, it’s still a few steps behind the best insurers.
• Complaint Volume
  This is one of the most striking differences. While HDFC Life boasts a low complaint volume of 1.3 complaints per 10,000 claims, IndiaFirst struggles to keep up with 60.9 (which is 47x of HDFC Life’s!)

All of these are crucial factors for those seeking peace of mind, which brings us to the final question: 

Should you consider IndiaFirst Life Insurance?

IndiaFirst can be a decent choice if:

1. You are already banking with Bank of Baroda or Union Bank and want the convenience of buying insurance through a familiar institution.
2. You’re looking for joint-life coverage or want flexibility with premium waivers or return-of-premium options.
3. You value a solid claim settlement record, even if it’s from a minor player in the market. 

However, you should steer clear of IndiaFirst if:

1. You want a smooth digital experience for policy servicing, claims tracking, or customer support, as IndiaFirst’s platform still has a long way to go. 
2. You prefer top-tier service quality, faster turnaround time, or want to avoid paperwork-heavy claim processes.
3. You’re comparing with top insurers like HDFC Life, Axis Max Life, or ICICI Prudential, which offer better performance and better plan structures.

To sum it up, if it’s about basic coverage from a PSU-backed insurer, IndiaFirst can be a solid choice for you. But if you want a frictionless experience with better digital tools and reliable after-sales service, there are better players in the market.

Why Choose Ditto for Term Insurance?

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Conclusion

If we talk about business volume, IndiaFirst Life Insurance's is at ₹2,969 crores, which is notably lower compared to industry leaders such as LIC, SBI Life, or HDFC Life, which report volumes exceeding ₹10,000 crores. This reflects a smaller market share and potentially limited product diversification. While it excels in claim settlement, its relatively smaller business scale suggests a narrower reach and less competitive presence compared to the top players. As a result, while IndiaFirst offers strong claims reliability, its limited size could impact its long-term growth and customer experience in the broader market.

Key Takeaways:

1) High Claim Reliability: 
With a 3-year average Claim Settlement Ratio of 97.98% and an ASR of 92.4%, IndiaFirst offers strong assurance in claim handling, even for large-value policies.

2) Moderate Customer Experience: 
A complaint volume averaging 60.9 per 10,000 claims, combined with limited digital capabilities, highlights service friction compared to industry leaders.

3) Bank-Driven Accessibility: 
Backed by central public-sector banks, IndiaFirst offers affordable and flexible plans with decent rider options, making it a convenient choice for those seeking convenience through existing bank relationships.

If you need help choosing the perfect insurer or term insurance plan to suit your needs, book a free consultation call with us. Our IRDAI-certified advisors will be happy to assist you.