SBI Life Claim Settlement Ratio Review

SBI Life has a Claim Settlement Ratio of 98.83% for FY 2024-2025, with a CSR of 98.24% (Average for 2022-2025). It consistently maintains a high Claim Settlement Ratio, placing it among India’s most reliable life insurers. However, some competitors, such as Axis Max Life (99.62%) and HDFC Life (99.55%), have performed slightly better on average.

Introduction

The first step in choosing the right term insurance plan is finding a trustworthy insurer, and the claim settlement ratio (CSR) is a key indicator of trustworthiness. In this blog, we’ll cover what CSR means, how it’s calculated, and how SBI Life has performed over the years. Let’s dive in.

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What is the Claim Settlement Ratio?

If you’d like to learn more about the claim settlement ratio in detail, you can check out our comprehensive guide on the same.

SBI Life Term Insurance Past 5 Years Claim Settlement Ratio

Year	Claim Settlement Ratio (%)
2020-2021	93.09%
2021-2022	97.05%
2022-2023	97.26%
2023-2024	98.62%
2024-2025	98.83%
Average (2022-2025)	98.24%

Ditto’s Note: The Claim Settlement Ratio reported by IRDAI is not specific to term insurance alone. It is calculated for the entire life insurance segment, including term insurance, ULIPs, whole life plans, endowment plans, and other life insurance offerings.

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What Does SBI Life’s CSR Mean For You?

SBI Life has significantly improved its performance in the post-COVID era, consistently surpassing the 98% mark. Its improvement from 93.09% (FY20-21) to 97.05% (FY21-22) indicates stronger processes and faster claim settlements.

Although SBI Life isn’t a partner insurer of Ditto, we can say for sure that their CSR over the years is a green flag. However, when choosing an insurer, just the CSR isn’t enough. You also need to consider other metrics, such as the Amount Settlement Ratio (ASR), Complaint Volume, Business Volume, and Solvency Ratio, among others.

If you’d like to learn more about this in detail, we’ve covered it in our blog on SBI Life Insurance Review.

How Does SBI Life’s CSR Compare with Other Top Insurers?

While SBI Life’s improvement is commendable, to truly understand its standing, it’s essential to compare it with other leading life insurers in India.

Below is a ranking of the top 10 insurers based on their three-year average CSR from FY 2022 to 2025.

Rank	Insurance Company	CSR (22-23)	CSR (23-24)	CSR (24-25)	Average (22-25)
1.	Axis Max Life Insurance	99.51%	99.65%	99.70%	99.62%
2.	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.	Tata AIA Life Insurance	99.03%	99.16%	99.43%	99.21%
8.	Bajaj Life Insurance	99.06%	99.26%	99.32%	99.21%
9.	Pramerica Life Insurance	98.80%	99.19%	99.45%	99.15%
10.	Aviva Life Insurance	98.75%	98.98%	99.07%	98.93%

As you can see, while SBI Life’s average CSR of 98.24% is strong, it appears not to make it to the list of Top 10 Life Insurers ranked by their CSR. This is mainly because the competition’s CSR numbers have become extremely tight in recent years, with many insurers consistently crossing the 99% mark.

How to Calculate The Claim Settlement Ratio of SBI Life Term Insurance?

As discussed in the infog at the start of the guide, Ditto examines an insurer’s three-year average CSR score for consistency, as a single good year doesn’t provide the whole picture. An insurer may have had an unusually good or bad year due to exceptional circumstances, such as a pandemic spike or an operational shutdown. Taking the three-year average CSR rules out all anomalies.

Where Can I Find The Claim Settlement Ratio of SBI Life Term Insurance?

You can check SBI Life’s CSR from:

IRDAI’s Handbook on Indian Insurance Statistics
SBI Life’s Public Disclosures
Trusted Comparison Platforms like ours that regularly update the data from IRDAI

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Conclusion

SBI Life’s Claim Settlement Ratio is undeniably strong, but to properly evaluate an insurer’s reliability, it’s essential to look beyond claim numbers and consider other metrics.

At Ditto, we’ve also reviewed SBI Life’s term plan offerings in detail, including Smart Shield Plus and Smart Shield Premier. While SBI Life is a good and reliable insurer, our assessment shows that competitors such as Axis Max Life and HDFC Life outperform it not only in CSR but also across key metrics.

So, to conclude, there’s nothing wrong with choosing SBI Life. However, if you're seeking the absolute best in terms of claim performance, plan design, and overall value, there are better options available today.

Frequently Asked Questions

Are pre-existing diseases covered in the SBI Life Term Insurance?

Pre-existing diseases must be disclosed when applying for a term insurance plan, as failure to do so may lead to claim denials later. After disclosure, the insurer will assess your health and may offer the policy at standard rates or with higher premiums (with a loading charge).

Which life insurance has the best claim-settlement ratio?

Based on recent three-year averages (FY 2022–2025), Axis Max Life currently ranks highest with a CSR of 99.62%, followed closely by Aegon (Bandhan) Life and HDFC Life, all of which consistently exceed the 99% mark.

What is the SBI settlement rate?

For FY 2024-2025, SBI Life has a CSR of 98.83%, and its three-year average CSR (2022-2025) stands at 98.24%. This places it among the stable and trustworthy insurers, among the top 10 with the highest CSRs.

Is SBI Life a government or private company?

SBI Life is a private life insurance company, but it is jointly owned by State Bank of India (SBI) and BNP Paribas Cardif, giving it a strong semi-government backing and high trust value.

Last updated on: 22 Nov, 2025