When selecting a term insurance plan, one of the first metrics people often look at is the Claim Settlement Ratio (CSR). This is a widely referenced figure that represents how much of a claim an insurer settles. But what exactly is it?
Simply put, if a life insurance company gets 100 claims and pays out 90 claims, it is a 90% claim settlement ratio. This makes it an important factor when deciding which term insurance company to trust while purchasing your policy. A high CSR is generally seen as a positive indicator of an insurer’s reliability, suggesting they have a strong track record of honoring claims.
However, while CSR plays a significant role in ranking insurers, it should never be the only deciding factor. The Amount Settlement Ratio (ASR), complaint volume, the actual policy’s features, etc., are equally important to finding a good term insurance plan. However, in this article, let’s evaluate what CSR is, look at the top 10 term insurance companies based on CSR in 2025, and why CSR alone doesn’t guarantee the best insurance policy.
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Top 10 Term Insurance Providers Based on Their Claim Settlement Ratio (CSR) in 2025
Here are some of the top term insurance Companies in 2025, ranked by their Claim Settlement Ratios.
| Top 10 Life Insurance Companies | CSR 2021 - 2022 | CSR 2022 - 2023 | CSR 2023 - 2024 | Average of 2021-24 |
|---|---|---|---|---|
| Axis Max Life Insurance Co. Ltd. | 99.34% | 99.51% | 99.65% | 99.50% |
| HDFC Life Insurance Co. Ltd. | 98.66% | 99.41% | 99.54% | 99.20% |
| Bajaj Allianz Life Insurance Co. Ltd. | 99.02% | 99.06% | 99.26% | 99.11% |
| Bharti AXA Life Insurance Co. Ltd. | 99.09% | 99.10% | 99.01% | 99.07% |
| Canara HSBC Life Insurance Co. Ltd. | 98.44% | 99.10% | 99.31% | 98.95% |
| Tata AIA Life Insurance Co. Ltd. | 98.53% | 99.03% | 99.16% | 98.91% |
| Edelweiss Tokio Life Insurance Co. Ltd. | 98.09% | 99.20% | 99.23% | 98.84% |
| Reliance Nippon Life Insurance Co. Ltd. | 98.67% | 98.61% | 98.92% | 98.73% |
| Aviva Life Insurance Co. Ltd. | 98.39% | 98.75% | 98.98% | 98.71% |
| Kotak Mahindra Life Insurance Co. Ltd. | 98.82% | 98.50% | 98.44% | 98.59% |
Note: While these insurers maintain impressive CSRs, relying on this metric alone may not lead you to the most suitable term plan. You should consider other factors as well.
What is Claim Settlement Ratio (CSR) among Term Insurance Providers?
Claim Settlement Ratio or CSR among term insurance providers is one of the primary metrics used to gauge an insurer’s credibility. This metric is supposed to offer a reflection of the provider’s claim settlement track record.
How Do We Calculate the Claim Settlement Ratio (CSR) Among Term Insurance Providers?
To calculate the Claim Settlement Ratio (CSR) of term insurers, we use this formula:
(Total number of claims settled in a year by an insurer / Total number of claims raised to the insurer across the year) * 100
The ideal CSR of a term insurance provider is 97 and above. It is also best to avoid any insurer with a CSR below 90.
While insurers with consistently high CSRs are generally considered reliable, choosing a policy based only on this metric can be misleading. The best approach is to consider CSR as part of a broader evaluation process when selecting a term insurance plan, which we will discuss down below.
What are the Pros and Cons of Considering Claim Settlement Ratio As Credibility Metrics for Term Insurers?
While it’s true that the Claim Settlement Ratio of a term insurance provider is a metric used to measure the credibility of the insurer, there are a few loopholes in the metric. Hence, CSR can’t be the sole consideration when you are choosing a top term insurance plan. Here’s a look at the pros and cons of CSR -
| Pros of Claim Settlement Ratio | Cons of Claim Settlement Ratio |
|---|---|
| Reliability on the insurer - A high CSR (97 and above) reflects that the insurer is good with settling a majority of its claims. This builds a sense of reliability among policyholders towards the insurer. | No reflection on the time required to settle claims - CSR fails to show the time required to settle a claim. This is a crucial consideration when you think of the significant cover amount involved. Additionally, you wouldn’t want a delay in the disbursal of the sum assured during the absence of the family's breadwinner. However, there is another metric called 30-day CSR, which shows how many claims are settled within 30 days. |
| Reflects the insurer’s market reputation - Since CSR is often the first metric that policyholders check before approaching an insurer, a good CSR ensures a great market reputation for the term insurance providers. | Creates potential of manipulation for the insurers - Term insurance providers can easily game the CSR by clearing claims involving lower sum assured while ignoring cases with a higher cover amount. Hence, CSR can’t be the only factor to consider when you are looking for a suitable term insurer. |
What are the Top 10 Term Insurance Companies based on Claim Settlement Ratios?
- Axis Max Life Insurance Co. Ltd: Founded in 2000 as a joint venture between Max Financial Services and Axis Bank, Axis Max Life is a prominent player in the life insurance industry with an annual business volume of ₹9,296 crores (Avg. of 2021-24). Known for its comprehensive range of financial products, including term insurance plans, investment policies like ULIPs and savings plans, and health insurance, Axis Max Life maintains credibility through strong metrics such as Claim Settlement Ratio, Amount Settlement Ratio, and Complaint Volume. Its plans are valued for their comprehensive coverage, affordability, and flexibility with multiple rider options.
- HDFC Life Insurance Co. Ltd: Founded in 2000, HDFC Life is a joint venture between Housing Development Finance Corporation Ltd (HDFC) and global investment firm Abrdn. However, today, it operates independently as part of the HDFC group. HDFC Life ranks among the top 3 life insurance companies in India. Its strong brand value, exceptional operational efficiency, and extensive customization options make HDFC Life a popular choice among policyholders, and we highly recommend it.
- Bajaj Allianz Life Insurance Co. Ltd: Founded in 2001 through a joint venture between Bajaj Finserv and Allianz SE, Bajaj Allianz Life Insurance has expanded significantly over the past two decades, boasting an average annual business volume of ₹10,456 crores over the last three years. Its popularity stems from the credibility of its parent sponsors in the Indian financial market and its extensive portfolio, which includes savings plans, retirement policies, ULIPs, and term insurance plans.
The company has established itself as a reliable life insurer with an excellent Claim Settlement Ratio, strong Amount Settlement Ratio, and minimal complaint volume. Bajaj Allianz's plans are competitively priced and offer a variety of riders for enhanced customization to meet policyholders' specific financial goals. - Bharati AXA Life Insurance Co. Ltd: Founded in 2006 as a joint venture between Bharti Enterprises and AXA Group, Bharti AXA Life Insurance has built a good presence in India's insurance industry. Coming to its average operational revenue over the last three years, the company made around ₹911 crores. However, this figure has been inconsistent over the years. This is a cause for concern. They have a good amount settlement ratio of 97% and a 30-day claim settlement ratio of 98.7%, which is right around the industry benchmark.
- Canara HSBC Life Insurance Co. Ltd: Canara HSBC Life Insurance was established in 2008 as a partnership between Canara Bank, HSBC Insurance Holdings Limited, and Punjab National Bank. They had an excellent 30-day claim settlement ratio of 100% in the years 2022 and 2023, but it dipped slightly to 99.76% in 2024 (which is still not bad). They have an average business of ₹3,138 over the last three years, which is right around the industry median of ₹3,018 crores. Their complaint volume is slightly higher at 23.7 per 10,000 claims settled, compared to the industry median of 15 per 10,000 claims settled. Overall, this is a decent insurer.
- Tata AIA Life Insurance Co. Ltd.: Founded in 2001 as a joint venture between TATA Sons and AIA, TATA AIA Life Insurance Co. Ltd. is one of India's leading life insurers. It offers a wide range of insurance products, including term insurance, ULIPs, retirement plans, and savings policies. Known for its comprehensive and customizable policies with valuable riders, TATA AIA has a credible and well-established reputation in the industry. Unfortunately, the brand’s recent hurdle in terms of its operational efficiency is a concern.
- Edelweiss-Tokio Life Insurance Co. Ltd: Founded in 2011 as a joint venture between Edelweiss Financial Services and Japan’s Tokio Marine Holdings. While Edelweiss-Tokio Life Insurance is a relatively new entrant in the Indian Insurance Industry, it has had a fairly decent growth trajectory since its inception. Today, their annual business volume is a little over ₹540 crores and has been steadily increasing over the last few years.
They have had an average amount settlement ratio of 83.2% over the last three years. This is slightly lower than the industry benchmarks. They have also had a complaint volume of 190.7 per 10,000 claims settled, which is one of the highest. - Reliance-Nippon Life Insurance Co. Ltd: Founded in 2001, Reliance-Nippon Life Insurance is one of India’s earliest insurers. It is a joint venture between Reliance Capital and Nippon Life Insurance, one of Japan’s largest insurers. With a total business of ₹1,230 in 2024, they only recently started gaining a foothold in the market.
While their CSR is among the highest in the industry, over the last few years, they have paid out more in claims than they received in premiums. This is not a good sign for an insurer. - Aviva Life Insurance Co. Ltd: Aviva Life Insurance entered the Indian market in 2002 as a joint venture between Aviva Plc, a UK-based insurance giant, and Dabur Group, one of India's largest FMCG companies. The company’s Claim Settlement Ratio has consistently been above industry standards. However, they are still a very small player in the industry with an average business of just over ₹320 crore, compared to the industry median of ₹3,018 crore. Apart from this, they have an average complaint volume of 149 per 10,000 per claims settled, compared to the industry median of 15.
While these metrics do not seem favorable, they have an amount settlement ratio of 98.8% and a 30-day CSR of 99.59%, which is among the highest in the industry. - Kotak Mahindra Life Insurance Co. Ltd: Founded in 2001, Kotak Life has grown into one of India's largest insurance companies, with an average annual business volume of ₹8,657 crores from 2021 to 2024, ranking as the eighth largest general insurer in the country. Kotak Life offers a diverse range of financial products, including term insurance, retirement plans, savings plans, and ULIPs. Strong Claim Settlement Ratios, low complaint volumes, and excellent Amount Settlement Ratios support its credibility. The company's operational efficiency and client prioritization have consistently been commendable.
How to Choose the Best Term Insurance Company Beyond CSR
While CSR is important, relying on it exclusively may leave you overlooking other crucial elements. Here are some other metrics you should consider for a holistic view:
1. Amount Settlement Ratio (ASR):Unlike CSR, which measures the number of claims settled, the Amount Settlement Ratio (ASR) reflects the total claim amount paid versus the total claim amount received. This ensures you assess the insurer’s efficiency in paying substantial claims — especially for higher-value policies. For example, if you make a claim for ₹100 and the insurer pays out only ₹90, they have a 90% ASR rate.
2. Complaint Volume:Even insurers with high CSRs may have a poor track record when it comes to customer satisfaction. A low complaint volume suggests fewer disputes, smoother claim processing, and better customer support. The complaint volume is measured per 10,000 claims settled. For example, if an insurer has a complaint volume of 10, they have 10 complaints per 10,000 claims settled.
3. Average Annual Business Volume:Insurers handling a large number of policies each year usually reflect stability and trust. A growing revenue and strong presence in the market can provide additional assurance regarding the term insurance company’s financial standing. So, if an insurer’s revenue/ average annual business volume is falling, it may be a cause for concern.
4. Rider Benefits:While term insurance offers pure life coverage, certain riders such as Accidental Death Benefit, Critical Illness Rider, or Waiver of Premium Rider can significantly improve your coverage. Having these riders can make a significant difference in your plan’s overall value, even though you will be paying slightly higher premiums.
5. Policy Features:Some insurers offer features like terminal illness benefit, premium break options, increasing cover benefit, life-stage benefit, or multiple payout options. This can offer flexibility to suit your financial goals and family’s needs. Apart from the insurer, you must also select a plan with a good feature set. Both of these equally matter if you want to choose a good term insurance plan. Here’s a detailed article on how to choose the top term insurers.
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Conclusion
The Claim Settlement Ratio is an important indicator of an insurer’s reliability, but it shouldn’t be your only reference point. A high CSR can reflect an insurer's willingness to settle claims but doesn’t guarantee favorable claim experiences for every policyholder.
Instead, consider CSR as one metric in your evaluation process, which also includes factors like ASR, complaint volume, etc. This is because, at the end of the day, the most suitable term insurance plan is one that offers a good feature set, affordable premiums, and is from a good insurer.
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