TATA AIA Maha Raksha Supreme Review

TATA AIA Maha Raksha Supreme Select is a term insurance plan designed to provide a financial safety net for your family in case something happens to you. In simple terms, it ensures your dependents receive a lump sum (or structured payout) so they can manage expenses, liabilities, and long-term goals even in your absence.

In this TATA AIA Maha Raksha Supreme Select review, we’ll break down the features, variants, riders, pricing, and overall verdict of the plan to help you decide if it’s the right fit. We’re focusing on TATA AIA Maha Raksha Supreme Select, since its predecessor, TATA AIA Maha Raksha Supreme, is no longer available for purchase.

In the table above, CSR stands for claim settlement ratio, ASR for amount settlement ratio, and GWP for gross written premium. We use 3-year averages to avoid one unusually good/bad year skewing the picture. 

Key Insights on TATA AIA’s Operational Metrics

• At 99.21% CSR, TATA AIA Life Insurance stands above the industry average, indicating a highly reliable track record of settling claims. If you want more information on the TATA AIA Claim Settlement Ratio, refer to the linked guide.
• At 95.1% ASR, it is slightly above the industry mean, suggesting fair treatment of large and small value claims.
• With just 3 complaints per 10,000 claims, it outperforms the industry median, reflecting strong customer service and a smoother claims experience.
• The ₹9,253 crore GWP highlights TATA AIA as a large, well-established insurer, far exceeding the industry median in scale and market presence.
• The 1.82x solvency ratio, while healthy and above the regulatory requirement of 1.5x, is slightly below the industry median, indicating relatively tighter capital buffers compared to peers.

Key Features of TATA AIA Maha Raksha Supreme (Select)

01

FlexiPay Benefit

The FlexiPay feature allows you to defer your premium payments for up to 12 months while keeping your policy active. For instance, if you lose your job or face a temporary cash crunch, you can skip premiums for a year and still remain covered. At the end of the deferment period, you’ll need to clear the pending premiums to continue the policy.

02

Life Stage Benefit

The life stage benefit feature lets you increase your coverage at key life milestones without fresh medical underwriting. You can boost your sum assured by 50% on marriage, 25% on the birth/adoption of your first and second child each, and up to 100% based on your home loan amount, provided you exercise the option within 180 days of the event.

03

Terminal Illness Benefit

If you are diagnosed with a terminal illness where a doctor certifies in writing that the policyholder’s life expectancy is less than 6 months, the insurer pays 50% of your sum assured upfront. Additionally, all future premiums are waived, while the remaining cover continues for your family.

04

Flexible Death Benefit Payout

The plan allows you to customize how your family receives the claim amount. You can choose a lump sum payout, regular income for up to 30 years, or a combination of both, depending on your financial planning needs.

05

Instant Claim Payout (₹3 Lakh)

In case of death, the insurer provides an instant payout on claim intimation of ₹3 lakh within 1 working day of claim intimation (after the first 3 policy years), offering immediate financial support before the full claim is settled.

06

Premium Holiday for Pregnancy

Women policyholders can opt for a 12-month premium break during pregnancy, during which the policy continues to remain active with full coverage benefits.

Plan Options: Which Variant Should You Choose?

Although the TATA AIA Maha Raksha Supreme Select brochure lists 4 variants, only 2 are available for purchase. The Joint Life Secure and Joint Life Secure Plus variants are not live, so we will not be discussing them. Instead, we’ll focus on the 2 live variants.

• Life Secure is a pure term insurance option. It offers a straightforward death benefit; your nominee receives the sum assured if something happens to you during the policy term. Since there’s no maturity benefit, premiums remain relatively lower, making it a cost-efficient choice for protection.
• Life Secure Plus (ROP) adds a return-of-premium feature. If you survive the policy term, the insurer returns 100% of the base premiums paid (excluding taxes, rider premiums, and discounts). However, this comes at a significantly higher cost (often 60-100% higher), and the returned amount loses real value over time due to inflation.

At Ditto, we generally recommend sticking to pure protection variants like Life Secure. Insurance is meant to protect your family, not generate returns, and the extra premium paid for ROP can often be better invested elsewhere, like mutual funds, for higher long-term gains.

Note: All the information in the article above has been sourced from IRDAI reports, insurer websites, policy brochures, and publicly available data. Although the brochure outlines multiple features, availability can vary by variant, channel, or current insurer rules. Please confirm the latest details with TATA AIA or your agent before proceeding.

Riders and Add-ons: Enhancing Your Coverage

Critical Illness Rider (Criticare Plus)

This is a non-accelerated critical illness rider covering 40 illnesses till the age of 75, which means you receive a payout (maximum up to  ₹1 crore) on diagnosis without reducing your base life cover. It comes with a 90-day waiting period and a 30-day survival period, and can be renewed every 5 years (with revised premiums).

Accidental Total & Permanent Disability (ATPD) Rider

The ATPD rider provides a lump sum and/or income payout if you become permanently disabled due to an accident, provided the disability occurs within 180 days. The payout can even double in specific scenarios like public transport accidents or elevator mishaps.

Waiver of Premium (WOP) Rider

The WOP rider ensures that all future premiums are waived if you are diagnosed with a critical illness or suffer accidental disability, while the policy continues uninterrupted. Note that WOP on CI is typically offered in 5-year renewable blocks, subject to underwriting.

Accidental Death Benefit (ADB) Rider

The ADB rider offers an additional payout over and above the base sum assured in case of death due to an accident. Similar to ATPD, the payout may be higher under specific conditions, like commercial air travel or public transport incidents.

Hospicare Rider

Provides a fixed daily cash benefit during hospitalization, such as 0.5% of the rider sum assured per day (up to 30 days) and additional ICU/recuperation benefits up to 1.5%. It requires a minimum 24-hour hospitalization and has waiting periods for certain conditions.

Vitality Wellness Add-on

This optional add-on focuses on preventive health and lifestyle management, offering services like teleconsultations, health check discounts, and wellness tracking tools to encourage healthier habits.

For this example, we’ve taken healthy profiles of non-smoking, salaried individuals, covered for a sum assured of ₹2 crores till the age of 70. The premiums are indicative in nature and can vary based on your age, health condition, lifestyle choices, and underwriting decisions. Moreover, the figures exclude first-year discounts (2nd year onwards premiums).

Key Observation on TATA AIA’s Premiums:

TATA AIA’s Maha Raksha Supreme Select is competitively priced, slightly cheaper than Axis Max Life and noticeably lower than HDFC Life across profiles. This makes it a strong value pick if you’re okay with its higher eligibility criteria.

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Ditto’s Take

TATA AIA Maha Raksha Supreme Select is a feature-rich and well-structured term insurance plan, backed by a strong brand and solid insurer metrics. With benefits like flexible payouts, life stage upgrades, and a strong rider ecosystem, it can appeal to individuals looking for a more customizable term plan.

That said, your experience doesn’t end at buying the policy; it continues through servicing and claims. While TATA AIA performs well on paper, there can be instances where operational processes (like documentation and onboarding) may not feel as seamless as those of some other insurers.

So while TATA AIA Maha Raksha Supreme Select is a decent option, it’s best viewed as one among several choices rather than a default pick. Comparing it with other top term plans before making a decision would be the smarter move. For those who don’t meet the income criteria or need a lower cover (below ₹2 crore) but still prefer the TATA brand, you can consider the Sampoorna Raksha Promise plan.