LIC Claim Settlement Ratio At 97.08% In FY25: How It Compares with Peers?

The Insurance Regulatory and Development Authority of India (IRDAI) has released the latest claim settlement data for life insurers for FY2024-25. 

The overall life insurance industry, including both private insurers and Life Insurance Corporation of India (LIC), achieved a claim settlement ratio of 97.10% within 30 days. 

This indicates that a vast majority of individual death claims were processed promptly, reflecting improved operational efficiency and customer service standards.

LIC Claim Settlement Ratio

LIC, India’s largest life insurer, reported a claim settlement ratio of 97.08% in terms of the number of policies settled within 30 days. Out of 8,48,145 claims paid during FY25, 8,23,382 were settled within this timeframe. 

While slightly below the industry average, LIC’s performance remains strong given its significantly higher claim volumes compared to private insurers.

Private Insurers Performance

Private life insurers marginally outperformed LIC, with an average claim settlement ratio of around 97.30%. 

Companies such as Shriram Life Insurance, Aditya Birla Sun Life, HDFC Life, and PNB MetLife reported near-perfect settlement rates, with some even achieving 100% settlement within 30 days. This reflects increasing competition and a focus on faster claims processing in the private sector.

Claim Settlement by Benefit Amount

When measured in terms of benefit amount, the settlement ratios show a different trend. LIC settled 79.70% of total claim amounts within 30 days, significantly lower than its policy-based ratio. 

Some private insurers like HDFC Life and Aditya Birla Sun Life reported close to 100% settlement in terms of benefit amount, while others showed varying efficiency levels. This gap indicates that higher-value claims may take longer to process.

Importance Of Claim Settlement Ratio

The claim settlement ratio is a crucial metric for policyholders as it reflects an insurer’s reliability and efficiency in honouring claims. Faster settlements, especially within 30 days, are considered a key indicator of strong customer service and financial stability.

LIC Share Price Today

On April 23, 2026, LIC share price opened at ₹817.95, touching the day’s low at ₹815.40, as of 12:02 PM on the NSE.

Also Read: LIC, Bajaj Allianz, SBI Life Report Higher Premium Collections as Industry Crosses ₹4 Trillion in FY26!

Conclusion

The FY25 data highlights a robust life insurance ecosystem in India, with both LIC and private players maintaining high claim settlement ratios. While LIC continues to lead in scale, private insurers are setting benchmarks in speed and efficiency. For policyholders, evaluating both settlement ratios and claim processing timelines is essential when choosing an insurer.

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