Best Life Insurance Provider In India - Based On Claim Settlement Ratio

Deciding which company to choose for Life Insurance has always been tough and with so many new entrants customers are spoiled for choice. It’s always a dilemma which factors to look at while choosing your life insurance provider – cost, convenience, past performance, claim settlement rate, etc.I think the most important factor should be tension free claim settlement for your loved ones once you are not there. And in that case the recent Annual Report (2008-09) from IRDA shows LIC (Life Insurance Corporation) tops the chart. It has claim settlement rate of 95%, which is 5% higher than its nearest competitor Max New York Life with 90% settlement rate. But if you have a look at the premium rates for term plans here LIC generally has the highest rate.
So in all you can think of LIC as a costly but still the one with most hassle free settlement for your insurance.
The other thing I could see is Companies with higher number of settled claims have a bit lower claim settlement rate in terms of amount which means that low value claims are settled more easily than higher value claims which makes sense for companies. So the next question is should you have multiple small policies rather than one large value life insurance policy? Think about this – it would cost you more but probably have higher chances of getting claim paid!