LIC Claim Settlement Ratio 2024-25: What the Numbers Really Mean for Your Family

Every year IRDAI publishes claim settlement data for all life insurers. In 2024-25, LIC settled 98.76% of individual death claims — the highest among all insurers in India.

What is Claim Settlement Ratio? It is the number of claims settled divided by total claims received in that financial year. A 98.76% ratio means for every 100 death claims LIC received, 98.76 were paid.

Why does LIC top the chart consistently? Three reasons. First, LIC is government-backed. Second, LIC agents have strong incentives to complete proper medical underwriting — this reduces claim rejection later. Third, LIC has 69 years of claims data and processes.

Common reasons for claim rejection at any insurer: Misrepresentation (not disclosing pre-existing health conditions), policy lapse, fraud, or excluded causes such as suicide within the first year.

My advice: Always disclose your full medical history at the time of purchase, even if it increases the premium. A slightly higher premium is far better than a rejected claim. Keep your policy active. Update nominee details. File claims promptly within 90 days.

I have personally assisted dozens of families in Gorakhpur file LIC death claims. Call me at 9415313434 if you need help with a claim.

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