LIC Claim Settlement Ratio History
LIC is a leading insurance company in Indian markets that aims to satisfy customers’ needs from various backgrounds. The company is well known for its life insurance and money-back policies that provide ways to get protection from financial constraints. It offers a wide range of products for all income groups, thereby showing ways to lead a trouble-free life. Apart from that, the company has high claim settlement ratios when compared to other companies. While buying LIC policy, customers should consider various things, including claim settlement ratio (CSR) that will help gain more advantages.
A claim settlement ratio is the percentage of claims settled by an insurance company against the total number of claims in a financial year. LIC has a good record of CSR, and that’s why many people prefer to buy the plans. The company maintains its reputation due to excellent customer services and a wide range of offices. Customers should know the history of the LIC claim settlement ratio before buying a plan. This, in turn, gives ways to invest money based on the choices to manage difficult situations with ease.
Analysis of LIC claim settlement ratio (2017-18)
LIC had a good CSR in the year 2017-18 and settled many claims. The percentage of success rates was 98.04% which is the highest when compared to any company. It settled nearly 7,24,596 policies out of the claims received under 7,39,082 policies. Moreover, the rejection percentage is 0.67% and has 0.08 % pending claims. 1.21% of policyholders unclaimed their policies in the year 2017-18. LIC settled 45.17% claims in less than 3 months and 44.64% claims from 3 months to 6 months. It settled 3.51% claims in 6 months to less than 12 months.
History of LIC claim settlement ratio (2018-19)
LIC recorded a 97.79% claim settlement ratio in the year 2018-19 and settled nearly 8.43 lakh claims on individual policies. In addition, the company canceled nearly 3,697 claims and rejected around 6,372 policies. However, the reputation has come down to nearly 0.43% in the year 2018-19.
What are the advantages of buying LIC plans?
- Lower premiums: The premium prices of LIC plans are very low when compared to private insurance policies that will help save more money. However, policy buyers should compare the premium plans in detail before investing money.
- Helps build cash value: Buying a LIC plan allows policyholders to get coverage for life as well as bonuses that will help accumulate cash value. It even allows a policyholder to withdraw the interest over the premiums that have been paid for a more extended period. Not only that, LIC offers pension plans for retirees to ensure financial security.
- Benefits for family members: LIC provides exclusive plans for family members allowing nominees to get a lump sum benefit during unforeseen events. At the same time, the plan needs proper research before investing money. This will help a lot to ensure high protection from unwanted problems to a large extent.
- Tax benefits: Buying LIC plans allows policy buyers to claim tax deductions under the income tax act. On the other hand, it is wise to know them before buying a plan which will help accomplish goals effectively.
- Loan facilities: With LIC insurance plans, policyholders can avail of loan facilities after the completion of 3 years. Anyone who wants to get funds during emergencies can apply for them, which gives ways to lead a trouble-free life.
- Easy claim process: LIC makes the claim process a simple one when compared to other plans. As a result, policyholders can claim amounts in easy steps that will save more time. Furthermore, they can focus more on the objectives while buying a policy.
- High claim settlement ratios: The LIC settlement ratio is high, allowing policyholders to overcome unwanted problems significantly. Apart from that, it gives ways to reduce the financial burden when it comes to emergencies.
7 Things to consider while buying a LIC insurance plan
- Age: Age is the most crucial factor to consider before buying a plan because older people have to pay more premiums when they want to ensure high coverage.
- Occupation: While purchasing a plan, people should evaluate their professional background because it determines the premium prices.
- Income: Income is another thing to keep in mind while purchasing a LIC plan. This will help a lot to pay the premiums on time which gives ways to overcome penalties and other problems.
- Claim Process: Policy buyers should evaluate the history of the LIC claim ratio in detail before buying a plan that will help make the right decision. Not only that, they can select a policy that caters to their requirements.
- Rejections: Knowing the LIC death claim rejected data from different sources is essential before buying an insurance plan. This, in turn, gives ways to choose a plan with more attention to reducing complications during a claim process.
- Evaluating the plans: Policy buyers should evaluate the plans offered by LIC, which gives ways to protect life from untimely death and other problems.
- Reviews: Although LIC offers a variety of plans for customers in the markets, not all of them are the same. Therefore, policy buyers should read reviews of LIC plans and products before investing money.
How to buy new LIC plans?
Customers who want to buy new LIC plans can visit a nearby branch to know more about the details of the plans. It is possible to purchase a policy online at the best prices. A policy buyer can visit the official website of LIC and complete the registration process in the customer portal form. On the other hand, it is wise to read the terms and conditions before buying a plan online. Policy buyers should give more importance to the LIC term insurance claim settlement ratio before choosing a plan. Purchasing the best LIC insurance policy allows people to plan their future life accordingly. It even provides ways to balance financial risks during unforeseen events that will help get peace of mind.