Lok Sabha Question No. 16 (UNSTARRED), answered on 2018-02-02
Subject: Settlement of Insurance Claims
Ministry: FINANCE
Asked by: VIJAYSINH MOHITE PATIL, P.R. SUNDARAM, DHANANJAY BHIMRAO MAHADIK, JAYAKUMAR JAYAVARDHAN, RAJEEV SHANKARRAO SATAV, HEENA VIJAYKUMAR GAVIT

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 16

TO BE ANSWERED ON 2 nd  February 2018/ Magha 13, 1939 (Saka)

## Settlement of Insurance Claims

16. SHRI MOHITE PATIL

VIJAYSINH SHANKARRAO:

SHRI P. R. SUNDARAM:

SHRI DHANANJAY MAHADIK:

DR. J. JAYAVARDHAN:

SHRI SATAV RAJEEV:

DR. HEENA VIJAYKUMAR GAVIT:

Will the Minister of FINANCE be pleased to state:

- (a) the  number  of  complaints  received  by  private  and  public  sector  insurance companies for settlement of claims during the last three years;

- (b) the details of the premium collected and claims settled by the public sectors as well as private sector insurance companies during the last three years;

- (c) whether Public Sector Insurance companies are ahead of private life insurance companies in paying out claims;

- (d) if  so,  the  ratio  of  settlement  of  claim  of  public  and  private  sector  insurance companies for the financial year 2017;

- (e) whether there is any monitoring mechanism for timely settlement of claims and if so, the details thereof; and

- (f) the  other  steps  taken  by  the  Government  to  protect  the  interest  of  public  for getting speedy settlement of their insurance claims?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI SHIV PRATAP SHUKLA)

- (a) The number of complaints received by private and public sector insurance companies in Life  Insurance  Business  and  General  Insurance  Business  during  last  3  years  are  given  in Annexure-1.

- (b) The details of the premium collected and claims settled by the public sectors as well as private sector insurance companies during the last three years is given in Annexure 2 .

- (c ) and (d) Public Sector Life Insurance Company- Life Insurance Corporation of India (LIC) is ahead of private life insurance companies in the settlement of claims. The percentage of death claims paid during 2016-17 is as under:

Percentage of claims settled

| Life Insurance Corporation of India               | 98.31%   |
|---------------------------------------------------|----------|
| Insurers- Private Sector Life Insurance Companies | 93.72%   |

(e)  Insurance  Regulatory  and  Development  Authority  of  India  (IRDAI)  monitors  the  claims payment position of the insurance companies by collecting periodical data pertaining to claims. Apart from this, IRDAI periodically carries out onsite inspection of insurance companies.

(f)   IRDAI has constituted an Integrated Grievance Management System (IGMS) for real time monitoring of  all  policy  related  grievances  from  consumers.  Provisions  have  also  been  made under IRDAI (Protection of Policyholder's Interest) Regulations, 2017 for speedy settlement of insurance claims of policyholders.

**********

## Annexure -I referred to in reply to part (a) of Lok Sabha Un-Starred Question No. 16 for 02.02.2018

The number of complaints are given as under:

| Type                            |   2014-15 |   2015-16 |   2016-17 |
|---------------------------------|-----------|-----------|-----------|
| Life Insurer- Public Sector     |     16769 |     13588 |      9222 |
| Life Insurer- Private Sector    |     14307 |     11161 |      8161 |
| General Insurer- Public Sector  |      9716 |     10722 |     12101 |
| General Insurer- Private Sector |     16751 |     15758 |     15536 |

## Annexure -II referred to in reply to part (b) of Lok Sabha Un-Starred Question No. 16 for 02.02.2018

The  data  on  premiums  and  claims  settlement  in  respect  to  Life  Insurance  and  General  Insurance (including Health Insurance) business for last three years.

## I. Life Insurance

| Type                         | Total Premium of Life Insurers (Rs. In Crore)   | Total Premium of Life Insurers (Rs. In Crore)   | Total Premium of Life Insurers (Rs. In Crore)   |
|------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|
|                              | 2014-15                                         | 2015-16                                         | 2016-17                                         |
| Life Insurer- Private Sector | 88434.35                                        | 100499.03                                       | 117989.25                                       |
| LIC of India                 | 239667.65                                       | 266444.21                                       | 300487.36                                       |
| Total                        | 328102.01                                       | 366943.23                                       | 418476.61                                       |

## Data of Death Claims Settled

| Type                         |            |                   |        |                   | 2015-16    | 2015-16           | 2015-16   | 2015-16           | 2016-17    | 2016-17           | 2016-17   | 2016-17           |
|------------------------------|------------|-------------------|--------|-------------------|------------|-------------------|-----------|-------------------|------------|-------------------|-----------|-------------------|
|                              | Individual | Individual        | Group  | Group             | Individual | Individual        | Group     | Group             | Individual | Individual        | Group     | Group             |
|                              | No.        | Amount (Rs.in Cr) | No.    | Amount (Rs.in Cr) | No.        | Amount (Rs.in Cr) | No.       | Amount (Rs.in Cr) | No.        | Amount (Rs.in Cr) | No.       | Amount (Rs.in Cr) |
| Life Insurer- Private Sector | 109007     | 2733.49           | 176014 | 1483.55           | 104922     | 2946.49           | 281893    | 2303.00           | 103194     | 3265.09           | 425155    | 3239.56           |
| LIC of India                 | 742243     | 9055.18           | 272811 | 2037.27           | 749249     | 9690.17           | 246745    | 2494.03           | 756399     | 10585.53          | 290148    | 2995.61           |
| Total                        | 851250     | 11788.67          | 448825 | 3520.82           | 854171     | 12636.66          | 528638    | 4797.03           | 859593     | 13850.62          | 715303    | 6235.17           |

## II. General Insurance (including Health Insurance)

| Type                              | Gross Direct Premium (Rs. In crore)   | Gross Direct Premium (Rs. In crore)   | Gross Direct Premium (Rs. In crore)   |
|-----------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|
|                                   | 2014-15                               | 2015-16                               | 2016-17                               |
| General Insurers- Private Sector  | 35090                                 | 39693                                 | 53805                                 |
| General Insurers- Public Sector   | 42549                                 | 47691                                 | 60218                                 |
| Standalone Health Insurers        | 2943                                  | 4154                                  | 5858                                  |
| Specialised Insurers (ECGC & AIC) | 4102                                  | 4842                                  | 8247                                  |
| Total                             | 84684                                 | 96380                                 | 128128                                |

| Insurer                           | Claims Settled (Rs. In crore)   | Claims Settled (Rs. In crore)   | Claims Settled (Rs. In crore)   |
|-----------------------------------|---------------------------------|---------------------------------|---------------------------------|
|                                   | 2014-15                         | 2015-16                         | 2016-17                         |
| General Insurers- Private Sector  | 19509                           | 24550                           | 26337                           |
| General Insurers- Public Sector   | 31246                           | 36372                           | 45749                           |
| Standalone Health Insurers        | 1,398                           | 1,966                           | 2,708                           |
| Specialised Insurers (ECGC & AIC) | 5103                            | 4042                            | 3622                            |
| Total                             | 57257                           | 66929                           | 78415                           |