Lok Sabha Question No. 3365 (UNSTARRED), answered on 2016-08-05
Subject: Insurance Premium
Ministry: FINANCE
Asked by: RAMESH POKHRIYAL NISHANK

## Government of India Ministry of Finance Department of Financial Services Lok Sabha Unstarred Question No. † 3365

To be answered on Friday, August 5, 2016/Shravana 14, 1938 (Saka)

## Insurance Premium

## † 3365. DR. RAMESH POKHRIYAL "NISHANK":

Will the Minister of FINANCE

be pleased to state:

- (a) the  details  and  percentage  of  insurance  premium  in  India  is  low  to  the  Gross  Domestic Product (GDP) and if so, the details thereof;
- (b) the comparative percentage of the disputes in respect of claims in the insurance sector in the country vis-a-vis foreign institution companies; and
- (c) the  steps  taken  by  the  department  to  accelerate  settlement  of  the  disputed  claims  in  this regard?

## Answer Minister of State in the Ministry of Finance

(Shri Santosh Kumar Gangwar)

(a)  to  (c)  The  details  and  percentage  of  Insurance  premium  in  India  with  reference  to  the Gross Domestic Product (GDP) commonly referred as Insurance Penetration for the last two years are as under:

| Particulars                    |   2014 (%) |   2015 (%) |
|--------------------------------|------------|------------|
| Life Insurance Penetration     |        2.6 |       2.72 |
| Non-Life Insurance Penetration |        0.7 |       0.72 |
| Total Insurance Penetration    |        3.3 |       3.44 |

The  comparative  percentage  of  the  disputes  in  respect  of  claims  in  the  insurance  sector  is given in Annexures I & II.

IRDA  (Protection  of  Policyholders'  Interest)  Regulations  2002  prescribes  procedures  for settlement of claims in respect of life and general insurance policies.

As  per  IRDAI  Circular  dated  11-2-2009,  all  Insurers  to  inform  through  policy  documents certain minimum information on Grievance Redressal Procedure of insurance companies and also information relating to the ombudsman.

IRDAI  analyses  the  claims  data  of  Life  Insurers  every  quarter  and  abnormal  variations/ deviations from the regulatory norms noticed and discrepancies, if any are taken up with the insurers. The  Authority  also conducts  focused  onsite inspection in case  any  grave irregularities  are  noticed  in  the  claim  settlement  by  the  insurer  or  during  the  course  of redressing the grievances of the policyholders related to the claim settlement and accordingly, regulatory and corrective measures are initiated.

IRDAI  has  put  in  place  an  online  grievance  portal  www.igms.irda.gov.in  and  a  toll  free grievance call centre (155255) to address the grievances of policyholders.

| Dispute Claim Complaints Last 3 Years - Life Insurer   | Dispute Claim Complaints Last 3 Years - Life Insurer   | Dispute Claim Complaints Last 3 Years - Life Insurer   | Dispute Claim Complaints Last 3 Years - Life Insurer   | Dispute Claim Complaints Last 3 Years - Life Insurer   |
|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|
| S. No                                                  | Insurer Name                                           | %of Claims Complaints                                  | %of Claims Complaints                                  | %of Claims Complaints                                  |
|                                                        |                                                        | 2013-14                                                | 2014-15                                                | 2015-16                                                |
| Indian Insurers                                        | Indian Insurers                                        | Indian Insurers                                        | Indian Insurers                                        | Indian Insurers                                        |
| 1                                                      | Exide Life Insurance Co. Ltd.                          | 22.42%                                                 | 20.05%                                                 | 11.39%                                                 |
| 2                                                      | Life Insurance Corporation of India                    | 21.61%                                                 | 20.72%                                                 | 20.99%                                                 |
| 3                                                      | Sahara Life Insurance Co. Ltd.                         | 62.50%                                                 | 59.26%                                                 | 74.29%                                                 |
| 4                                                      | Shri Ram Life Insurance Co. Ltd.                       | 9.41%                                                  | 13.33%                                                 | 16.99%                                                 |
| TOTAL(a)                                               | TOTAL(a)                                               | 21.64%                                                 | 20.64%                                                 | 19.79%                                                 |
| Insurers with Foreign JV partners                      | Insurers with Foreign JV partners                      | Insurers with Foreign JV partners                      | Insurers with Foreign JV partners                      | Insurers with Foreign JV partners                      |
| 1                                                      | Aegon Religare Life Insurance Co. Ltd.                 | 4.85%                                                  | 3.39%                                                  | 4.39%                                                  |
| 2                                                      | Aviva Life Insurance Co. Ltd.                          | 5.69%                                                  | 4.47%                                                  | 4.05%                                                  |
| 3                                                      | Bajaj Allianz Life Insurance Co. Ltd.                  | 8.54%                                                  | 4.95%                                                  | 6.46%                                                  |
| 4                                                      | Bharti Axa Life Insurance Co. Ltd.                     | 2.84%                                                  | 3.95%                                                  | 2.71%                                                  |
| 5                                                      | Birla Sun Life Life Insurance Co. Ltd.                 | 6.01%                                                  | 5.70%                                                  | 7.73%                                                  |
| 6                                                      | Canara HSBC Life Insurance Co. Ltd.                    | 3.61%                                                  | 7.17%                                                  | 13.43%                                                 |
| 7                                                      | DHFL Pramerica Life Insurance Co. Ltd.                 | 7.33%                                                  | 6.84%                                                  | 3.50%                                                  |
| 8                                                      | Edleweiss Tokio Life Insurance Co. Ltd.                | 0.00%                                                  | 0.58%                                                  | 0.48%                                                  |
| 9                                                      | Future Generali of India Life Insurance Co. Ltd.       | 0.59%                                                  | 2.26%                                                  | 3.16%                                                  |
| 10                                                     | HDFC Standard Life Insurance Co. Ltd.                  | 6.08%                                                  | 7.02%                                                  | 5.74%                                                  |
| 11                                                     | ICICI Prudential Life Insurance Co. Ltd.               | 2.25%                                                  | 3.45%                                                  | 4.77%                                                  |
| 12                                                     | IDBI Federal Life Insurance Co. Ltd.                   | 3.24%                                                  | 5.45%                                                  | 5.86%                                                  |
| 13                                                     | India First Life Insurance Co. Ltd.                    | 12.73%                                                 | 11.50%                                                 | 12.97%                                                 |
| 14                                                     | Kotak Mahindra Life Insurance Co. Ltd.                 | 2.89%                                                  | 4.20%                                                  | 4.50%                                                  |
| 15                                                     | Max Life Life Insurance Co. Ltd.                       | 5.89%                                                  | 6.98%                                                  | 7.31%                                                  |
| 16                                                     | PNB MetLife India Insurance Co. Ltd.                   | 7.84%                                                  | 15.41%                                                 | 11.92%                                                 |
| 17                                                     | Reliance Life Insurance Co. Ltd.                       | 3.92%                                                  | 6.39%                                                  | 11.24%                                                 |
| 18                                                     | SBI Life Insurance Co. Ltd.                            | 9.41%                                                  | 9.81%                                                  | 11.88%                                                 |
| 19                                                     | Star Union Daichi Life Insurance Co. Ltd.              | 12.74%                                                 | 22.47%                                                 | 16.99%                                                 |
| 20                                                     | Tata AIA Life Insurance Co. Ltd.                       | 9.45%                                                  | 12.17%                                                 | 16.40%                                                 |
| TOTAL(b)                                               | TOTAL(b)                                               | 5.93%                                                  | 6.56%                                                  | 7.69%                                                  |
| GRAND TOTAL(a+b)                                       | GRAND TOTAL(a+b)                                       | 9.79%                                                  | 11.14%                                                 | 12.09%                                                 |

Annexure II

| Dispute Claim Complaints Last 3 Years - Non Life Insurer   | Dispute Claim Complaints Last 3 Years - Non Life Insurer   | Dispute Claim Complaints Last 3 Years - Non Life Insurer   | Dispute Claim Complaints Last 3 Years - Non Life Insurer   | Dispute Claim Complaints Last 3 Years - Non Life Insurer   |
|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|
| S. No                                                      | Insurer Name                                               | %of Claims Complaints                                      | %of Claims Complaints                                      | %of Claims Complaints                                      |
|                                                            |                                                            | 2013-14                                                    | 2014-15                                                    | 2015-16                                                    |
| Indian Insurers                                            | Indian Insurers                                            | Indian Insurers                                            | Indian Insurers                                            | Indian Insurers                                            |
| 1                                                          | ECGC Ltd                                                   | 95.37%                                                     | 82.61%                                                     | 40.00%                                                     |
| 2                                                          | L&T General Insurance Co. Ltd.                             | 22.30%                                                     | 22.97%                                                     | 29.85%                                                     |
| 3                                                          | National Insurance co. Ltd.                                | 53.94%                                                     | 53.78%                                                     | 58.30%                                                     |
| 4                                                          | Reliance General Insurance Co. Ltd.                        | 52.16%                                                     | 32.75%                                                     | 51.13%                                                     |
| 5                                                          | Religare Health Insurance Co. Ltd.                         | 46.20%                                                     | 49.41%                                                     | 59.93%                                                     |
| 6                                                          | Shriram General Insurance Co. Ltd.                         | 89.52%                                                     | 75.56%                                                     | 70.83%                                                     |
| 7                                                          | The New India Assurance Co. Ltd.                           | 80.28%                                                     | 78.21%                                                     | 67.21%                                                     |
| 8                                                          | The Oriental Insurance Co. Ltd.                            | 62.21%                                                     | 63.65%                                                     | 59.26%                                                     |
| 9                                                          | United India Insurance Co. Ltd.                            | 61.85%                                                     | 56.88%                                                     | 57.56%                                                     |
| TOTAL(a) 62.03% 57.51% 59.10% with Foreign JV partners     | TOTAL(a) 62.03% 57.51% 59.10% with Foreign JV partners     | TOTAL(a) 62.03% 57.51% 59.10% with Foreign JV partners     | TOTAL(a) 62.03% 57.51% 59.10% with Foreign JV partners     | TOTAL(a) 62.03% 57.51% 59.10% with Foreign JV partners     |
| 1                                                          | Apollo MUNICH Health Insurance Co. Ltd.                    | 41.00%                                                     | 55.90%                                                     | 48.98%                                                     |
| 2                                                          | Bajaj Allianz General Insurance Co. Ltd                    | 13.32%                                                     | 14.34%                                                     | 24.77%                                                     |
| 3                                                          | Bharati Axa General Insurance Co. ltd                      | 39.97%                                                     | 50.92%                                                     | 50.31%                                                     |
| 4                                                          | Cholamandalam MS General Insurance Co. Ltd.                | 39.55%                                                     | 29.98%                                                     | 34.26%                                                     |
| 5                                                          | CignaTTK Health Insurance Co. Ltd.                         | 0.00%                                                      | 9.33%                                                      | 7.49%                                                      |
| 6                                                          | Future Generali India Insurance Co. Ltd.                   | 51.00%                                                     | 48.22%                                                     | 46.58%                                                     |
| 7                                                          | HDFC ERGO General Insurance Co. Ltd.                       | 56.95%                                                     | 48.32%                                                     | 55.30%                                                     |
| 8                                                          | ICICI Lombard General Insurance Co. Ltd                    | 22.57%                                                     | 33.58%                                                     | 24.79%                                                     |
| 9                                                          | IFFCO Tokio General Insurance Co. Ltd                      | 60.57%                                                     | 68.58%                                                     | 56.01%                                                     |
| 10                                                         | Liberty Videocon Genral Insurance Co. Ltd.                 | 34.09%                                                     | 65.73%                                                     | 74.62%                                                     |
| 11                                                         | Magma HDI General Insurance Co. Ltd                        | 34.88%                                                     | 61.39%                                                     | 63.58%                                                     |
| 12                                                         | Max Bupa Health Insurance Co. Ltd.                         | 52.04%                                                     | 66.98%                                                     | 53.23%                                                     |
| 13                                                         | Raheja QBE General insurance Co. Ltd.                      | 0.00%                                                      | 0.00%                                                      | 0.00%                                                      |
| 14                                                         | Royal Sundaram General Insurance Co. Ltd                   | 27.48%                                                     | 23.03%                                                     | 35.01%                                                     |
| 15                                                         | SBI General Insurance Co. Ltd.                             | 21.91%                                                     | 23.55%                                                     | 40.93%                                                     |
| 16                                                         | Star Health and Allied Insurance Co. Ltd.                  | 64.30%                                                     | 43.95%                                                     | 23.04%                                                     |
| 17                                                         | Tata- AIG General Insurance Co. Ltd                        | 22.90%                                                     | 27.02%                                                     | 28.67%                                                     |
| 18                                                         | Universal Sompo General Insurance Co. Ltd.                 | 75.92%                                                     | 84.36%                                                     | 86.33%                                                     |
| TOTAL(b)                                                   | TOTAL(b)                                                   | 34.10%                                                     | 37.46%                                                     | 37.33%                                                     |
| GRAND TOTAL(a+b) 43.28%                                    | GRAND TOTAL(a+b) 43.28%                                    | GRAND TOTAL(a+b) 43.28%                                    | 43.61%                                                     | 44.82%                                                     |