Death Claim settlement ratio of Life Insurers in Year 2014-2015

Death Claim settlement ratio of Life Insurers in Year 2014-2015

IRDA Updates

Insurance Regulatory and Development Authority of India (IRDAI) have published its annual report of year 2014-2015 on 19/01/2016. Along with all the other data related to life insurers, general insurers and health insurer, IRDAI have also published the data related to individual death claim settle by all the 24 Life Insurance companies in year 2014-2015.

Individual death Claim Settlement Ratio of Life Insurers 

Death claim settlement ratio is the percentage of claim settled  by a life insurer out of the total claim raised in a particular year. In year 2014-2015, the industry average of death claim settlement ratio was 96.97% in numbers and 90.91% in amount. If we look at the private life insurers the average was 89.40% for numbers of claim settled, while 78.39% of claimed amount paid by private life insurers. Claim settlement ratio of state owned insurer, Life Insurance Corporation of India (LIC) was 98.19% of  number of claim paid and  95.51% of claimed amount paid in year 2014-2015.

Individual death claim settlement ratio (on number basis) by Life Insurers in Year 2014-2015

Top Insurers on basis of higher death claim settlement ratio

In year 2014-2015, the industry average of death claim settlement ratio was 96.97% in numbers and 90.91% in amount. On number basis only one insurer ie LIC of India is above the industry average with 98.19% death claim settlement ratio after that, in top five are Max Life (96.03%), Birla Sunlife (95.30%), Tata AIA (94.47%) and Star Union (94.47%).

On the basis of amount of claim settled, industry average was 90.91%, and among the all insurer top five are LIC of India (95.51%), Max life (93.59%) and Star Union (91.54%) which are above the industry average, while other two in top five are Sahara (89.86%) and Tata AIA (89.54%)

Individual death claim settlement ratio (on amount basis) by Life Insurers in Year 2014-2015

How does death claim ratio help policy holders?

Ultimate motive of buying a life insurance by a customer is to provide a financial security to his/her dependent after untimely demise of the life assured. Death claim ratio provide a view about a insurers ability to pay the claim and its ratio of rejection of claim. Though majority of claims which are repudiated are due to suppression of material facts by life assured at the time of taking policy, but higher rejection ratio reduces the credibility of insurer. A low rejection and outstanding in number but higher in amount show that an insurer is not able to pay claims of higher sum assured policy on time. This ratio help the policy holder to choose a good life insurer for taking a life insurance policy.

 To download the full annual report of IRDAI please Click Here

Relaxations in club membership conditions for LIC agents

Relaxations in club membership conditions for LIC agents

LIC Agents, Life Insurance

Life Insurance Corporation of India (LIC) has more than 12 lac agents. To motivate the agents, LIC have made different club according to the business procured by agents and club membership rules. These clubs mainly are, Distinguish Club, Branch Managers’ Club (BM Club), Divisional Managers’ Club (DM Club), Zonal Managers’ Club (ZM Club), Chiarmans’ Club (CM Club), Newly introduced Galaxy club and Corporate Club.

As per the business procured by the agents and club membership conditions, agent gets the club membership for one year from 1st of September to 31st August, and can continue or become member of higher club by continuing or qualifying conditions of higher club.

LIC has also provided some relaxation in these conditions so as to bring new and more agents in these clubs

Relaxation conditions to qualify or continue the club membership in a club

  1. An agent will have to fulfill condition with regard to Renewal Commission and First Year Renewal Commission. However, a shortfall in fulfillment of First Year Commission (paid) condition may be accepted maximum up to 50%, in years to be required for Club Membership, provided it is compensated with the same or higher percentage increase on the basic condition prescribed for Renewal Commission paid
  2. A shortfall in fulfillment of Renewal Commission paid condition may be accepted up to a maximum of 100% in years to be required for Club Membership provided it is compensated with the same or higher percentage increase on the basic condition prescribed for First Year Commission paid. This means a newly appointed LIC agent can aspire to be member of any club from day 1.
  3. If first year lapsation of a continuing club member go above 15%, but other qualifying conditions are fulfilled, then he may be continued in the club but, he will be kept under watch and no fresh advances will be paid. But if a FP lapsation is greater than 15% in a qualifying year for a aspiring club member then that year will not be considered for club membership purpose.
  4. An agent who is club member for a certain club will continue to be in club if he fails to bring minimum net number of lives, if he has completed 5 years in same club then relaxation of 1 year and if club member of certain club for 10 years then relaxation of 2 years. Note: This relaxation is for only minimum net number of lives, agent have to qualify in other conditions.
  5. An agent who has completed the age of 60 years as on the date of commencement of club membership year and had been a continuous member of the same club for not less than 15 membership years can continue the membership of the same club by fulfilling at least 75% of the criteria applicable for that club.

These relaxations are given by LIC to motivate agent, even if agents is not able to do required amount of business (according to above mentioned conditions) due to some unforeseen conditions with him/her.

LIC’s New Plan Jeevan Shikhar (Plan no. 837)

LIC’s New Plan Jeevan Shikhar (Plan no. 837)

LIC, Life Insurance

LIC of India is going to launch a new endowment plan Jeevan Shikhar (Plan No. 837) from 11/01/2016. Jeevan Shikhar is a non linked, with profit, saving cum protection, single premium, Close ended Plan.  In Jeevan Shikhar risk is 10 times of the tabular premium. Unique identification number (UIN) of Jeevan Shikhar plan is 512N305V01.

Death Benefit in  Jeevan Shikhar (Plan No. 837)

On Death during the first 5 Policy years

Before the date of commencement of the Risk: Refund of single premium without interest. Single premium mentioned here will not include any extra amount if charged under the policy due to underwriting decision and taxes.

After date of commencement of Risk: “Sum Assured on Death” equal to 10 times of tabular single premium will be payable.

Also Read: LIC’s New Plan Jeevan Labh (Plan No. 836)

On Death after completion of 5 policy years but before the date of Maturity

“Sum Assured on Death” equal to 10 times of tabular single premium along with Loyalty addition, if any, will be payable.

Tabular single premium calculated for chosen Maturity Sum Assured (MSA), Mentioned above does not include any extra amount chargeable under the policy due to underwriting decision or taxes and is before applying any rebate

Maturity Benefit in  Jeevan Shikhar (Plan No. 837)

On life assured surviving till the end of the policy term, the Maturity Sum Assured (MSA) along with Loyalty addition (LA), if any, will be payable.

Loyalty Addition

The policy under this plan will be eligible for share in surplus (profits) in the form of Loyalty  Addition, depending upon the experience of the LIC. The Loyalty Addition, if any, will be payable on death or surrender, provided the policy run for at least five policy year or on policy holder surviving to the maturity.

 

Other conditions and policy features of Jeevan Shikhar

  1. Policy can be surrendered at any time during the policy term: First year- 70% of Single Premium,Thereafter-90% of Single premium
  2. Loan facility is available under this plan, after 3 months of the issuance of the policy.
  3. Policy can be taken from back date upto same financial year
  4. Nomination and assignment in this policy is available.
  5. This plan is available for sale upto 31/03/2016.

हिन्दी में पढने के लिये यहाँ क्लिक करें