LIC Settlement Fee: LIC settlement charge larger than friends’

MUMBAI: LIC had a declare settlement ratio of 98.5% as of March 31, 2023, in accordance with information launched by the Insurance coverage Regulatory and Improvement Authority in its annual report. The ratio confirmed a slight lower from the 98.7% reported a 12 months earlier. In distinction, non-public sector counterparts had a declare settlement ratio of about 98% — barely down from earlier 12 months’s 98.1%.
For group life insurance coverage enterprise in fiscal 2022-23, out of a complete of 12.5 lakh claims, life insurance coverage corporations settled 12.4 lakh — attaining a settlement ratio of 99.4%. Notably, LIC settled nearly 99% of group claims, whereas non-public life insurers surpassed with a ratio of 99.4%.

Surrenders/withdrawals elevated by 25.6%, reaching nearly 2 lakh crore throughout the identical interval, with LIC accounting for 56.3%. The general advantages paid by the life insurance coverage business in 2022-23 amounted to about Rs 5 lakh crore, constituting 64% of the online premium.
Concerning particular person life insurance coverage enterprise for the 12 months 2022-23, of the overall 10.8 lakh loss of life claims, life insurance coverage corporations settled 10.6 lakh — disbursing a complete profit quantity of Rs 28,611 crore. Notably, 10,822 claims have been repudiated, amounting to Rs 1,026 crore, whereas 4,340 claims have been rejected, totalling Rs 24 crore. As of the tip of the 12 months, 833 claims amounting to Rs 350 crore have been pending.
Throughout 2022-23, life insurers issued 284.7 lakh new insurance policies below particular person enterprise, of which LIC issued 204.3 lakh insurance policies (71.8%), and personal life insurers issued 80.4 lakh insurance policies (28.3%). Personal sector insurers registered 8.8% progress, whereas LIC registered 5.9% decline, and the business registered a decline of two.2% in variety of new insurance policies issued towards the 12 months earlier than.