Minister of State in the Ministry of Finance(Shri Namo Narain Meena)
(a) and (b): Life Insurance Corporation of India (LIC) has informed that the total premium
collected, claims settled and outstanding claims during the last three years and current
financial years is as under:
Year Premium Claims Outstanding claims collected Maturity Death Maturity Death (Rs. in crore)
2007-08 1.49.705.59 31.873.35 5.138.12 112.66 222.48
2008-09 1,57,186.55 33,377.85 4.484.38 149.63 234.76
2009-10 1,85.985.91 44,984.60 5.609.87 208.50 208.76
2010-11 88.598.43 15.727.91 2.901.59 326.18 632.86
(Upto 30.09.2010)
(c) to (e): The IRDA (Protection of Policyholders` Interests) Regulations 2002, provides
the claims settlement procedure pertaining to life insurance policies. The details are as
under:
# A life insurance policy shall state the documents which are normally required to be
submitted by a claimant in support of a claim.
# A life insurance company, upon receiving a claim, shall process the claim without
delay. Any queries or requirement of additional documents, to the extent possible, shall be
raised all at once and not in a piece-meal manner, within a period of ! 5 days of the receipt
of the claim
# A Claim under a life policy shall be paid or be disputed giving all the relevant
reasons, within 30 days from the date of receipt of all relevant papers and clarifications
required. However, where the circumstances of a claim warrant an investigation in the opinion
of the insurance company, it shall initiate and complete such investigation at the earliest,
in any case not latter than 6 months from the time of lodging the claim.
# Where a claim is ready for payment but payment cannot be made due to any reasons of
a proper identification of the payee, the life insurer shall hold the amount for the benefit
of the payee and such an amount shall earn interest at the rate applicable to a savings bank
account with a scheduled bank (effective from 30 days following the submission of all papers
and information).
# Where there is a delay on the part of the insurer in processing a claim for a reason
other than the one covered by sub-regulation (4) above, the life insurance company shall pay
interest on the claim amount at a rate which is 2% above the bank rate prevalent at the
beginning of the financial year in which the claim is reviewed by it.
