Question : Settlement of Insurance Claims

(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?

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(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.
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