What is Claim Settlement Ratio in Term Insurance?
Claim Settlement Ratio (CSR) is the percentage of total claims settled by an insurer compared to the total claims received in a year. A higher CSR means the insurer is more likely to approve and pay your nominee’s claim in case of your unfortunate demise. It reflects the insurer’s reliability and trustworthiness.
Why is Claim Settlement Ratio Important?
Choosing a term insurance plan based on CSR is crucial because:
Ensures Peace of Mind: You can trust your family will get the sum assured when needed.
Indicates Insurer’s Credibility: A high CSR shows good claim management and customer satisfaction.
Quick Payouts: Companies with higher CSR often process claims faster.
7 Best Term Insurance Policies in India for 2025 with the Highest Claim Settlement Ratios
| Insurance Company | Plan Name | Claim Settlement Ratio (2023-24) | Starting Monthly Premium | Maximum Sum Assured |
|---|---|---|---|---|
| Max Life | Smart Secure Plus Plan | 99.34% | ₹440 | ₹5 Cr+ |
| HDFC Life | Click 2 Protect Super | 99.39% | ₹420 | ₹10 Cr |
| ICICI Prudential | iProtect Smart | 98.60% | ₹490 | ₹5 Cr |
| LIC | Tech Term Plan | 98.52% | ₹750 | ₹1 Cr+ |
| Tata AIA | Sampoorna Raksha Supreme | 99.01% | ₹530 | ₹2 Cr+ |
| Bajaj Allianz | Smart Protect Goal | 98.48% | ₹470 | ₹2 Cr |
| SBI Life | eShield Next | 97.76% | ₹510 | ₹2.5 Cr |
Disclaimer: The mentioned premiums are estimated for a healthy 30-year-old male non-smoker seeking a ₹1 crore term cover for a 30-year duration.
Key Features of These Plans
Here’s what makes these plans stand out:
Customizable Policy Duration: Many insurers provide term options ranging from 10 years up to 40 years, allowing flexibility based on your needs.
Customizable Riders: Add-ons like critical illness, waiver of premium, and accidental death benefit
Affordable Premiums: Competitive pricing for large sum assured
Online Availability: Easy to compare and purchase directly from websites
How to Choose the Best Term Insurance Based on CSR?
When selecting the right plan, consider:
CSR Above 98%: Always choose insurers with at least 98% CSR for better claim reliability
Premium Affordability: Ensure you can sustain premium payments over long durations
Claim Process Simplicity: Read about claim settlement procedures and customer support quality
Rider Options: Add benefits that suit your health, lifestyle, and financial needs
Insurer’s Reputation: Go with IRDAI-registered and trusted companies
FAQs: Best Term Insurance with High CSR in India
Q1: What is a good Claim Settlement Ratio?
A CSR above 98% is considered excellent for life insurance companies in India.
Q2: Should I only look at CSR while choosing a plan?
CSR is critical, but you should also consider premium, features, and riders offered.
Q3: Do all high CSR insurers process claims fast?
Generally yes, but you should also check customer reviews and service ratings.
Q4: Where can I find updated CSR data?
CSR data is published annually by IRDAI in its annual report.
Conclusion
Choosing a term insurance plan with a high claim settlement ratio is essential for your family’s financial security. It not only ensures that claims are honored but also reflects the company’s trustworthiness. In 2025, insurers like HDFC Life, Max Life, and Tata AIA are leading with top CSRs. Always compare plans based on CSR, benefits, and affordability to make the most informed decision.
