Life insurance is a contract between the life insurance company and the life insured, where the insurer promises to pay a sum of money or how much the life insured took a coverage himself to the designated beneficiary, upon the death of insured person. In this statement the important thing is the assurance of settled the coverage amount to the specified person due to the risk of life insured. For that, the selection of life insurance company is important in terms of settling the claim. Claim settlement ratio of life insurance company provided by the IRDAI is helps us to find better life insurance company to insure. In this article the review of Max Life Insurance claim settlement ratio is given in the financial year of 2018-19 also provide the claim settlement history of that life insurance company.


Max Life Insurance Company Limited is one of the leading life insurers in India. It is a joint venture between Max Financial Services Ltd – is a part of Max Group, which is leading multi-business corporation and Mitsui Sumitomo Insurance Company Ltd – is a member of MS & AD Insurance Group, which is amongst the leading insurers in the world.

Max Life Insurance has a vision to be the most admired life insurance company by securing the financial future of its customers.

Max Life offers comprehensive protection and long-term savings, through its high-quality multi-channel distribution including agency and third distribution partners.

A financially stable company with a strong track record over 20 years, Max Life offers superior investment expertise. The company has a strong customer-centric approach focused on need-based sales and quality service delivered through its superior human capital.

During the financial year 2019-20, Max Life achieved ‘Gross Written Premium’ of Rs. 14,575 crore and had sum assured in force of Rs. 9,13,660 Crore. As on 31st March 2020 the company had 68,471 Crore of AUM. The company has more than 35 lakh customers serviced by its 12,082+ employees and 48,522+ agent advisors through 239 offices across the country.

Claim Settlement Ratio of Max Life Insurance

The process of pays out a risk coverage amount to the insured on the occurrence of the event specified in the contract, in a return of premium paid for the insured is called claim settlement of insurance company.

Claim settlement ratio is defined as number of claims settled to the insured against the number of claims filed to the insurer.

CSR = (Total no of claims paid during a financial year) / (Total no of claims received in a financial year)

While choosing the life insurance company to insure, it is an important factor to take into consider.

The Claim Settlement Ratio of Max Life Insurance in the financial year 2018-19 is 99.22%

[caption id="attachment_3368" align="aligncenter" width="593"]Claim Settlement Ratio of Max Life Insurance Claim Settlement Ratio of Max Life Insurance[/caption]

Claim details of Max Life Insurance

Max Life Claim Settlement 2018-19

Claims pending at the starting of FY 2
No of claims intimated in FY 2018-19 15085
Total No of Claims 15087
No of Paid Claims 14897
No of Claims Rejected 187

As per the details provided in the above table Max Life Insurance Company has settled 99.22% of death claims against the total number of claims reported in the financial year of 2018-19.

The company has rejected 187 claims that leads its claim repudiation ratio as 1.24% in the year of 2018-19.

Max Life has paid 452 crores of claim amount for 14897 claims to their customers in the financial year of 2018-19.

Claim Settlement Ratio of Max Life for last 5 years

To know the history of claim settlement is important before insuring in to the life insurance company. For that IRDAI provide annual report of insurance companies every year, that contains the complete financial status of an insurance companies and also the indicators like claim settlement ratio, solvency ratio…etc.

The claim settlement ratio of Max Life life for last 5 years is tabulated below.

Financial Year

Claim Settlement Ratio

2014-15 96.03%
2015-16 96.95%
2016-17 97.81%
2017-18 98.26%
2018-19 99.22%

The graphical representation of Max Life’s claim settlement ratio for 5 years is given below.

[caption id="attachment_3369" align="aligncenter" width="570"]Claim History of Max Life Claim History of Max Life[/caption]

From the above graph indicates that the claim settlement ratio of Max Life Insurance company has increased every year in a growth state. Also, the company maintain its consistency for providing claims to their customers year on year.

Review of Max Life’s Claim Settlement Ratio

The basics of life insurance company is to provide financial security or claim if the insured person is no more. But insurance companies rejected and pending some of the claims due to some reason. None of the insurance companies aim is to reject their customer claims and also that’s depends on the details providing at the time of entering in to the insurance policy. People have a responsibility to provide correct details required at the time of taking the policy. At the time of claim, the pending can be avoided by providing required documents to settle the claim.

Even though the company rejecting claims, the claim settlement ratio is stable and above 90%, which is very good. If the company try to reduce the number of claims and will settle more claims then the company will be a very good company to be insure.

Source : IRDAI

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