The financial instrument or an invisible product used to provide a coverage of human life against any risk is called life insurance. It is a contract offered by an insurance company and assured to provide financial security of the insured people by exchanging of paid premium. As per the contract to providing claims in case of any risk of life insured is important for life insurance company. For that, the company should be financially stable and perform well in their business. So, selecting an insurance company to insure is also an important thing for the life insured. Claim settlement ratio is one of the important factors helps to find the good life insurance company. In this article the review of Shriram Life Insurance Claim Settlement Ratio is given in the financial year 0f 2018-19 and also provide the company’s claim history.


Shriram Life Insurance Company is a joint venture between Shriram Group - one of the most leading finance company, founded in 1974, headquartered in Chennai and Piramal Group, a global business conglomerate and Sanlam Group, a leading financial services group based in Cape town, South Africa.

The company (SLIC) was established in the year of 2005 and started its operations in the year of 2006. The Company is well known for their efficient use of capital and low operational costs.


Together, Sanlam and Shriram’s group aims to provide the best life insurance products to cater different segments of Indian Market. In 2016, Shriram Life Insurance Company received the Bizz Americas 2016 Awards.

The Shriram Life Insurance Company was founded with the objective of reaching out to the “common man” with products and services that would be helpful to them as they set out the path to “prosperity”.


Operational efficiency, integrity and a strong focus on catering to the needs of the average Indian, by offering him high and cost-effective products and services, are the core values that drive the organization.

These values have been strongly adhered to over the decades and are now an integral part of the organization’s DNA.

The company prides itself on its deep understanding of the customer. Each product or service is tailor-made to specifically suit the needs of the customer.

 Claim Settlement Ratio of Shriram Life Insurance

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 claim paid in a financial year) / (Total no of claims received in a particular financial year)

It is an important factor while choosing the life insurance company to insure. Higher the claim settlement ratio indicates the better insurer to insure.

The claim settlement ratio of Shriram Life Insurance Company in the financial year 2018-19 is 85.30%.

[caption id="attachment_3387" align="aligncenter" width="577"]Claim Settlement Ratio of Shriram Life Insurance Claim Settlement Ratio of Shriram Life Insurance[/caption]

Claim Details of Shriram Life Insurance

The claim details of Shriram Life Insurance Company are tabulated below.

Shriram Life Claim Settlement 2018-19

Claims pending at the starting of FY 62
No of claims intimated in FY 2018-19 2768
Total No of Claims 2830
No of Paid Claims 2414
No of Claims Rejected 334

Form the above data Shriram Life Insurance Company settled 85.30% of death claims against the total number of claims received by the company in the financial year 2018-19.

The company rejected 334 claims and the repudiation ratio is 11.80% in the year of 2018-19.

Shriram Life Insurance company has paid 66 crores of the claim amount settled to their clients for 2414 claims in the year of 2018-19.

Claim Settlement Ratio of Shriram 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.

For life insurance companies, it is important to maintain higher and consistent claim settlement ratio as per the IRDAI guidelines.

Because, higher the claim settlement ratio indicates the better insurance company for the people to insure.

The details of Claim Settlement ratio of Shriram Life for last 5 years are given below.

Financial Year

Claim Settlement Ratio

2014-15 65.66%
2015-16 60.24%
2016-17 63.53%
2017-18 80.23%
2018-19 85.30%

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

[caption id="attachment_3388" align="aligncenter" width="615"]Claim History of Shriram Life Claim History of Shriram Life[/caption]

The above graph clearly indicates the claim settlement ratio was not good in the financial year of 2015-16. After that from the year of 2016-17 their claim settlement ratio has increased linearly but not in the better way because the percentage of settled claim is below 90% which is very poor.

Review of Shriram Insurance Company’s Claim Settlement Ratio

None of the life insurance company’s motive is to reject or holding the claim request received by them. It is people’s responsibility to honestly provide the details asked at the time of availing the insurance policy. Also, providing the required documents at the time of claim is important that it could avoid the claim pending.

Here concluded that the claim settlement ratio of Shriram Life Insurance is not stable and below 90%. Also, the claim rejection ratio is very high even though the intimated claim in a financial year is less. So, to get an insurance coverage from Shriram Life is little risky. To settle more intimated claim is very important also to reduce the rejection ratio is most important to maintain and increase the claim settlement ratio in the upcoming financial year to becoming a good company to insure.

Source : IRDAI

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