Life Insurance Companies in India

July 21, 2021
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Top 10 Life Insurance Companies in 2021.

People work hard and plan for their future life, but life is uncertain and unpredictable. An event like our near one’s death is harrowing and leaves the family in an emotional and financial crisis. To plan our family’s security, the necessary thing is to cover yourself with Life Insurance.

In a simple word, It provides a dedicated sum of money on the demise of the policyholder or after a certain amount of time. It is one of the essentials which an individual should have for the more stable future of his family in his absence.  

In India, 24 Life Insurance Companies are operating, approved, and Recognized by IRDAI (Insurance Regulatory and Development Authority of India), a regulatory body of the insurance and reinsurance industry.

We have shortlisted the Top 10 Life Insurance Companies in India (2021) based on The Claim Settlement Ratio (CSR), customer satisfaction level, and after-sale services.

1. Max Life

Max Life Insurance Company acquires top of the list. The company came into existence in 2000 and is the largest non-bank private sector insurance company in India. It is a joint venture between Max Financial Services (Indian Company) and Mitsui Sumitomo Insurance Company (Japanese Insurance company), with assets under management crossing Rs. 50,000 Crores.

The Claim settlement ratio is 99.2% highest in the Insurance Industry that is 8,804 claims till now.

2. TATA AIA Life Insurance Company 

In the second place, it is a joint venture of TATA AIG Life Insurance Company and AIA (American International Assurance) Hong Kong-based Company. The company’s strengths have been in Tata’s established position as a reliable brand in the Indian market.

AIA is the largest independent insurance group globally, crossing 18 markets in the Asia Pacific. Tata AIA  asset under management in 2019 is Rs. 28,430 Crores.

The claim settlement ratio is 99.07% as per the latest data, with 3,659 claims paid.

3. HDFC Life

The third place is occupied by HDFC Life Insurance Company. It is a joint venture between HDFC Ltd, India’s one of the biggest financial institutions, and Standard Life Aberdeen (a global investment company).

The company came into existence in 2000 and went on to become one of the most reputed insurance providers in the country.

The claim settlement ratio of the company is 99.04%, with 11,031 successful claims paid.

4. ICICI Prudential

The fourth-place goes to ICICI Prudential Life Insurance Company. The company came into existence in 2000 and has maintained its status as one of the most extensively recognized insurance companies in the country.

The insurance company is a joint venture between ICICI Bank and Prudential Corporation Holdings Limited. ICICI Bank holds a 74% stakeholding, and Prudential Plc holds a 26% stake in the venture.

Its customer-centric approach and strong bancassurance and distribution channels have made it one of the best insurance companies in India.

The Total Assets Under Management of the company are Rs. 1,604.10 crores and the company have a Claim Settlement Ratio of 98.58% backed with 11,546 claims paid.

5. Life Insurance Corporation of India

LIC stands at the fifth position. It is the largest insurance company in India and the only public company out of the 24 life insurance companies present in the Indian market.

It came into existence in the year 1956 is also one of the oldest insurance companies in India. The company’s main strength lies in the trust it has among Indians due to its well-established presence for over half a century.

LIC’s total asset under management is Rs. 3,11,1847 crores with a claim settlement ratio of 97.79%, in which they have settled over 25 crore claims till now.

6. Reliance Life Insurance Company

At the sixth position, Reliance Life Insurance is a joint venture between Reliance Capital and Nippon Life (the most extensive Japanese insurance company). The company came into existence in 2001.

The stakes of Reliance are 51%, and Nippon stands with 49% in the company. The Reliance Nippon has assets under management is Rs. 20,281 crores.

The Claim Settlement Ratio of 97.71% with 15,211 claims paid by the company.

7. SBI Life Insurance Company

State Bank of India Life Insurance stands in seventh place. It is a joint venture between India’s largest bank State Bank of India, and the leading global insurance company BNP Paribas Cardiff (a French multinational bank and financial services company) incorporated in 2000.

It is one of India’s best insurance companies, with an authorized capital of Rs. 29,000 crores. The claim settlement ratio of the company is 95.03%, with 13,303 claims settled by the company.

8. Bharti AXA Life Insurance Company

At the eighth position, Bharti AXA Life Insurance is a joint venture between Bharti Enterprises and AXA Group (a French multinational insurance firm). The company came into existence in 2006.

Bharti holds 51% of the shareholding, and AXA owns 49%. The company has a claim settlement ratio of 97.28%

9. Aditya Birla Sun Life

The ninth position goes to Aditya Birla Sun Life Insurance. It is a joint venture company between Aditya Birla Group and Sun Life Financial Inc. Sun Life Financial is a renowned international financial services organization in Canada.

Aditya Birla Sun is abbreviated as ABSLI and came into existence in 2000. The Claim Settlement Ratio of the Company is 97.15%, which means, 8,055 claims have been paid by the company till present.

10. Exide Life Insurance Company

In the tenth position, Exide life insurance company came into existence in 2001. The company is owned by Exide Industries Ltd. The company serves over 15 lakh customers and manages assets of over INR 15,795 Crores.

Exide Life distributes its products through multi-channels viz. Agency, Bancassurance, Corporate Agency & Broking, Direct Channel, and Online.

The claim settlement ratio of the company is 97.03%

 

Apart from Financial security, the life insurance policy has other benefits also: –

  • policies offer attractive tax benefits u/s 80C and help you save a significant amount that you would otherwise spend as taxes.
  • The individual who avails of life insurance has the choice of helping a loan against their insurance policy without hampering the benefits provided by the policy they have purchased.
  • Policies serve as the best possible tool for the coverage of loans and mortgages availed by the policyholder. Suppose there is ever any unforeseen situation due to which the policyholder is not able to repay his / her loan or mortgage. In that case, the bereaved family members will not have the burden of repayment, and the policy can be used to repay the loan or mortgage. 

Note: The Insurance companies mentioned above are based on the high claim settlement ratio, after-sale services, and customer satisfaction level.

To see IRDAI Annual Report for FY 2018-19 click below:

Life Insurance companies Claim Settlement Ratio for FY 2018-19

Article Categories:
Insurance

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