New Delhi: Max Life Insurance Co. Ltd (“Max Life/ “Company), one of the India’s leading life insurance company, today announced that it has paid 14,897 death claims amounting to Rs. 452 crore in FY 2018-19, thus achieving a claims paid ratio of 98.74%. With investments in fraud management and usage of robust analytical models there has been an increase of 48 bps over FY 17-18, when the company’s claims paid ratio of the total individual death claims received stood at 98.26%. Demonstrating steady growth from 97.81** in FY17 to 98.26*** in FY18 to 98.74* in FY19, the life insurer has demonstrated consistent improvement in this most important customer parameter. In FY 18-19, out of total 15087 death claims, only 187 death claims were rejected, and 3 cases were pending for closure at the end of the financial year.
With an average individual death claim settlement done in 4 days, post receipt of documents from customer, for FY19, Max Life has maintained a strong track record in settling claims consistently for the past 5 years. Since inception, Max Life has paid Rs. 2,675 crore towards 97,604 policies for individual death claims.
Commenting on the accomplishment, Mr. Manik Nangia, Senior Director & Chief Operations Officer, Max Life said, “We truly believe that ‘Claims Paid Ratio’ is the ultimate manifestation of a life insurer’s commitment towards its customers and overall reliability. Our strong position in paying claims is a validation which we hope to further leverage by investing in underwriting capabilities, technological intervention and building an overall robust claims ecosystem. In a country like ours, where life insurance uptake is still fairly poor, high-grade claims paid ratio helps provide the right assurance to customers and their families against future uncertainties thereby encouraging them to buy pure protection life insurance.”
Over the years, Max Life has demonstrated a strong claims paid ratio, reinforcing that prompt settlement of death claims is the most important promise a life insurer makes at the time of selling a life insurance policy. This has been made possible using both analytical and technology interventions. The Company has introduced predictive analytical models and, robust checks at the time of policy solicitation in high-risk geographies and geo-tag enabled field or video verifications of customers through its Risk Management Unit.
*basis Max Life Public Disclosures 2018-19
**basis IRDAI Annual Report 2016-17
***basis IRDAI Annual Report 2076-18