LIC also outshined in private insurer in business with a slide of only 5.6% as against private insurers which are all in double digits ranging from 17% to 42%. The only exception is HDFC Life Insurance, which has a fall percentage of 5.6%. IRDA monitors fall percentage as the number of policies fell during the year divided by the average of the policies in force at the beginning and end of the year, according to media reports.
Life Insurance Policy (LIC) has outshined other insurance
agencies in terms of consumer friendliness parameters. It had fewer slips, higher claim settlement and no penalties from the
regulator.
Interestingly, the claim settlement
percentage of LIC was better than private life insurance agencies. Its
settlement percentage increased to 97.73% in FY13 from 97.42% in the previous
year. While the rejections was only 1.12% compared to 1.30% earlier,
reported media.
Private insurance agencies recorded a
fall in settlement percentage to 88.65% from 89.34% in FY12. In its
annual report FY13, Insurance Regulatory and Development Authority states
(IRDA), “Private insurers had repudiated more number of claims when compared to
LIC. The percentage of repudiations (by private insurers) was 7.85%, almost
unchanged from pervious years 7.82% in FY12.”
According to TOI, “The 13-month persistency
(policies which are renewed after a year) is the highest for PNB MetLife at 71.22% on a much smaller business. LIC, Max Life
Insurance and IDBI Federal Life Insurance have a 13-month persistency of 70%.
For other private companies, the ratio ranges from a low of 36% to 69%.
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