Broker Handbook (IBAI)

INSURANCE BROKERS ASSOCIATION OF INDIA
GENERAL INSURANCE
CLAIM INSIGHTS HANDBOOK
FOR POLICYHOLDERS
3rd Edition
CONTENTS
CONTENT 2
ABOUT THE HANDBOOK 4
ABOUT INSURANCE BROKERS 4
ABOUT INSURANCE BROKERS ASSOCIATION OF INDIA 4
METHODOLOGY 5
OVERALL INSURERS’ COMPARISON: SOLVENCY RATIO 7
OVERALL INSURERS’ COMPARISON: CLAIMS SETTLEMENT RATIO 8
OVERALL INSURERS’ COMPARISON: CLAIMS SETTLEMENT EFFICIENCY RATIO 10
OVERALL INSURERS’ COMPARISON: CLAIMS REPUDIATION RATIO 12
OVERALL INSURERS’ COMPARISON: CLAIMS OUTSTANDING RATIO 14
OVERALL INSURERS’ COMPARISON: CLAIMS PENDENCY RATIO 16
FIRE: CLAIMS SETTLEMENT EFFICIENCY RATIO 18
FIRE: CLAIMS PENDENCY RATIO 19
FIRE: CLAIMS SETTLEMENT RATIO 20
FIRE: CLAIMS REPUDIATION RATIO 21
FIRE: CLAIMS OUTSTANDING RATIO 22
MARINE CARGO: CLAIMS SETTLEMENT EFFICIENCY RATIO 23
MARINE CARGO: CLAIMS PENDENCY RATIO 24
MARINE CARGO: CLAIMS SETTLEMENT RATIO 25
MARINE CARGO: CLAIMS REPUDIATION RATIO 26
MARINE CARGO: CLAIMS OUTSTANDING RATIO 27
MARINE HULL: CLAIMS SETTLEMENT EFFICIENCY RATIO 28
MARINE HULL: CLAIMS PENDENCY RATIO 29
MARINE HULL: CLAIMS SETTLEMENT RATIO 30
MARINE HULL: CLAIMS REPUDIATION RATIO 31

CONTENTS
MARINE HULL: CLAIMS OUTSTANDING RATIO 32
MOTOR OD: CLAIMS SETTLEMENT EFFICIENCY RATIO 33
MOTOR OD: CLAIMS PENDENCY RATIO 34
MOTOR OD: CLAIMS SETTLEMENT RATIO 35
MOTOR OD: CLAIMS REPUDIATION RATIO 36
MOTOR OD: CLAIMS OUTSTANDING RATIO 37
MOTOR TP: CLAIMS SETTLEMENT EFFICIENCY RATIO 38
MOTOR TP: CLAIMS PENDENCY RATIO 39
MOTOR TP: CLAIMS SETTLEMENT RATIO 40
MOTOR TP: CLAIMS REPUDIATION RATIO 41
MOTOR TP: CLAIMS OUTSTANDING RATIO 42
HEALTH: CLAIMS SETTLEMENT EFFICIENCY RATIO 43
HEALTH: CLAIMS PENDENCY RATIO 45
HEALTH: CLAIMS SETTLEMENT RATIO 47
HEALTH: CLAIMS REPUDIATION RATIO 49
HEALTH: CLAIMS OUTSTANDING RATIO 51
MISCELLANEOUS: CLAIMS SETTLEMENT EFFICIENCY RATIO 53
MISCELLANEOUS: CLAIMS PENDENCY RATIO 55
MISCELLANEOUS: CLAIMS SETTLEMENT RATIO 57
MISCELLANEOUS: CLAIMS REPUDIATION RATIO 59
MISCELLANEOUS: CLAIMS OUTSTANDING RATIO 61
WHY AVAIL OF AN INSURANCE BROKER? 63
SOURCES AND LIMITATIONS OF CONSIDERED DATA 64
GLOSSARY 66
DISCLAIMER 67
ABOUT THE HANDBOOK
This handbook is a part of the continued efforts of the Insurance Brokers Association of
India (IBAI) to provide additional data to help policyholders make an informed decision
by analyzing general insurers from a claims perspective.
ABOUT INSURANCE BROKERS

Insurance Brokers are the only intermediaries who represent the policyholders and are
regulated by the IRDAI (Insurance Brokers) Regulations, 2018. Insurance brokers are the
fastest growing among insurance distribution channels contributing to about INR
30,000 crores of gross direct premium in FY16-17 resulting in 23.4% of the non-life
insurance premium. As per the EY Vision 2025 report on Insurance Brokers Driving
Customer Centric Growth, it is expected that insurance broking will contribute close to
40% of gross direct premium in non-life insurance in the progressive scenario. As per the
report, non-life insurance market in 2025 is expected to be at Rs. 4,00,000 Crs and
brokers’ market share is likely to be around Rs.1,60,000 Crs.
ABOUT INSURANCE BROKERS ASSOCIATION OF INDIA

Insurance Brokers Association of India (IBAI) is the only Insurance Regulatory and
Development Authority of India (IRDAI) recognized apex body of licensed Insurance
Brokers. As per Insurance Brokers’ Regulations 2002 framed by the IRDAI, all licensed
Brokers are required to be members of IBAI. As of 30th June 2018, there are 433
insurance brokers in India, including Direct Insurance Brokers, Composite Insurance
Brokers and Re-insurance Brokers.
4
METHODOLOGY
This study considers the following criteria to analyze the claims data of insurers, which
are published on their respective websites as a part of IRDAI Regulations.
The entire data used in this handbook is objective and based on public disclosures by
each insurer themselves on their websites as required under IRDAI’s public disclosure of
data requirements. Ratios have been calculated to compare the data with complete
transparency. Thus, the ratio calculations are entirely objective and none of the factors
involves personal opinions or any biases. The outcomes are purely data driven.
Please note the denominator for the Claim Settlement Efficiency Ratio, Claims
Pendency Ratio, Claims Settlement Ratio, Claims Repudiation Ratio and Claims
Outstanding Ratio is defined as below:
Total Claims Available for Processing = Total Claims Outstanding at the beginning of
the Quarter ended June 30th, 2018 + Sum of Total Claims Reported during quarters
1, 2, 3 and 4 of the year ended March 31st, 2018.
Please note each of these ratios is in percentage terms, calculated according to the
formulae defined below.
1. Solvency Ratio
It measures the extent to which assets cover expected future payments (i.e., claims).
IRDAI requires insurers to maintain a solvency minimum of 1.5 at all times. The
handbook captures these ratios as on March 31, 2018.
2. Claims Settlement Efﬁciency Ratio

The efficiency of an insurance company to settle the claims, i.e., the number of
claims settled in 3 months as compared to the total number of claims available for
processing.
“Higher the claims settlement efficiency ratio, better is an insurance company in
terms of the measured ratio”
Claims Settlement Efﬁciency Ratio =
Sum of Total number of claims settled within 3 months for quarters 1, 2, 3 and 4
Total Claims available for processing for the year ending March 31st, 2018
3. Claims Pendency Ratio

The number of claims that are pending for more than 1 year out of the total number
of claims available for processing.
“Lower the claims pendency ratio, better is an insurance company in terms of the
measured ratio”
Claims Pendency Ratio =
Sum of Total number of claims outstanding for more than 1 year for
the quarter ending March 31st, 2018
4. Claims Settlement Ratio

The number of claims settled during the year from the total claims available for
processing.
“Higher the claims settlement ratio, better is an insurance company in terms of the
measured ratio”
5
Claims Settlement Ratio =
Sum of Total number of claims settled for quarters 1, 2, 3 and 4
5. Claims Repudiation Ratio

The number of claims that were repudiated by the insurer out of the total number of
claims available for processing.
“Lower the claims repudiation ratio, better is an insurance company in terms of the
measured ratio”
Claims Repudiation Ratio =
Sum of Total number of claims repudiated and closed during quarters 1, 2, 3 and 4
6. Claims Outstanding Ratio

The number of claims that were outstanding out of the total number of claims
available for processing.
“Lower the claims outstanding ratio, better is an insurance company in terms of the
measured ratio”
Claims Outstanding Ratio =
Sum of Total number of claims outstanding for the quarter ending March 31st, 2018
Insurers are evaluated and ranked for the above 6 criteria for individual lines of business,
i.e., Fire, Marine Cargo, Marine Hull, Motor Own Damage, Motor Third Party, Health and
Miscellaneous and for all lines of business combined.
INSURER CATEGORIES
Insurers are categorized into four different categories according to the Gross Premium
Written by them in that line of business for quarters 1, 2, 3 and 4 of the year ended 31st
March 2018 from NL 26 disclosure for respective insurers. For ratios based on all lines of
business combined, the total premium written is considered.
i. Public Sector General Insurers

ii. Large Private Sector General Insurers: The top 10 private sector general insurers on
the basis of the gross premium written in that line of business for line of
businesswise ratios for the specified period.
iii. Small Private Sector Insurers: The remaining private sector insurers.
iv. Standalone Health Insurers: The claims settlement efficiency ratio, claims
repudiation ratio, claims outstanding ratio, claims settlement ratio and claims
pendency ratio were considered for the Health and Miscellaneous line of business
only for the following:
a. Apollo Munich Health Insurance d. Star Health and Allied Insurance
b. Max Bupa Health Insurance e. Cigna TTK Health Insurance
c. Religare Health Insurance f. Aditya Birla Health Insurance
6
OVERALL INSURERS’ COMPARISON:
SOLVENCY RATIO
It measures the extent to which assets cover expected future payments (i.e., claims).
IRDAI requires insurers to maintain a solvency minimum of 1.5 at all times. The solvency
ratios mentioned below are as on March 31, 2018.
PUBLIC SECTOR GENERAL INSURERS

RANK INSURER SOLVENCY RATIO
1 New India 2.58
2 Oriental Insurance 1.67
3 National Insurance 1.55
4 United India 1.54
LARGE PRIVATE SECTOR GENERAL INSURERS

1 Bajaj Allianz 2.76
2 SBI General 2.54
3 Shriram General 2.35
4 Royal Sundaram 2.21
5 HDFC ERGO 2.06
6 ICICI Lombard 2.05
7 TATA AIG 1.69
8 Reliance 1.68
9 IFFCO Tokio 1.62
10 Cholamandalam 1.61
SMALL PRIVATE SECTOR GENERAL INSURERS

1 Raheja QBE 4.00
2 Liberty Videocon 2.40
3 Universal Sompo 2.30
4 Magma HDI 2.01
5 Kotak Mahindra 1.88
6 Bharti AXA 1.86
7 Future Generali 1.69
STANDALONE HEALTH INSURERS

RANK INSURER SOLVENCY RATIO %
1 Max Bupa 2.11
2 Cigna TTK 2.06
3 Star Health 1.77
4 Apollo Munich 1.74
5 Aditya Birla Health 1.67
6 Religare Health 1.56
Note: The IRDAI prescribed minimum solvency ratio is 1.5 times the net written premium and net written claims at all
times.
7
CLAIMS SETTLEMENT RATIO
Claims Settlement Ratio for the year ended March 31, 2018: The number of claims settled
in the quarters 1, 2, 3 and 4 of the financial year ended March 31, 2018 from the total claims
available for processing, i. e., the total number of claims outstanding at the beginning of the
quarter 1 + total number of claims reported/booked during the quarters 1, 2, 3 and 4 of the
financial year ended March 31, 2018.
Higher the Claims Settlement Ratio,

better is an insurance company in terms of the measured ratio
CLAIMS SETTLEMENT NO. OF CLAIMS AVAILABLE
RANK INSURER
RATIO FOR PROCESSING
1 New India 93.06% 5,188,801
2 Oriental Insurance 87.65% 1,855,917
3 United India 75.69% 9,088,964
4 National Insurance 72.57% 2,823,963

RANK INSURER
1 IFFCO Tokio 90.69% 916,696
2 Royal Sundaram 87.14% 391,205
3 Bajaj Allianz 85.70% 1,297,117
4 Tata AIG 84.55% 763,228
5 HDFC ERGO 81.25% 581,934
6 ICICI Lombard 79.55% 1,729,737
7 Reliance 76.67% 1,573,853
8 SBI General 72.23% 186,804
9 Cholamandalam 68.97% 250,358
10 Shriram General 32.03% 355,459

RANK INSURER
1 Bharti AXA 82.25% 257,060
2 Liberty Videocon 81.34% 111,969
3 Universal Sompo 79.59% 130,269
4 Kotak Mahindra General 76.09% 15,835
5 Future Generali 74.89% 263,851
6 Magma HDI 65.79% 32,868
8
RANK INSURER
1 Religare Health , 89.06% 252,494
2 Max Bupa 87.95% 88,393
3 Aditya Birla Health 85.26% 76,318
4 Cigna TTK 84.82% 64,303
5 Apollo Munich 83.72% 652,532
6 Star Health 79.00% 701,881
Overall Industry Ratio 80.77%
*Please note that the above ranks have been derived on the basis of ratios calculated upto two decimal places. This data
is based on the number of claims and not claim amount. Data on claims by amount is not available in the public domain
in the Indian Market.
9
CLAIMS SETTLEMENT EFFICIENCY RATIO
Claims Settlement Efficiency Ratio for the year ended March 31, 2018: The efficiency of an
insurance company to settle the claims, i.e. the number of claims settled in 3 months as
compared to the total number of claims available for processing, i. e., the total number of
claims outstanding at the beginning of the quarter 1 + total number of claims reported/
booked during the quarters 1, 2, 3 and 4 of the financial year ended March 31, 2018.
Claims Settlement Efficiency Ratio =
Higher the Claims Settlement Efficiency Ratio,

RANK INSURER
EFFICIENCY RATIO FOR PROCESSING
1 New India 82.70% 5,188,801
4 United India 54.62% 9,088,964

RANK INSURER
2 Bajaj Allianz 80.88% 1,297,117
3 Tata AIG 78.44% 763,228
4 HDFC ERGO 77.55% 581,934
5 ICICI Lombard 77.02% 1,729,737
6 Reliance 74.55% 1,573,853
7 IFFCO Tokio 70.39% 916,696
8 SBI General 64.95% 186,804

RANK INSURER
3 Bharti AXA 74.20% 257,060
6 Magma HDI 57.10% 32,868
10
RANK INSURER
1 Max Bupa 87.86% 88,393
2 Religare Health 87.14% 252,494
3 Cigna TTK 84.69% 64,303
5 Star Health 78.82% 701,881
11
CLAIMS REPUDIATION RATIO
Claims Repudiation Ratio for the year ended March 31, 2018: The number of claims
repudiated and number of claims closed by the insurer out of the total number of claims
Lower the Claims Repudiation Ratio,

CLAIMS NO. OF CLAIMS AVAILABLE
RANK INSURER
REPUDIATION RATIO FOR PROCESSING
1 New India 1.47% 5,188,801
3 United India 5.77% 9,088,964

RANK INSURER
3 Reliance 6.65% 1,573,853
4 Bajaj Allianz 9.18% 1,297,117
5 IFFCO Tokio 10.18% 916,696
6 Tata AIG 10.34% 763,228
7 ICICI Lombard 10.74% 1,729,737
9 HDFC ERGO 11.09% 581,934
10 SBI General 16.27% 186,804

RANK INSURER
2 Bharti AXA 7.98% 257,060
5 Magma HDI 15.39% 32,868
12
CLAIMS REPUDIATION NO. OF CLAIMS AVAILABLE
RANK INSURER
3 Max Bupa 9.81% 88,393
5 Cigna TTK 13.77% 64,303
6 Star Health 16.49% 701,881
13
CLAIMS OUTSTANDING RATIO
Claims Outstanding Ratio for the year ended March 31, 2018: The number of claims that
were outstanding out of the total number of claims available for processing, i.e., the total
number of claims outstanding at the beginning of the quarter 1 + total number of claims
reported/booked during the quarters 1, 2, 3 and 4 of the financial year ended March 31,
2018.
Lower the Claims Outstanding Ratio,

RANK INSURER
OUTSTANDING RATIO FOR PROCESSING
1 New India 5.47% 5,188,801
3 United India 18.54% 9,088,964

RANK INSURER
1 Tata AIG 5.12% 763,228
2 Bajaj Allianz 7.53% 1,297,117
4 HDFC ERGO 8.97% 581,934
5 ICICI Lombard 9.71% 1,729,737
6 IFFCO Tokio 9.97% 916,696
7 SBI General 11.51% 186,804
8 Reliance 16.68% 1,573,853

RANK INSURER
4 Bharti AXA 11.28% 257,060
5 Magma HDI 18.81% 32,868
14
CLAIMS TOTAL CLAIMS AVAILABLE
RANK INSURER
1 Cigna TTK 1.41% 64,303
3 Max Bupa 2.25% 88,393
6 Star Health 4.50% 701,881
15
CLAIMS PENDENCY RATIO
Claims Pendency Ratio for the year ended March 31, 2018: The number of claims that were
pending for more than 1 year in the last quarter of the financial year ended March 31, 2018
out of the total number of claims available for processing, i. e., the total number of claims
outstanding at the beginning of the quarter 1 + total number of claims reported/ booked
during the quarters 1, 2, 3 and 4 of the financial year ended March 31, 2018.
Sum of Total number of claims outstanding for more than 1 year for the quarter ending March 31st, 2018
Lower the Claims Pendency Ratio,

better is an insurance company in terms of measured ratio
CLAIMS PENDENCY NO. OF CLAIMS AVAILABLE
RANK INSURER
2 United India 1.61% 9,088,964
3 New India 2.40% 5,188,801

RANK INSURER
1 Tata AIG 1.56% 763,228
2 SBI General 2.15% 186,804
3 ICICI Lombard 2.83% 1,729,737
4 HDFC ERGO 3.22% 581,934
6 Reliance 3.79% 1,573,853
7 Bajaj Allianz 3.83% 1,297,117
8 IFFCO Tokio 4.54% 916,696

RANK INSURER
5 Bharti AXA 4.90% 257,060
6 Magma HDI 8.96% 32,868
16
CLAIMS PENDENCY TOTAL CLAIMS AVAILABLE
RANK INSURER
Apollo Munich 0.00% 652,532
Cigna TTK 0.00% 64,303
1 Max Bupa 0.00% 88,393
Religare Health 0.00% 252,494
Aditya Birla Health 0.00% 76,318
2 Star Health 0.02% 701,881
17
FIRE: CLAIMS
SETTLEMENT EFFICIENCY RATIO

RANK INSURER
1 National Insurance 26.88% 5,785
2 Oriental Insurance 24.07% 9,191
3 United India 23.26% 13,171
4 New India 19.37% 12,361
RANK INSURER
1 ICICI Lombard 49.26% 6,435
2 HDFC ERGO 34.97% 2,880
5 SBI General 29.03% 4,140
6 Reliance 26.90% 2,621
7 Bajaj Allianz 20.32% 7,307
8 IFFCO Tokio 17.71% 2,564
10 Tata AIG 12.22% 3,396
RANK INSURER
1 Magma HDI 80.57% 803
2 Universal Sompo 18.50% 957
3 Shriram General 14.42% 208
4 Bharti AXA 10.37% 810
5 Kotak Mahindra General 8.89% 45
6 Liberty Videocon 4.35% 46
18
FIRE:

RANK INSURER
2 United India 8.06% 13,171
3 New India 10.24% 12,361
RANK INSURER
2 HDFC ERGO 1.42% 2,880
3 SBI General 4.15% 4,140
4 Tata AIG 5.15% 3,396
7 Reliance 15.30% 2,621
10 IFFCO Tokio 42.08% 2,564
RANK INSURER
2 Magma HDI 1.62% 803
6 Bharti AXA 29.38% 810
19
FIRE:

RANK INSURER
1 New India 72.19% 12,361
3 United India 58.44% 13,171
RANK INSURER
1 HDFC ERGO 58.96% 2,880
5 SBI General 49.93% 4,140
7 IFFCO Tokio 45.16% 2,564
9 Reliance 44.64% 2,621
10 Tata AIG 41.31% 3,396
RANK INSURER
1 Magma HDI 84.56% 803
2 Bharti AXA 45.31% 810
20
FIRE:

RANK INSURER
1 New India 5.50% 12,361
3 United India 10.48% 13,171
RANK INSURER
2 IFFCO Tokio 14.66% 2,564
5 Reliance 25.03% 2,621
6 HDFC ERGO 25.21% 2,880
8 SBI General 33.07% 4,140
9 Tata AIG 39.08% 3,396
RANK INSURER
2 Magma HDI 7.60% 803
3 Bharti AXA 7.78% 810
21
FIRE:
were outstanding out of the total number of claims available for processing, i. e., the total
2018.

CLAIMS OUTSTANDING NO. OF CLAIMS AVAILABLE
RANK INSURER
1 New India 22.30% 12,361
3 United India 31.08% 13,171
RANK INSURER
2 SBI General 16.84% 4,140
3 HDFC ERGO 18.85% 2,880
4 Tata AIG 19.61% 3,396
6 Reliance 30.33% 2,621
10 IFFCO Tokio 56.47% 2,564
RANK INSURER
1 Magma HDI 7.97% 803
5 Bharti AXA 47.41% 810
22
MARINE CARGO:

RANK INSURER
1 New India 55.07% 29,706
4 United India 43.90% 15,977
RANK INSURER
2 IFFCO Tokio 73.84% 20,194
4 HDFC ERGO 70.43% 17,291
6 Tata AIG 62.60% 36,478
9 Reliance 40.94% 6,800
10 Bharti AXA 32.71% 2,302
RANK INSURER
1 SBI General 72.30% 3,585
3 Magma HDI 52.23% 1,840
Kotak Mahindra General has not written any premium in Marine Cargo line of business during the period
23
MARINE CARGO:

RANK INSURER
2 New India 1.81% 29,706
3 United India 4.68% 15,977
RANK INSURER
2 HDFC ERGO 0.23% 17,291
3 Tata AIG 0.80% 36,478
5 IFFCO Tokio 1.81% 20,194
7 Reliance 3.78% 6,800
10 Bharti AXA 6.60% 2,302
RANK INSURER
4 Magma HDI 1.03% 1,840
24
MARINE CARGO:

RANK INSURER
1 New India 89.36% 29,706
3 United India 65.91% 15,977
RANK INSURER
1 IFFCO Tokio 94.96% 20,194
3 HDFC ERGO 80.41% 17,291
6 Tata AIG 69.95% 36,478
8 Bharti AXA 66.85% 2,302
10 Reliance 53.74% 6,800
RANK INSURER
1 SBI General 83.10% 3,585
3 Magma HDI 60.33% 1,840
25
MARINE CARGO:

RANK INSURER
1 New India 3.18% 29,706
3 United India 10.81% 15,977
RANK INSURER
2 Bharti AXA 10.86% 2,302
3 HDFC ERGO 12.74% 17,291
4 IFFCO Tokio 12.99% 20,194
9 Tata AIG 24.18% 36,478
10 Reliance 38.26% 6,800
RANK INSURER
1 SBI General 12.69% 3,585
4 Magma HDI 31.90% 1,840
26
MARINE CARGO:
2018.

RANK INSURER
1 New India 7.46% 29,706
3 United India 23.28% 15,977
RANK INSURER
2 Tata AIG 5.87% 36,478
3 IFFCO Tokio 6.75% 20,194
4 HDFC ERGO 7.23% 17,291
5 Reliance 8.00% 6,800
9 Bharti AXA 22.68% 2,302
RANK INSURER
3 Magma HDI 7.61% 1,840
27
MARINE HULL:

RANK INSURER
1 United India 28.55% 823
2 National Insurance 26.16% 302
3 Oriental Insurance 15.27% 419
4 New India 6.27% 558
PRIVATE SECTOR GENERAL INSURERS
RANK INSURER
1 IFFCO Tokio 4.82% 83
2 HDFC ERGO 2.86% 35
3 ICICI Lombard 1.16% 173
4 Bajaj Allianz 0.00% 18
5 Reliance 0.00% 29
6 Royal Sundaram 0.00% 5
Only the insurers mentioned above had business written in the Marine Hull line of business
28
MARINE HULL:

RANK INSURER
3 New India 29.21% 558
RANK INSURER
2 Reliance 6.90% 29
3 HDFC ERGO 14.29% 35
29
MARINE HULL:

RANK INSURER
2 New India 49.10% 558
RANK INSURER
2 HDFC ERGO 34.29% 35
5 Reliance 6.90% 29
30
MARINE HULL:

RANK INSURER
1 New India 3.76% 558
RANK INSURER
5 HDFC ERGO 17.14% 35
6 Reliance 37.93% 29
Only the insurers mentioned above had business written in the Marine Hull line of business.
31
MARINE HULL:
were outstanding out of the total number of claims available for processing,
i. e., the total number of claims outstanding at the beginning of the quarter 1 + total number
of claims reported/booked during the quarters 1, 2, 3 and 4 of the financial year ended
March 31, 2018.

RANK INSURER
2 New India 47.13% 558
RANK INSURER
3 HDFC ERGO 48.57% 35
4 Reliance 55.17% 29
32
MOTOR OD:

RANK INSURER
1 United India 75.07% 709,924
2 New India 74.30% 985,126
RANK INSURER
3 HDFC ERGO 86.28% 296,302
4 Tata AIG 86.15% 596,637
5 IFFCO Tokio 85.42% 436,362
6 ICICI Lombard 85.27% 1,025,998
7 Bharti AXA 83.24% 205,787
9 Reliance 77.62% 243,346
RANK INSURER
4 SBI General 80.87% 114,520
6 Magma HDI 74.21% 22,051
33
MOTOR OD:

RANK INSURER
2 New India 0.26% 985,126
3 United India 0.54% 709,924
RANK INSURER
1 ICICI Lombard 0.00% 1,025,998
3 Tata AIG 0.14% 596,637
4 HDFC ERGO 0.17% 296,302
5 IFFCO Tokio 0.34% 436,362
8 Bharti AXA 0.47% 205,787
9 Reliance 0.76% 243,346
RANK INSURER
4 SBI General 0.26% 114,520
6 Magma HDI 0.87% 22,051
34
MOTOR OD:

RANK INSURER
1 New India 93.96% 985,126
3 United India 85.37% 709,924
RANK INSURER
1 IFFCO Tokio 96.52% 436,362
3 Tata AIG 91.52% 596,637
5 HDFC ERGO 89.23% 296,302
6 Bharti AXA 88.54% 205,787
7 ICICI Lombard 87.65% 1,025,998
9 Reliance 82.93% 243,346
RANK INSURER
3 SBI General 88.76% 114,520
6 Magma HDI 77.89% 22,051
35
MOTOR OD:

RANK INSURER
1 New India 0.38% 985,126
2 United India 1.49% 709,924
RANK INSURER
2 Tata AIG 5.88% 596,637
3 HDFC ERGO 7.24% 296,302
4 Bharti AXA 7.48% 205,787
5 IFFCO Tokio 7.60% 436,362
6 ICICI Lombard 7.80% 1,025,998
9 Reliance 11.15% 243,346
RANK INSURER
1 SBI General 5.97% 114,520
6 Magma HDI 16.22% 22,051
36
MOTOR OD:
2018.

RANK INSURER
1 New India 5.67% 985,126
3 United India 13.14% 709,924
RANK INSURER
3 Tata AIG 2.59% 596,637
4 IFFCO Tokio 3.94% 436,362
5 HDFC ERGO 4.54% 296,302
6 ICICI Lombard 4.55% 1,025,998
8 Bharti AXA 5.26% 205,787
9 Reliance 5.91% 243,346
RANK INSURER
5 SBI General 5.27% 114,520
6 Magma HDI 5.90% 22,051
37
MOTOR TP:

RANK INSURER
3 United India 7.78% 269,364
4 New India 5.07% 247,828
RANK INSURER
2 Tata AIG 4.04% 23,488
3 Bharti AXA 3.47% 20,534
4 IFFCO Tokio 3.15% 56,942
5 HDFC ERGO 2.97% 34,517
9 Reliance 0.64% 86,060
RANK INSURER
2 Magma HDI 2.22% 6,796
4 SBI General 1.24% 10,535
38
MOTOR TP:

RANK INSURER
2 United India 40.14% 269,364
3 New India 45.83% 247,828
RANK INSURER
2 Tata AIG 41.49% 23,488
4 IFFCO Tokio 42.77% 56,942
6 HDFC ERGO 50.55% 34,517
8 Bharti AXA 53.16% 20,534
9 Reliance 60.99% 86,060
RANK INSURER
2 SBI General 31.37% 10,535
4 Magma HDI 39.83% 6,796
39
MOTOR TP:

RANK INSURER
2 New India 40.08% 247,828
3 United India 25.24% 269,364
RANK INSURER
1 IFFCO Tokio 36.83% 56,942
2 Bharti AXA 36.05% 20,534
6 Tata AIG 26.37% 23,488
7 HDFC ERGO 23.27% 34,517
9 Reliance 18.32% 86,060
RANK INSURER
1 Magma HDI 27.56% 6,796
2 SBI General 26.99% 10,535
40
MOTOR TP:

RANK INSURER
1 New India 0.46% 247,828
4 United India 10.16% 269,364
RANK INSURER
1 IFFCO Tokio 0.00% 56,942
3 Bharti AXA 2.74% 20,534
5 Reliance 6.35% 86,060
9 HDFC ERGO 10.94% 34,517
10 Tata AIG 11.65% 23,488
CLAIMS REPUDIATION NO. OF CLAIMS AVAILABLE
RANK INSURER
4 Magma HDI 4.71% 6,796
6 SBI General 6.45% 10,535
41
MOTOR TP:
2018.

RANK INSURER
2 New India 59.46% 247,828
3 United India 64.60% 269,364
RANK INSURER
2 Tata AIG 61.98% 23,488
5 IFFCO Tokio 65.73% 56,942
7 Bharti AXA 71.36% 20,534
8 Reliance 75.33% 86,060
9 HDFC ERGO 75.83% 34,517
RANK INSURER
1 SBI General 66.58% 10,535
2 Magma HDI 67.73% 6,796
42
HEALTH: CLAIMS
SETTLEMENT EFFICIENCY RATIO

RANK INSURER
2 New India 91.89% 3,754,792
4 United India 68.14% 5,193,479
RANK INSURER
4 HDFC ERGO 81.42% 108,590
6 Reliance 75.56% 985,170
7 Tata AIG 66.97% 33,392
8 IFFCO Tokio 64.69% 367,972
9 SBI General 50.00% 40,960
RANK INSURER
2 Bharti AXA 73.34% 22,322
5 Magma HDI 0.00% 15
Shriram General reported Nil claims available for processing in Health during the period.
43
RANK INSURER
1 Max Bupa 87.97% 88,267
3 Cigna TTK 84.78% 64,186
5 Star Health 79.17% 695,784
44
HEALTH:

RANK INSURER
1 New India 0.03% 3,754,792
4 United India 0.54% 5,193,479
RANK INSURER
1 HDFC ERGO 0.00% 108,590
2 Reliance 0.05% 985,170
4 SBI General 0.12% 40,960
6 Tata AIG 0.23% 33,392
9 IFFCO Tokio 3.41% 367,972
RANK INSURER
5 Bharti AXA 0.53% 22,322
45
RANK INSURER
2 Cigna TTK 0.00% 64,186
3 Max Bupa 0.00% 88,267
6 Star Health 0.01% 695,784
Apollo Munich, Aditya Birla Health, Max Bupa, Cigna TTK and Religare Health have nil claims
outstanding for more than one year.
46
HEALTH:

RANK INSURER
1 New India 96.61% 3,754,792
3 United India 80.69% 5,193,479
RANK INSURER
2 IFFCO Tokio 92.88% 367,972
4 HDFC ERGO 82.99% 108,590
7 Reliance 75.76% 985,170
8 Tata AIG 69.96% 33,392
9 SBI General 50.12% 40,960
RANK INSURER
1 Bharti AXA 77.78% 22,322
47

RANK INSURER

2 Max Bupa 88.06% 88,267
4 Cigna TTK 84.91% 64,186
6 Star Health 79.34% 695,784
48
HEALTH:

RANK INSURER
1 New India 1.77% 3,754,792
3 United India 9.04% 5,193,479
RANK INSURER
3 Reliance 6.48% 985,170
6 HDFC ERGO 13.41% 108,590
7 IFFCO Tokio 13.86% 367,972
9 Tata AIG 24.33% 33,392
10 SBI General 40.89% 40,960
RANK INSURER
1 Bharti AXA 10.77% 22,322
4 Magma HDI 33.33% 15
49
RANK INSURER
3 Max Bupa 9.69% 88,267
5 Cigna TTK 13.71% 64,186
6 Star Health 16.24% 695,784
50
HEALTH:
2018.

RANK INSURER
1 New India 1.62% 3,754,792
3 United India 10.27% 5,193,479
RANK INSURER
2 HDFC ERGO 4.42% 108,590
4 Tata AIG 5.71% 33,392
5 IFFCO Tokio 7.50% 367,972
7 SBI General 8.98% 40,960
9 Reliance 17.76% 985,170
RANK INSURER
3 Bharti AXA 7.16% 22,322
5 Magma HDI 66.67% 15
51
RANK INSURER
1 Cigna TTK 1.38% 64,186
3 Max Bupa 2.24% 88,267
6 Star Health 4.42% 695,784
52
MISCELLANEOUS:

RANK INSURER
3 New India 48.89% 158,430
4 United India 29.83% 2,886,226
RANK INSURER
1 Reliance 94.48% 249,827
2 HDFC ERGO 76.02% 122,319
5 Tata AIG 54.57% 69,837
6 IFFCO Tokio 53.02% 32,579
10 SBI General 33.10% 13,064
RANK INSURER
1 Magma HDI 47.25% 1,363
3 Bharti AXA 28.69% 5,305
6 Raheja QBE 4.52% 354
53
RANK INSURER
3 Cigna TTK 38.46% 117
4 Star Health 38.15% 6,097
5 Aditya Birla Health 22.22% 117
6 Max Bupa 11.90% 126
54
MISCELLANEOUS:

RANK INSURER
1 United India 0.17% 2,886,226
3 New India 3.24% 158,430
RANK INSURER
1 HDFC ERGO 0.58% 122,319
2 Tata AIG 1.10% 69,837
3 SBI General 1.42% 13,064
4 Reliance 1.71% 249,827
10 IFFCO Tokio 5.46% 32,579
RANK INSURER
3 Magma HDI 0.95% 1,363
5 Bharti AXA 3.86% 5,305
7 Raheja QBE 15.54% 354
55
RANK INSURER
2 Cigna TTK 0.00% 117
3 Max Bupa 0.00% 126
6 Star Health 1.36% 6,097
56
MISCELLANEOUS:

RANK INSURER
2 New India 88.80% 158,430
4 United India 69.16% 2,886,226
RANK INSURER
1 Reliance 95.26% 249,827
2 IFFCO Tokio 83.02% 32,579
3 HDFC ERGO 77.40% 122,319
6 Tata AIG 61.19% 69,837
10 SBI General 37.16% 13,064
RANK INSURER
1 Raheja QBE 66.10% 354
2 Magma HDI 57.67% 1,363
3 Bharti AXA 48.37% 5,305
57
RANK INSURER
3 Star Health 40.46% 6,097
4 Cigna TTK 38.46% 117
6 Max Bupa 11.90% 126
58
MISCELLANEOUS:

RANK INSURER
1 United India 0.48% 2,886,226
2 New India 1.88% 158,430
RANK INSURER
1 Reliance 1.96% 249,827
2 HDFC ERGO 17.85% 122,319
3 IFFCO Tokio 18.96% 32,579
7 Tata AIG 32.70% 69,837
8 SBI General 32.90% 13,064
RANK INSURER
1 Raheja QBE (1.69%) 354
5 Bharti AXA 34.61% 5,305
6 Magma HDI 37.34% 1,363
59
RANK INSURER
4 Star Health 45.20% 6,097
5 Cigna TTK 47.01% 117
6 Max Bupa 91.27% 126
60
MISCELLANEOUS:
2018.

RANK INSURER
2 New India 9.35% 158,430
4 United India 30.36% 2,886,226
RANK INSURER
1 Reliance 2.79% 249,827
2 HDFC ERGO 4.87% 122,319
3 Tata AIG 6.17% 69,837
7 IFFCO Tokio 19.38% 32,579
10 SBI General 30.04% 13,064
RANK INSURER
1 Magma HDI 4.77% 1,363
3 Bharti AXA 18.87% 5,305
5 Raheja QBE 50.85% 354
61
RANK INSURER
1 Max Bupa 3.97% 126
4 Star Health 14.33% 6,097
5 Cigna TTK 14.53% 117
62
WHY AVAIL OF AN INSURANCE BROKER?
Insurance brokers are the only insurance distribution channel which represents the
policyholders. As is the case with other countries, the concept of an Insurance Broker
was introduced by the Insurance Regulatory & Development Authority of India (IRDAI)
through the IRDA (Insurance Brokers) Regulations, 2002 and amended in 2013. These
regulations define the functions and the code of conduct of an Insurance Broker.
• Some insurance policies can be complicated, and an insurance broker can help a
policyholder understand the details of a policy and also work out what the level of
cover needed to ensure that the policyholder’s interest is well-protected.
• Brokers can often find you a good deal on insurance because they have a thorough
understanding of the insurance market and can negotiate premiums on your behalf.
• A broker will explain the insurance policy and advise the policyholder on any special
situations that they need to know about.
• Brokers can prepare a customized insurance and risk management program for a
policyholder and his/her business, where they design the policies, negotiate the
terms with insurance companies and place the cover with the insurer.
• By including a risk management program, some of the responsibility for risk

prevention and loss minimization for the policyholder or their business through
reduction of premium costs.
• The cost of availing of an insurance broker is not lower than going directly to an
insurer since the insurance broker’s fees are borne by the insurer.
• In case of a claim on the policy, an insurance broker will assist the policyholder
through the process and will liaise with the insurer on their behalf.
88
63
SOURCES AND LIMITATIONS OF CONSIDERED DATA
I. Sources of Data:
a. Claims related data is taken from respective public disclosures of Insurance

companies from their respective websites for the quarters 1, 2, 3 and 4 of the year
ended March 31, 2018. These disclosures include the following:
i. NL 24 (Ageing of Claims): It includes data on how claims have been paid over
various time periods. Here, the data for Claims Paid in 0-1 month has been
clubbed with the data for 1-3 months to arrive at 0-3 months data.
ii. NL 25 (Claims Data): It includes data on ageing of outstanding claims over

various time periods.
b. For the above mentioned disclosures, the Miscellaneous line of business have been
clubbed together as:
Miscellaneous: Engineering, Aviation, Liability, Credit Insurance, Personal Accident,

Travel, Crop & Other Miscellaneous Insurance.
c. Solvency Ratio data is sourced from NL33 published on insurer’s website as on

March 31, 2018.
d. The gross premium written by the insurers in each line of business has been
calculated from the data disclosed by the insurance company on their website in
the NL 26 disclosure for the quarter ended March 31, 2018.
e. For National Insurance, Quarter 4 NL 24 and NL 25 were not available on the

insurer’s website. Thus, data from NL 24 and NL 25 for quarters 1, 2 and 3 was
considered for National Insurance.
f. The data considered only refers to the number of claims and not claim amount.
Corresponding data on claim amount is not available in the public domain for the
Indian insurance market.
g. There is a discrepancy in the data for claims outstanding at the beginning of the
quarter for the following insurers:
i. Apollo Munich Health Insurance Co. Ltd.

ii. Aditya Birla Health Insurance Co. Ltd.
iii. HDFC Ergo General Insurance Co. Ltd.
iv. Max Bupa Health Insurance Co. Ltd.
h. For the following general insurance companies, the total claims available for
processing (i. e., sum of total claims reported during the quarter and total claims
outstanding at the beginning of the quarter) is not equal to the sum of total claims
paid, total claims closed (if applicable), total claims repudiated and total claims
outstanding at the end of the quarter:
64
i. The Oriental Insurance Co. Ltd.
ii. IFFCO Tokio General Insurance Co. Ltd.
iii. Future Generali India Insurance Co. Ltd.
iv. Bajaj Allianz General Insurance Co. Ltd.
v. Royal Sundaram General Insurance Co. Ltd.
vi. Raheja QBE General Insurance Co. Ltd.
vii. Bharti AXA General Insurance Co. Ltd.
viii. Magma HDI General Insurance Co. Ltd.
II. Limitations:
a. L&T General Insurance: The Company now has been acquired and no more accepting new
proposals.
b. DHFL General Insurance, Go Digit, Ede lweiss and Acko: The Insurers were not
incorporated in the period for which claims data is taken.
c. For IFFCO Tokio and Universal Sompo, Quarter 4 NL 24 and NL 25 are for full year period
i. e., from April 01, 2017 to March 31, 2018.
d. Standalone / Specialized Insurers: Following specialized insurers are not considered for
evaluation:
i. Agriculture Insurance Corporation of India
ii. Export Credit Guarantee Corporation of India
e. Raheja QBE is rated only in the Miscellaneous line of business because their business is
largely in liability insurance which has long-tail claims.
f. Disclaimer shared by Raheja QBE:
Approximately 90% of Raheja QBE's book constitutes of the Long-tail class. It is generally
the other way round for the rest of the Indian non-life market. RQBE is an outlier. Raheja
QBE's book of business is predominantly the liability segment or long tail class.
i. The long tail claims develop slowly and the matrix used to measure short tail
(motor, health and property which constitute over 80% of the Indian market
portfolio) claims pendency do not always apply to long tail class.
ii. The liability for claims that do not proceed to final settlement until a length of
time beyond the policy year. High incurred but not reported (IBNR) claims
contribute to this "tail" effect, since these losses are usually not settled until
several years after the expiration of the policy in question.
65
GLOSSARY
The companies analyzed in this handbook are mentioned by the short nomenclature
that they are popularly known by. The full names of the companies are given below
as a glossary:

1 United India United India Insurance Co. Ltd.
2 Oriental Insurance The Oriental Insurance Co. Ltd.
3 National National Insurance Co. Ltd.
4 New India The New India Assurance Co. Ltd.

1 Universal Sompo Universal Sompo General Insurance Co. Ltd.
2 Tata AIG TATA AIG General Insurance Co. Ltd.
3 ICICI Lombard ICICI Lombard General Insurance Co. Ltd.
4 Future Generali Future Generali India Insurance Co. Ltd.
5 HDFC ERGO HDFC Ergo General Insurance Co. Ltd.
6 Bajaj Allianz Bajaj Allianz General Insurance Co. Ltd.
7 SBI General SBI General Insurance Co. Ltd.
8 Cholamandalam MS Cholamandalam MS General Insurance Co. Ltd.
9 IFFCO Tokio IFFCO Tokio General Insurance Co. Ltd.
10 Reliance General Reliance General Insurance Co. Ltd.
11 Magma HDI Magma HDI General Insurance Co. Ltd.
12 Liberty Videocon Liberty Videocon General Insurance Co. Ltd.
13 Bharti AXA Bharti AXA General Insurance Co. Ltd.
14 Shriram General Shriram General Insurance Co. td.
15 Royal Sundaram Royal Sundaram General Insurance Co. Ltd.
16 Raheja QBE Raheja QBE General Insurance Co. Ltd.
17 Kotak Mahindra General Kotak Mahindra General Insurance Co. Ltd.

1 Apollo Munich Apollo Munich Health Insurance Co. Ltd.
2 Cigna TTK CignaTTK Health Insurance Co.Ltd.
3 Max Bupa Max Bupa Health Insurance Co. Ltd.
4 Religare Health Religare Health Insurance Co. Ltd.
5 Star Health Health and Allied Insurance Co. Ltd.
6 Aditya Birla Health Aditya Birla Health Insurance Co. Ltd.
57
66
DISCLAIMER
This handbook is intended to provide general information only and is not exhaustive.
It is a policyholder awareness and education initiative and does not seek to give you
any legal advice.
The IRDAI does not subscribe to nor does it approve the ratios that have been
worked out to rate the insurance companies. The IRDAI also does not validate or
approve the meanings drawn from the ratios. This is purely an IBAI effort with no
IRDAI involvement.
No information given herein replaces or overrides the terms and conditions of an

insurance policy.
Please approach a duly licensed insurance broker or an insurance company

registered with IRDAI for specific information regarding a policy or for any other
additional information.
58
67
INSURANCE BROKERS ASSOCIATION OF INDIA
A - Z Industrial Premises Co-Op Soc. Ltd., 1st Floor, Unit No. 165,
G. K. Marg, Lower Parel, Mumbai - 400 013
Tel. No.: 022 - 22846544 | Email: ibai@ibai.org | Web: http://ibai.org

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INSURANCE BROKERS ASSOCIATION OF INDIA

ABOUT THE HANDBOOK 4

ABOUT INSURANCE BROKERS 4

ABOUT INSURANCE BROKERS ASSOCIATION OF INDIA 4

OVERALL INSURERS’ COMPARISON: SOLVENCY RATIO 7

OVERALL INSURERS’ COMPARISON: CLAIMS SETTLEMENT RATIO 8

OVERALL INSURERS’ COMPARISON: CLAIMS SETTLEMENT EFFICIENCY RATIO 10

OVERALL INSURERS’ COMPARISON: CLAIMS REPUDIATION RATIO 12

OVERALL INSURERS’ COMPARISON: CLAIMS OUTSTANDING RATIO 14

OVERALL INSURERS’ COMPARISON: CLAIMS PENDENCY RATIO 16

FIRE: CLAIMS SETTLEMENT EFFICIENCY RATIO 18

FIRE: CLAIMS PENDENCY RATIO 19

FIRE: CLAIMS SETTLEMENT RATIO 20

FIRE: CLAIMS REPUDIATION RATIO 21

FIRE: CLAIMS OUTSTANDING RATIO 22

MARINE CARGO: CLAIMS SETTLEMENT EFFICIENCY RATIO 23

MARINE CARGO: CLAIMS PENDENCY RATIO 24

MARINE CARGO: CLAIMS SETTLEMENT RATIO 25

MARINE CARGO: CLAIMS REPUDIATION RATIO 26

MARINE CARGO: CLAIMS OUTSTANDING RATIO 27

MARINE HULL: CLAIMS SETTLEMENT EFFICIENCY RATIO 28

MARINE HULL: CLAIMS PENDENCY RATIO 29

MARINE HULL: CLAIMS SETTLEMENT RATIO 30

MARINE HULL: CLAIMS REPUDIATION RATIO 31

MARINE HULL: CLAIMS OUTSTANDING RATIO 32

MOTOR OD: CLAIMS SETTLEMENT EFFICIENCY RATIO 33

MOTOR OD: CLAIMS PENDENCY RATIO 34

MOTOR OD: CLAIMS SETTLEMENT RATIO 35

MOTOR OD: CLAIMS REPUDIATION RATIO 36

MOTOR OD: CLAIMS OUTSTANDING RATIO 37

MOTOR TP: CLAIMS SETTLEMENT EFFICIENCY RATIO 38

MOTOR TP: CLAIMS PENDENCY RATIO 39

MOTOR TP: CLAIMS SETTLEMENT RATIO 40

MOTOR TP: CLAIMS REPUDIATION RATIO 41

MOTOR TP: CLAIMS OUTSTANDING RATIO 42

HEALTH: CLAIMS SETTLEMENT EFFICIENCY RATIO 43

HEALTH: CLAIMS PENDENCY RATIO 45

HEALTH: CLAIMS SETTLEMENT RATIO 47

HEALTH: CLAIMS REPUDIATION RATIO 49

HEALTH: CLAIMS OUTSTANDING RATIO 51

MISCELLANEOUS: CLAIMS SETTLEMENT EFFICIENCY RATIO 53

MISCELLANEOUS: CLAIMS PENDENCY RATIO 55

MISCELLANEOUS: CLAIMS SETTLEMENT RATIO 57

MISCELLANEOUS: CLAIMS REPUDIATION RATIO 59

MISCELLANEOUS: CLAIMS OUTSTANDING RATIO 61

WHY AVAIL OF AN INSURANCE BROKER? 63

SOURCES AND LIMITATIONS OF CONSIDERED DATA 64

ABOUT INSURANCE BROKERS

ABOUT INSURANCE BROKERS ASSOCIATION OF INDIA

2. Claims Settlement Efﬁciency Ratio

3. Claims Pendency Ratio

4. Claims Settlement Ratio

5. Claims Repudiation Ratio

6. Claims Outstanding Ratio

i. Public Sector General Insurers

PUBLIC SECTOR GENERAL INSURERS

LARGE PRIVATE SECTOR GENERAL INSURERS

SMALL PRIVATE SECTOR GENERAL INSURERS

STANDALONE HEALTH INSURERS

Higher the Claims Settlement Ratio,

LARGE PRIVATE SECTOR GENERAL INSURERS

SMALL PRIVATE SECTOR GENERAL INSURERS

Higher the Claims Settlement Efficiency Ratio,

LARGE PRIVATE SECTOR GENERAL INSURERS