Claim Settlement Ratio: Life Insurance Claim Settlement Ratio in UAE 2025

Life insurance claim settlement ratio represents the portion of claims that an insurance company successfully settles in proportion to the total claims received in a financial year. A higher ratio reflects the insurer’s efficiency, transparency, and commitment to fulfilling their promises.

For you, as a policyholder, this number is crucial as it can help you choose a company that is more likely to honour your life insurance claims when needed most. Whether you’re buying a life policy for the first time or reviewing your current policy, understanding the claim settlement ratio can help you make informed decisions and ensure financial security for your loved ones in case of unforeseen events.

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What is the Claim Settlement Ratio in Life Insurance?

The Claim Settlement Ratio (CSR), as mentioned earlier, is the portion of total life insurance claims that an insurer settles in a given financial year. A high CSR shows the insurer is dependable and efficient in paying claims — this gives policyholders confidence that their loved ones will receive the promised benefits without hassle.

For instance, if a life insurance company has a CSR of 85%, it means out of 100 death claims received (including any pending from the previous year), it has paid out 85 claims. This indicates the insurer's reliability in fulfilling its obligations.

Choosing an insurance provider with one of the best claim settlement ratios ensures better chances that your family will receive timely financial support in case of your untimely death, helping them manage expenses during difficult times.

Importance of Claim Settlement Ratio

The Claim Settlement Ratio (CSR) is a key factor when choosing a life coverage provider. A high CSR means the company has successfully paid most of the claims it received, which shows its reliability and commitment to policyholders.

Here are the main advantages of choosing an insurer with a high life insurance claim settlement ratio —

Better Financial Security

A high CSR increases the chances that your family will receive the sum assured quickly in case of your death.

Trustworthy Insurer

A high CSR reflects the insurer’s dependability. You can feel confident that your loved ones will not face issues during the claim process, especially if all required documents are submitted on time.

Smooth Claim Process

Insurers with high CSRs tend to have a transparent and user-friendly claim process. This ensures that your family doesn’t have to go through hassles and complex procedures when facing unfortunate circumstances.

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How to Calculate the Claim Ratio of Life Insurance in UAE?

Calculating the claim settlement ratio (CSR) is fairly easy. Here's the formula —

Claim Settlement Ratio (CSR) = (Claims Settled / Total Claims Received) × 100

For instance, if a life insurance company receives 10,000 claims in a year and settles 9600 of them, the calculation would be:

CSR = (9600 ÷ 10,000) × 100 = 96.0%

This means the insurer successfully settles 96.0% of the claims, showing its reliability. A high CSR gives policyholders confidence that their claims are likely to be paid without any issue.

Types of Life Insurance Claims

Life policies offer two types of claims: maturity claims and death claims.

Maturity Claims	Death Claims
Maturity claims are paid when the policy reaches its end date. The payout can be either fixed or linked to market performance, depending on the type of policy. Plans like ULIPs, endowment plans, savings plans, and retirement policies offer maturity benefits. Once the policy term ends, you can receive a lump sum by submitting the required documents to the insurer.	Death claims are paid to the beneficiary in case the life assured passes away during the policy tenure. The payout can be a lump sum or regular income, based on the policyholder’s choice. To process the claim, the nominee must submit documents such as the death certificate, doctor’s report, and other proof. This benefit helps support the family financially in the policyholder’s absence.

What is the Ideal Claim Settlement Ratio in Life Insurance?

There isn’t a fixed number that defines a ‘good’ Claim Settlement Ratio (CSR) — the idea usually is to go for the company with the highest ratio. However, most people prefer insurance companies with a CSR above 90%. Here’s why —

Shows Reliability – A CSR over 90% means the insurer settles most claims, which builds trust
Helps You Decide Better – It gives a clear idea of how likely the company is to pay claims, helping you choose the right policy
Indicates Stability – A high CSR also reflects the financial strength and stability of the insurer, showing they can handle claims efficiently

Choosing an insurer with a high CSR increases your chances of a smooth and successful claim process.

What Affects Your Life Insurance Claim Settlement?

Having discussed the Claim Settlement Ratio (CSR) of insurance companies, it’s worth mentioning that even if you choose an insurer with a high CSR, your claim can be rejected. To avoid such rejections, here’s what you need to keep in mind when filing a claim —

Reason for Claim Rejection	Description
Incomplete or Incorrect Information	Not disclosing important details like medical history or existing health conditions can lead to claim rejection. Insurance companies depend on accurate information to evaluate claims. If key facts are hidden or missing, the insurer may delay or deny the claim.
Fraudulent Declarations	If a policyholder knowingly gives false information to mislead the insurer, it is considered fraud. If the insurance company finds the claim suspicious or dishonest, it can reject it.
Neglecting Policyholder Responsibilities	Policyholders are expected to understand the terms of the policy. This includes paying premiums on time and honestly submitting complete details when filing a claim. Ignoring these duties can result i