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Insurers Settle Record Claims Amid Falling Payouts
5 Jan
Summary
- Insurers settled a record 32.6 million health claims in FY25.
- Average claim payout decreased to ₹28,910 from ₹31,086.
- Cashless claim settlement dominance continued at 66.35%.
In the fiscal year 2025, India's non-life and health insurers processed an unprecedented number of claims, marking a significant achievement in claim settlement efficiency. The data indicates that approximately 32.6 million claims were settled, representing about 87% of those registered during the period, a notable rise from the 83% settlement ratio in FY24.
This surge in settlements was accompanied by a decrease in the average payout per claim, which fell to ₹28,910 from ₹31,086 in the prior year. This reduction is attributed to a broader expansion of health insurance coverage and increased utilization of cashless treatment options, leading to a larger proportion of lower-ticket claims. Cashless settlements continued to be the preferred method, constituting 66.35% of the total claim amount.
The regulatory push from IRDAI has been instrumental in driving these improvements, encouraging faster and more transparent claim processing. Mandates for 100% cashless claim processing with strict timelines, alongside tightened governance around claim rejections, are transforming the insurance landscape towards greater consumer benefit and operational excellence.
