Also make a note that almost all new companies tend to have a high claim-rejection ratio. As companies get older they look for of non-early claims, and thus their overall rejection ratio seems to be lower.

In addition to that, insurers are not allowed to reject claims citing non-disclosure of facts, if the policy has been in force for more than two years.

 However, do not stop at just examining the claim-settlement record. A company’s claim settlement ratio will let you know how much time they take to settle claims.

LIC’s claim pending ratio was 15.47 percent, which is higher when compared to other private insurers' claim-pending ratio which stood at 7.68 percent according to IRDA data.

 A high claim pending ratio means the company is inefficient in processing claims. As per guidelines, all claims should be decided within six months.

An insurance company is considered to be better if it has no too many claims pending for more than three months.