Road accidents rise but Ambani’s Reliance at 10.3 % rejection among worst companies: IBAI report

A report has said that India’s richest business group Reliance is among the companies that is rejecting most number of motor insurance claims

| Updated: 27 December, 2024 1:29 pm IST

Road accidents rise but Ambani's Reliance at 10.3 % rejection among worst companies: IBAI report

The report has been prepared by the Insurance Brokers Association of India (IBAI)

NEW DELHI: With road accidents on the rise in India — India recorded 4,61,312 incidents in 2022 with an increase of over 40,000 from the previous year— along with Union transport minister Nitin Gadkari talking about this is an embarassment, a report has said that India’s richest business group Reliance is among the companies that is rejecting most number of motor insurance claims.

A screen grab of the IBAI Annual Report 2022-23, showing the percentage of motor claims rejected by both private and public insurance companies in India.

While Reliance General, from the house of Ambanis, saw a repudiation rate of 10.34%, Navi General reported the repudiation rate of 15.5%.

The two insurance companies together appear at the bottom of the list in number of claims rejected in India for 2022-23 (the company with most rejections is placed at the bottom). Reliance received 3.8 lakh claims while Navi General received 4,000 claims

A screen grab of the IBAI Annual Report 2022-23, showing the percentage of motor claims settled by both private and public insurance companies in India.

The report has been prepared by the Insurance Brokers Association of India (IBAI).

A screen grab of the IBAI Annual Report 2022-23, showing the percentage of motor claims settled by small private insurance companies in India.

The silver lining in the same report, however, is that one insurer from the public sector and three from the private sector have appeared in the list with more than 90% of settlement rates.

Among public sector insurers, New India Motor Assurance topped the chart with a claim settlement rate of 92.43%. New India received 12 lakh claims while 11.04 lakh were settled by the company.

In the private sector, Royal Sundaram, Go Digit, and SBI General Insurance have emerged as leaders, boasting claim clearance rates of 91.56%, 90.72%, and 90.15%, resulting in 2.73 lakh, 3.6 lakh and 3.15 lakh claims settled by them each.

The report also highlighted the claim repudiation ratios (the percentage of claims rejected) for these private insurers. Royal Sundaram, Go Digit, and SBI General have maintained low rejection rates between 6% and 6.5%

Meanwhile, IFFCO Tokio, another major private player, recorded the lowest repudiation rate at 5.79 %. It had processed 5.4 lakh claims.

For public sector insurers, New India Assurance stood out again with an impressive repudiation rate of just 0.45%. It processed 12 lakh claims.

The data was compiled by IBAI based on disclosures mandated by the Insurance Regulatory and Development Authority of India (IRDAI). This transparency enables consumers to make informed decisions by assessing the track record of insurance providers.

Overall India processed at least 1.04 crore claims by motor insurance companies.