Acko Settles 99.98% of Claims. Kshema Settles 26.88%. Here Is Every Insurer Ranked — With the Three Ratios That Actually Matter.
Every comparison site shows you one number: Claim Settlement Ratio. HDFC ERGO at 100%. Bajaj Allianz at 98%. All looking great.
They never show you the second number: Incurred Claim Ratio — how much the insurer actually pays out per rupee of premium collected. Private insurers pay 62-87 paise per rupee. Public insurers pay 90-99 paise.
And they definitely never show you the third number: the gap between Disposal Ratio and Settlement Ratio — which tells you how many claims an insurer processes fast but denies.
This page uses IRDAI’s own data to rank every motor insurer across all three metrics. No affiliate commissions decide these rankings.
The Three Ratios Explained — And Why You Need All Three
1. Claim Settlement Ratio (CSR)
What it measures: Number of claims settled as a percentage of total claims filed.
What it hides: A ₹2 lakh claim settled for ₹80,000 still counts as “settled.” CSR does not track the amount paid versus the amount claimed.
2. Incurred Claim Ratio (ICR)
What it measures: Total rupees paid in claims as a percentage of total premiums earned.
What it reveals: An ICR of 98% means the insurer pays ₹98 in claims for every ₹100 of premium. An ICR of 68% means it keeps ₹32. Higher ICR = better for you as a policyholder.
3. Disposal Ratio vs. Settlement Ratio Gap
What it measures: Disposal ratio = claims resolved (settled + denied + closed). Settlement ratio = claims actually paid. The gap = claims the insurer denied or closed without payment.
What it reveals: A 13% gap means 13 out of every 100 claims were “processed” but not paid. The wider the gap, the more aggressive the insurer is at denying claims.
Most comparison sites show only CSR. This is like judging a restaurant by how many orders it takes — not how many meals it actually serves. For a similar breakdown in life insurance, see CSR vs ASR — the metric that tells if your term insurer will actually pay.
Every Insurer Ranked: Claim Settlement Ratio (FY 2024-25)
IRDAI publishes claims settled within 3 months as the primary CSR metric. Here is the complete ranking.
Private Sector General Insurers
| Rank | Insurer | CSR (3-Month) | Verdict |
|---|---|---|---|
| 1 | Acko General Insurance | 99.98% | Near-perfect. Digital-first model minimises processing delays |
| 2 | Reliance General Insurance | 99.32% | Consistent top-tier performer |
| 3 | HDFC ERGO General Insurance | 98.85% | High CSR but ICR tells a different story (see below) |
| 4 | ICICI Lombard General Insurance | 98.45% | Large book, reliable settlement |
| 5 | Bajaj Allianz General Insurance | ~98% | One of the most profitable — retains more per rupee |
| 6 | SBI General Insurance | ~98% | Largest cashless network (16,000+ garages) |
| 7 | Go Digit General Insurance | ~96% | Fast-growing, tech-driven |
| 8 | Tata AIG General Insurance | ~95% | High disposal, lower settlement (see gap analysis) |
| 9 | Royal Sundaram General Insurance | ~93% | Best settlement-to-disposal ratio in the industry |
| 10 | Chola MS General Insurance | ~92% | Moderate performer |
| — | IFFCO Tokio General Insurance | 85.27% | Below industry average — 1 in 7 claims unsettled in 3 months |
| — | Kshema General Insurance | 26.88% | 73% of claims NOT settled within 3 months. Avoid. |
Public Sector General Insurers
| Rank | Insurer | CSR (3-Month) | Verdict |
|---|---|---|---|
| 1 | United India Insurance | 95.26% | Best among PSUs by settlement count AND amount |
| 2 | National Insurance | 91.79% | Near break-even ICR — pays out almost everything |
| 3 | New India Assurance | 91.75% | Largest by volume, moderate efficiency |
| 4 | Oriental Insurance | 90.17% | Lowest PSU CSR. Chronic claims processing delays |
The Number They Hide: Incurred Claim Ratio by Insurer
This is the metric that reveals how much money an insurer actually pays out relative to what it collects. Higher ICR = more of your premium comes back to you as claims.
Motor OD Segment — Incurred Claim Ratios
| Insurer | Motor OD ICR | What This Means |
|---|---|---|
| United India Insurance | 98.90% | Pays out ₹98.90 per ₹100 premium. Best payout ratio in India |
| Oriental Insurance | 97.95% | Extremely high — structurally underpriced |
| Universal Sompo | 91.32% | Surprisingly high for a private insurer |
| New India Assurance | 91.00% | Largest volume, near break-even |
| National Insurance | 90.68% | Consistent high payout |
| Acko | 86.87% | Digital efficiency allows high payout |
| Royal Sundaram | 85.76% | Strong for private sector |
| IFFCO Tokio | 84.12% | Middle tier |
| Reliance General | 75.57% | Retains ₹24.43 per ₹100 |
| HDFC ERGO | 74.66% | 99% CSR but keeps ₹25.34 of every ₹100 |
| Tata AIG | 74.51% | Fast disposal, conservative payouts |
| Shriram General | 72.97% | Low payout ratio |
| ICICI Lombard | 70.88% | Retains ₹29.12 per ₹100 |
| Magma HDI | 69.37% | Below industry average |
| Bajaj Allianz | 68.53% | Retains ₹31.47 per ₹100. Most profitable for the insurer |
| Cholamandalam MS | 65.05% | Low payout ratio |
| Liberty | 62.84% | Retains ₹37.16 per ₹100 |
| Future Generali | 62.43% | Lowest ICR — keeps the most, pays the least |
The contradiction: HDFC ERGO has 98.85% CSR but only 74.66% ICR. It settles almost every claim — but pays out only ₹74.66 per ₹100 of premium collected. United India Insurance has 95.26% CSR and 98.90% ICR — settles slightly fewer claims by count, but pays out almost every rupee.
Motor OD vs. Motor TP: Industry-Wide ICR
| Segment | Typical ICR Range | What This Means |
|---|---|---|
| Motor Own Damage | ~70% of gross direct premium | Profitable for private insurers. Room for surveyor deductions |
| Motor Third Party | ~90% of gross direct premium | Near loss-making. Claims take 8+ years to develop. TP premium hike proposed |
Settlement Ratio vs. Disposal Ratio: The Gap That Reveals Denial Rates
Disposal ratio = total claims resolved (paid + denied + closed). Settlement ratio = claims actually paid. The gap = claims denied.
| Insurer | Settlement Ratio | Disposal Ratio | Gap (Denial Proxy) |
|---|---|---|---|
| Royal Sundaram | 92.49% | 98.33% | 5.84% — Lowest gap. Denies the least |
| Go Digit | 92.66% | 98.24% | 5.58% — Very policyholder-friendly |
| Acko | 87.51% | 95.58% | 8.07% — Moderate |
| SBI General | 89.29% | 96.25% | 6.96% — Good balance |
| Bajaj Allianz | 87.47% | 98.19% | 10.72% — High disposal speed, significant denials |
| Chola MS | 86.10% | 96.19% | 10.09% — Notable gap |
| HDFC ERGO | 88.34% | 96.50% | 8.16% — Moderate |
| ICICI Lombard | 84.63% | 96.69% | 12.06% — 1 in 8 claims denied |
| Tata AIG | 84.94% | 98.38% | 13.44% — Highest gap. Fastest at saying no |
Data source: Royal Sundaram press release citing IRDAI FY 2023-24 figures
What this means in practice: If you file 100 claims with Tata AIG, 98 get processed quickly — but only 85 get paid. With Royal Sundaram, 98 get processed and 92 get paid. Tata AIG is “efficient.” Royal Sundaram is “generous.”
IRDAI Mandated Claim Settlement Timelines (2024 Rules)
These are not suggestions. They are regulatory requirements with penalties.
| Step | IRDAI Mandated Timeline |
|---|---|
| Claim acknowledgment | Within 3 days of intimation |
| Surveyor appointment | Within 72 hours (24 hours via GI Council tech platform) |
| Surveyor report submission | Within 15 days. Penalty: ₹500/day to the claimant for every day of delay |
| Claim decision after survey report | Within 7 days |
| Total settlement (from all documents received) | Within 30 days |
| Survey NOT required for | Motor claims under ₹50,000 |
| Interest penalty for insurer delay | 2% above prevailing bank rate on the claim amount |
Reality Check: Actual Settlement Timelines
| Claim Type | IRDAI Rule | Ground Reality |
|---|---|---|
| Cashless OD (network garage) | 30 days | 7-21 days on average |
| Reimbursement OD | 30 days | 30-60 days. Some insurers stretch to 90 |
| Third-party (MACT route) | 30 days for undisputed | 6-18 months minimum. 8+ years for contested claims |
| Small claims under ₹50,000 | No survey needed. Should be fastest | Many insurers still insist on survey. Challenge them citing IRDAI 2024 circular |
The ₹50,000 Rule: No Surveyor Needed
Since 2024, motor insurance claims under ₹50,000 do not require a mandatory survey by a registered surveyor. This is an IRDAI rule, not a suggestion.
How to use it
- Intimate the claim within 24 hours (call, app, or email)
- Take 360-degree photographs of the damage before any repair
- Submit photos, FIR (if applicable), driving license, and RC copy
- Insurer should process based on AI damage assessment or desk assessment
- If the insurer insists on a surveyor visit for a sub-₹50,000 claim, cite the IRDAI Master Circular on Protection of Policyholders’ Interests, 2024
Why this matters
Most minor claims — parking dents, bumper scratches, small panel damage — fall under ₹50,000. Previously, waiting 7-15 days for a surveyor was the biggest bottleneck. This rule eliminates that wait entirely.
Several insurers now offer app-based AI photo assessment for sub-₹50,000 claims: upload photos, get an instant settlement offer. Acko and Go Digit were early adopters of this technology. Understanding whether your policy is third-party only or comprehensive determines whether you can file an OD claim at all.
Why Motor Third-Party Insurance Is a Ticking Bomb
The Numbers
- Motor TP Incurred Claim Ratio: 88-91% (ultimate, after full development)
- TP claims take 8+ years to fully develop through courts
- Current TP rates unchanged since 2019-2021
- Proposed hike: 18-25% for FY 2025-26
The Process Problem
All TP claims go through Motor Accident Claims Tribunals (MACT). The Supreme Court has flagged systemic issues:
- Insurers show reluctance to settle at pre-litigation stage
- Strong opposition at first level of adjudication in MACT
- Opposition even at first appeal in High Court
- Inordinate delay in challenging MACT/High Court findings
What This Means for Policyholders
TP premiums will rise significantly. A 1,001-1,500cc car currently paying ₹3,416 could pay ₹4,030-4,270 after the hike. Above 1,500cc cars paying ₹7,897 could face ₹9,318-9,871. See current IRDAI-fixed TP rates and how comprehensive premium is calculated for the full rate table.
The entire non-life insurance sector reported ₹30,276 crore underwriting loss in FY25, despite motor being a ₹99,093 crore business (32% of all non-life premiums). Investment income is subsidising claim payouts — a structurally unsustainable model.
Common Reasons Motor Claims Get Rejected
Based on IRDAI complaint data and ombudsman records. Motor accounted for 24.8% of all insurance complaints in FY 2024-25.
Automatic Rejections (No Appeal Possible)
| Reason | Why |
|---|---|
| Driving under influence of alcohol/drugs | Criminal offence — blanket exclusion |
| Invalid or expired driving license | Includes class mismatch (LMV license on commercial vehicle) |
| Using personal vehicle for commercial hire | Policy covers private use only |
| Accident during racing or speed testing | Excluded activity |
Avoidable Rejections (Your Mistake)
| Reason | How to Avoid |
|---|---|
| Repairing before surveyor inspection | Never start repairs until surveyor visits. For claims under ₹50,000, photograph everything first |
| Late claim intimation | Intimate within 24 hours. IRDAI says delay alone cannot be sole rejection ground — but don’t risk it |
| Expired policy (even 1 day) | Set calendar reminders 30 days before expiry. No grace period exists |
| Undeclared modifications | Inform insurer about CNG kits, alloy wheels, performance parts, or any aftermarket additions |
| Second-hand car: policy not transferred | Transfer insurance within 14 days of ownership change |
Insurer Tactics to Watch For
| Tactic | What Happens | Your Defence |
|---|---|---|
| Surveyor under-assessment | Surveyor values ₹1.8 lakh damage at ₹80,000 | Get independent estimate. Challenge in writing. Escalate to IRDAI |
| Repeated document requests | Insurer keeps asking for “one more document” to delay | IRDAI rule: insurer cannot reject solely for missing documents if all were requested during underwriting |
| Cashless denied at dealer | Dealer refuses cashless because policy not bought from them | Not legal. Escalate to insurer and file IRDAI complaint |
| Depreciation deductions without zero-dep | 50% deducted on plastic/rubber parts, 30% on fibre | Expected on standard policies. Buy zero depreciation add-on for cars under 5 years |
How to Escalate a Motor Insurance Complaint
Level 1: Insurer Grievance Cell
File a written complaint with the insurance company’s grievance cell. They must respond within 15 days. Keep the complaint reference number.
Level 2: IRDAI Bima Bharosa Portal
Visit bimabharosa.irdai.gov.in. Register your complaint with:
- Policy number and claim reference
- Timeline of events
- Supporting documents (survey report, bills, communication)
- Amount claimed vs. amount offered
IRDAI forwards the complaint to the insurer and tracks resolution.
Level 3: Insurance Ombudsman
17 offices across India. Free. No lawyer needed. Can award up to ₹30 lakh for non-life claims. The ombudsman’s decision is binding on the insurer (not on you — you can still go to court if unsatisfied).
The Nuclear Option: Consumer Court
File under Consumer Protection Act. District Forum for claims up to ₹1 crore. State Commission for ₹1-10 crore. National Commission above ₹10 crore. Unlike the ombudsman, courts can award compensation for mental harassment and deficiency in service on top of the claim amount.
The Real Ranking: Composite Insurer Score
Combining all three ratios into a single view.
| Insurer | CSR (Count) | ICR (Amount) | Disposal-Settlement Gap | Overall Assessment |
|---|---|---|---|---|
| United India Insurance | 95.26% | 98.90% | Low | Best for claimants. Pays the most per rupee |
| Royal Sundaram | ~93% | 85.76% | 5.84% (lowest) | Denies the fewest claims. Strong all-round |
| Acko General | 99.98% | 86.87% | 8.07% | Best CSR. Good ICR for private sector |
| SBI General | ~98% | 89.29% | 6.96% | Largest garage network. Solid balance |
| Go Digit | ~96% | 92.66% | 5.58% | Low gap. Good settlement amounts |
| New India Assurance | 91.75% | 91.00% | Low | PSU workhorse. High volume, good payout |
| HDFC ERGO | 98.85% | 74.66% | 8.16% | High CSR but retains ₹25 per ₹100. Surveyor deductions common |
| Bajaj Allianz | ~98% | 68.53% | 10.72% | Most profitable for the insurer. Significant denials |
| ICICI Lombard | 98.45% | 70.88% | 12.06% | High CSR, but 1 in 8 claims denied |
| Tata AIG | ~95% | 74.51% | 13.44% | Fastest at denying claims. Widest gap |
| IFFCO Tokio | 85.27% | 84.12% | — | Below-average CSR. Moderate ICR |
| Kshema General | 26.88% | — | — | Avoid entirely |
Pay As You Drive: The New Variable (FY 2025 Onward)
IRDAI de-notified motor insurance tariffs from April 2024, allowing insurers to price based on actual driving behaviour.
What changed:
- Premiums can now be linked to kilometres driven
- Low-mileage drivers (under 5,000 km/year) can save 15-30% on OD premium
- High-mileage and commercial vehicle users may pay more
- Telematics-based pricing (driving speed, braking patterns, time of travel) is now permitted
What has not changed:
- TP premiums remain IRDAI-fixed (not deregulated)
- NCB discount structure unchanged
- Mandatory coverage requirements unchanged
This is the biggest structural shift in Indian motor insurance pricing since standardised tariffs were introduced. Most comparison sites have not updated their calculators for PAYD options yet.
What to Actually Check Before Buying Motor Insurance
Forget the “top 10 best car insurance” lists. Here is the five-point check:
-
ICR, not just CSR — How much does the insurer pay out per rupee? Above 85% is strong. Below 70% means aggressive cost control at your expense.
-
Disposal-Settlement gap — Under 7% is good. Above 10% means significant denial rates. Above 13% is a red flag.
-
Cashless garage network near you — Check the insurer’s garage locator for your specific pin code, not national totals. SBI General’s 16,000 garages mean nothing if none are within 10 km of your home.
-
Sub-₹50,000 claim process — Does the insurer support app-based AI assessment? Or do they still send a surveyor for every scratch?
-
Complaint ratio — Check IRDAI’s Bima Bharosa data for complaint volumes against the insurer, specifically in the motor segment.
Data Sources and Methodology
All data in this article comes from publicly available IRDAI sources:
- CSR data (FY 2024-25): IRDAI public disclosure on claims settled within 3 months, released February 2026
- ICR data: IRDAI Annual Reports (motor OD segment, historical). Coverfox compilation of IRDAI Annual Report data
- Settlement vs. Disposal ratios (FY 2023-24): Royal Sundaram press release citing IRDAI data
- Regulatory timelines: IRDAI Master Circular on Protection of Policyholders’ Interests, September 2024
- Premium and market data: IRDAI Annual Report 2024-25 (motor insurance: ₹99,093 crore, 32% of non-life)
- Complaint data: IRDAI Annual Report 2024-25 (motor: 24.8% of total complaints)
ICR figures are from the most recent publicly available IRDAI Annual Report data for the motor OD segment. CSR figures use the latest FY 2024-25 IRDAI release. These are not always from the same reporting year — cross-year comparison should be made with this caveat in mind.
No data in this article was sourced from insurer marketing materials or affiliate comparison platforms.
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