International Journal for Recent Development in Science and Technology

One of the most significant services under the essential components of life insurance services is claim settlement administration.The present study aims to investigate the claims settlement procedures employed by public and private life insurance companies in India.Additionally, it seeks to evaluate the impact of these procedures on the operational efficacy and profitability of these companies.In the public sector, the only state-owned company in India is the Life Insurance Company (LIC), whereas the private sector companies that were sampled included ICICI Prudential Life Insurance, HDFC Life Insurance, MAX Life Insurance, and Bajaj Allianz Life Insurance.The firm annual reports from 2019-20 to 2022-2023 that were chosen, as well as the IRDA annual reports, were utilized to gather the necessary data.The different advantages that are given to policy holders by particular public and private sector companies-such as annuities, death claims, maturity benefits, etc.-are examined.According to the analysis, LIC of India leads the sector in both policy sales and benefit payouts.ICICI Life Insurance, HDFC Life Insurance, Bajaj Allianz Life Insurance, and MAX Life Insurance were the top-performing private sector life insurance companies in terms of overall benefit payments.It is determined that the life insurance industry's claim settlement procedures have a statistically significant effect on both their profitability and operational effectiveness.Furthermore, a statistically significant favorable influence was observed in the claim settlement methods of specific life insurance players.