5 thoughts on “Ask the Readers: Evaluating Life Insurance Providers

  1. I’ve Term insurance split in two policies, one from LIC and other one from ICICI (iProtect). This is just a matter of preference otherwise I dont give more weightage to LIC over established private players.

    – Jagbir

  2. As of writing this analysis, the votes are overwhelmingly in favor of LIC.

    But personally, I am undecided — I’ve had bad experiences with LIC (chiefly on account of agents/direct marketers and clueless diagnostics outlets). I’m not too keen on the private players too since I’ve read that their claims rejection ratio is disproportionately high. Quite a dilemma.

  3. Hi Vinaya,

    The 3 important factors which influenced my decision in favour of LIC are

    1. In case of the insurance company going bust, the Govt of India is the guarantor for the entire insurance sum on behalf of LIC whereas for others it is only upto to max. of 1 Lakh.

    2. The private insurance providers play havoc with the insurance money. They literally play with your money and make a mockery of IRDA guidelines. ICICI Bank is a prime example. Just can’t bet on private players for my insurance. In comparison, I have seen LIC taking a conservative bet by investing the money in blue chip companies and that too during the down turn.

    3. As mentioned by you, Claims Rejection Ratio is the lowest for LIC.


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