Aviva Life Insurance offers a variety of plans, including term insurance, savings plans, ULIP plans, child plans, retirement plans, and group insurance plans. These plans are designed to provide financial security and help customers achieve their long-term goals.
Key highlights of Aviva Life Insurance India include: One of the earliest insurance companies in India, with a legacy dating back to 1834. The current joint venture started in 2002. A partnership between Aviva PLC and Dabur Group, combining global insurance expertise with local business knowledge. Offers diverse insurance and investment solutions, including term life insurance, savings plans, unit-linked insurance plans (ULIPs), retirement plans, child education plans, and group insurance policies. Committed to providing customer-centric services with a focus on digital platforms for ease of access and understanding of products. Aviva Life Insurance Company has a solvency ratio of 1.8 as of the IRDAI annual report 2023-24, indicating its strong ability to meet financial obligations. The company has a high claim settlement ratio of 98.3% in the financial year 2023-24, demonstrating its reliability in fulfilling claims. With over 122 branches across India, Aviva ensures accessibility for policyholders for their service and claim-related needs. Premiums paid for Aviva Life Insurance policies are eligible for tax benefits under the Income Tax Act of 1961. Aviva has been focusing on its online platform, offering several products like Aviva i-Life, Aviva Health Secure, and Aviva i-Shield, making it easier for customers to understand and purchase policies online.
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Latest claim settlement ratio of health and general insurers released by IRDAI in 2026: Acko, Aditya Birla, Galaxy lead; Shriram, IFFCO Tokio fall below 90%
When it comes to health and general insurance policies, policyholders expect prompt claim settlements from insurers in times of emergency. The real test of any insurance policy lies in how fairly and quickly claims are settled. To gauge an insurer’s efficiency, checking the claim settlement ratio is a reliable way. The Insurance Regulatory and Development Authority of India (IRDAI) releases a list of claim settlements by all health and general insurance companies every year.
According to the latest figures for FY 2024-25, the claim settlement ratio of various insurers has been revealed. Among private general insurers, Acko General Insurance took the lead with 99.98% of claims paid within 3 months, followed by Reliance General Insurance Co. Ltd. with a ratio of 99.32%. On the other hand, Kshema General Insurance Co. Ltd. had the lowest claim settlement ratio of 26.88% among private sector insurers.
Among public insurers, The Oriental Insurance Co. Ltd. settled 90.17% of its claims within 3 months. The New India Assurance Co. Ltd. and National Insurance Co. Ltd. had a claim settlement ratio of 91.75% and 91.79%, respectively.
In the standalone health insurance sector, Aditya Birla Health Insurance Co. Ltd., Galaxy Health Insurance Co. Ltd., Narayana Health Insurance Co. Ltd., and Niva Bupa Health Insurance Co. Ltd. each reported a 100% claim settlement ratio, with all claims settled within three months.
The claim settlement ratio refers to the percentage of claims that an insurer pays or settles out of the total number of claims it receives during a certain period. For instance, a health insurance company with a claim settlement ratio of 95% typically pays around 95 of every 100 claims it receives.
It’s essential for policyholders to check the claim settlement ratio of their insurer to ensure they are getting fair and prompt claim settlements. The IRDAI’s annual list of claim settlements provides a reliable source of information for policyholders to make informed decisions. By checking the claim settlement ratio, policyholders can gauge their insurer’s efficiency and make informed decisions about their insurance policies.
In conclusion, the claim settlement ratio is a crucial factor to consider when choosing a health or general insurance policy. Policyholders should check the claim settlement ratio of their insurer to ensure they are getting fair and prompt claim settlements. The IRDAI’s annual list of claim settlements provides a reliable source of information for policyholders to make informed decisions about their insurance policies.
Insurers to charge 18% GST on agents’ commission, Input Tax Credit issue
The Indian government’s decision to reduce the Goods and Services Tax (GST) on health insurance premiums from 18% to 0% has had an unintended consequence on the insurance industry. Insurers are now imposing an 18% GST on commissions paid to agents and distributors to offset losses from the withdrawal of input tax credit (ITC). This move has come as a major blow to insurance intermediaries across the country.
The GST cut means that insurers can no longer claim ITC on commissions, rewards, and other corporate expenses such as rent, technology, and manpower. As a result, insurers are passing on the GST cost to agents and distributors, which could squeeze smaller distributors and individual agents. For example, if the commission for a sale is Rs 100, the amount payable will reduce by 18% to Rs 84.74.
Industry experts warn that this new structure could make health insurance distribution less profitable or unviable for many agents, unless companies revise commission structures or offer alternative incentives. While customers may gain marginally from lower premiums, the ripple effects are being felt sharply across the industry. Insurers face higher operating costs, and distributors face lower earnings.
The problem stems from how the GST framework treats exemptions. For a company to claim input tax credit, there must be a GST component on its output. With the health insurance sector’s GST set to nil, insurers lose this offset mechanism, and expenses on rent, IT systems, advertising, outsourcing, and agent commissions will add up as unrecoverable costs.
Several insurance companies, including Aditya Birla Health Insurance, Care Health Insurance, Star Health Insurance, and ICICI Lombard General Insurance, have acknowledged the challenge and are passing on the GST cost to distributors. They have reiterated their commitment to passing on the entire GST benefit to customers, but noted that the exemption benefits customers while simultaneously increasing operational costs for insurers. The companies have stated that they will absorb the impact of GST on expenses, but will pass on the GST on commissions to distributors to maintain equilibrium and protect customer interests.
Bombay High Court’s stay brings GST relief to over a dozen insurers
The Bombay High Court has granted a temporary stay on a substantial demand and associated penalties by the Goods and Services Tax (GST) authorities, providing relief to over a dozen insurance companies. The insurance companies, including Aditya Birla Health Insurance, Oriental Insurance, and ICICI Lombard General Insurance, among others, had approached the court challenging the demand raised by the GST authorities, which totaled over Rs 10,000 crore. The court’s stay order brings immediate relief to the insurance companies, which had been facing significant uncertainty due to the GST demands.
The insurance companies had argued that the demand was in contravention of circulars issued by the Central Board of Indirect Taxes and Customs (CBEC) on October 11, 2024, and January 28, 2025, which were issued in pursuance of a decision taken by the GST Council. The companies’ counsel, Senior Advocates Arvind Datar and Rohan Shah, pointed out that in six cases, similar demands had been dropped by jurisdictional officers in Meerut, Delhi, and Pune, and two cases in Mumbai, and argued that the same approach should be adopted in the present case.
The court’s decision is seen as a significant relief for the insurance industry, which had been facing challenges due to the GST demands. The insurance regulator had changed the expense of management guidelines post the tax notices, giving relief to insurers. The GST Council had already recommended a clear position on co-insurance premium and ceding commission, which was subsequently implemented through CBIC circular clarifications. The court’s order reinforces that such circular-based guidance cannot be disregarded in assessment proceedings.
The matter will now be tested on its merits, but the interim protection itself is a meaningful safeguard for the insurance companies facing legacy exposes. The court will hear the matter further on February 18. The temporary stay on the GST demand is expected to provide a significant reprieve to the insurance companies, allowing them to continue their operations without the uncertainty of the substantial tax demand hanging over them.
Bombay High Court stays GST demands on co-insurance premiums.
The Bombay High Court has provided temporary relief to several insurance companies, including ICICI Lombard General Insurance, Aditya Birla Health Insurance, and Tata AIG General Insurance, by staying Goods and Services Tax (GST) demands on co-insurance premium and ceding commission. The court’s decision was based on the argument that the levy was contrary to circulars issued by the Central Board of Indirect Taxes and Customs (CBIC). The insurance companies had approached the court challenging orders passed by GST authorities in Palghar, Maharashtra, confirming the GST demands.
The petitioners, represented by senior advocates Arvind Datar and Rohan Shah, argued that the demands were in violation of CBIC circulars dated October 11, 2024, and January 28, 2025, which were issued pursuant to decisions made by the GST Council. They also pointed out that similar GST demands had been dropped by jurisdictional officers in other cases in Meerut, Delhi, Pune, and Mumbai, following the CBIC circulars. The court was shown an order from one such case to demonstrate the consistent departmental approach elsewhere.
The Directorate General of GST Intelligence had investigated over two dozen insurance companies for allegedly creating shell entities to pay excess commissions and misclassifying expenses to reduce GST liability. The Income Tax Department had also conducted parallel investigations into alleged tax evasion and violations of Insurance Regulatory and Development Authority of India rules. The GST probe focused on alleged fake input tax credit and misclassification of expenses, while the income tax investigation examined suspected tax evasion arising from commission payments in excess of regulatory limits.
The court’s decision has provided much-needed relief to the industry, according to Amit Maheshwari, managing partner at CA firm AKM Global. The court’s intervention highlights the importance of predictable tax administration and consistent field-level implementation. The ad-interim stay will remain in place until the next date of hearing, which is scheduled for after the respondents file their reply affidavits by February 12. The insurance companies will have to wait until then to know the final outcome of their petitions.
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