Private insurance firms have extra death claims than LIC

Private sector insurance companies have extra than three times the outstanding number of death claims on individual insurance policy compared to state-owned Life Insurance Corporation of India (LIC), Finance Minister Pranab Mukherjee told the Rajya Sabha on Tuesday.
Replying to additional during Question Hour, he said the outstanding number of death claims, as on March 31, 2009, as a percentage of total number of claims intimated to the companies in 2008-09 stood at 7.75(%) per cent for private companies.
The same for public sector LIC was 2.21(%) per cent, he said. For group policies, private sector companies had 3.93(%) per cent outstanding claims while LIC had 0.24(%) per cent.
Mukherjee said private sector insurance companies started operations eight years back while LIC has been in business since 1956.