Term Insurance Claim Rejected? — Oct 2026

A high claim-settlement ratio sounds reassuring, but most Indian term insurance claims are rejected for policy errors, not fraud. Here's what every loan-holder must verify before assuming their family is protected.

Here's what happened: Ageas Federal Life Insurance launched its Super Protect Plus term plan on Policybazaar, offering a 12% first-year premium discount and a 99.82% claim settlement ratio for salaried and self-employed buyers.. The plan bundles complimentary health management services worth up to ₹53,000 annually and includes inbuilt Terminal Illness cover, with 0% GST applicable under current tax rules.. The launch highlights a wider industry reality: term plan availability has expanded dramatically online, but claim rejection due to incomplete disclosures remains a persistent, underdiscussed risk for Indian households..

What you should do: Pull out your existing term policy and verify that every pre-existing condition, smoking habit, and outstanding loan was declared accurately at the time of purchase — errors here are the top claim-rejection trigger.. If you carry a home or personal loan, check whether your loan-linked insurance covers only the outstanding balance — and whether your family also has a standalone term plan covering their living expenses.. Before buying any new term plan, compare claim settlement ratios AND the 'claims repudiated' count in each insurer's IRDAI annual return — the ratio alone hides how many families were actually turned away..

IRDAI publishes each insurer's exact claims repudiated count every year at irdai.gov.in — divide it by total claims to get the real rejection picture, not just the approved-claims ratio insurers advertise.