₹283 Crore in Death Claims Nobody Collected

Cheat Sheet

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4,999 death claims were still pending at the end of FY 2024-25, up from just 458 the year before. LIC accounts for 4,790 of them (95.8%).

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Separately, ₹38.69 crore in death claims went uncollected across 243 policies in FY 2024-25. These are cases where the insurer approved the claim but nobody came to collect the money.

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Unclaimed claims peaked at ₹482 crore in FY 2021-22, when COVID deaths left families unaware of existing policies. The drop to ₹38.69 crore shows insurers made progress tracing nominees.

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Among private insurers, most have near-zero pending claims. HDFC Life: 5 pending. ICICI Prudential: 4. Max Life and Canara HSBC: zero. The operational contrast with LIC’s 4,790 is stark.

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SBI Life is the outlier among private insurers: 165 claims pending at year-end, worth ₹40.27 crore. That’s higher than any other private insurer by a wide margin.

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All data from IRDAI Handbook of Insurance Statistics 2024-25, Individual Death Claims.

4,999

Pending Claims

End of FY 2024-25

▲Up from 458 previous year

₹38.69 Cr

Unclaimed Amount

FY 2024-25

▼Down from ₹482 Cr in FY 2021-22

95.8%

LIC’s Share of Pending

4,790 of 4,999 claims

▲Processing backlog

Someone in your family dies. You file a death claim with their life insurer. And then you wait. IRDAI data shows that at the end of FY 2024-25, 4,999 death claims were still sitting in processing queues. Another 243 claims had been approved but never collected. For those families, the insurance they paid premiums on for years hasn’t delivered when it was supposed to.

The pending claims spike

For most of the last decade, the number of claims pending at year-end had been falling steadily. Then FY 2024-25 happened.

IRDAI Handbook of Insurance Statistics, FY 2013-14 through 2024-25.

The count jumped from 458 to 4,999, nearly 11 times. But the amount actually fell from ₹414 crore to ₹283 crore. That’s an important detail: the new pending claims are smaller-value policies. This points to a processing backlog on high-volume, lower-value claims, not a wave of contested high-value claims.

It’s almost entirely LIC

Claims pending at end of FY 2024-25, by insurer

Insurer ⇅	Pending Count ⇅	Pending Amount (₹ crore) ⇅
LIC	4,790	₹216.83 cr
SBI Life	165	₹40.27 cr
Bajaj Allianz Life	4	₹7.32 cr
ICICI Prudential	4	₹4.25 cr
Aditya Birla Sun Life	6	₹2.63 cr

IRDAI Handbook of Insurance Statistics 2024-25.

LIC’s 4,790 pending claims account for 95.8% of the industry total. The previous year, LIC had only 275 pending at year-end. This 17x increase suggests a late-year processing bottleneck, not a policy of delaying claims. LIC processed over 869,000 total claims during the year; the 4,790 pending represent 0.55% of their volume. But for the families of those 4,790 policyholders, the delay is real.

What this means for you

If you have a pending LIC claim, the data suggests it’s a processing queue issue, not a rejection in disguise. LIC’s claim settlement ratio remained above 98%. Follow up persistently: call the branch, escalate to the divisional office, and if it’s been more than 30 days, file a grievance on the IRDAI IGMS portal (igms.irda.gov.in). IRDAI’s turnaround directive is 30 days for non-investigation claims.

SBI Life: the private insurer exception

Most private insurers have near-zero pending claims. Max Life, Canara HSBC, PNB MetLife, and Bharti AXA all closed FY 2024-25 with zero pending death claims. HDFC Life had 5. ICICI Prudential had 4.

SBI Life is different. 165 claims pending at year-end, worth ₹40.27 crore. That’s more than any other private insurer by a factor of 30x.

SBI Life pending claims

165 claims, ₹40.27 crore

SBI Life’s pending count has fluctuated: 912 in FY 2020-21 (COVID), down to 36 in FY 2022-23, back up to 165 in FY 2024-25. The average pending claim is ₹24.4 lakh, suggesting these are higher-value term insurance claims that may require investigation.

Highest among private insurers

IRDAI Handbook 2024-25.

SBI Life’s average pending claim is ₹24.4 lakh (₹40.27 crore / 165 claims). That’s significantly higher than their average paid claim of ₹5.65 lakh. Higher-value claims are more likely to trigger investigation (fraud checks, medical history verification), which extends processing time.

What this means for you

If you have a high-value term insurance claim with SBI Life, expect a longer processing time. The data shows SBI Life investigates higher-value claims more aggressively. Keep all documentation ready: death certificate, policy document, nominee ID proof, and any medical records. If the claim has been pending for more than 30 days without communication, file on IGMS.

The unclaimed money problem

Separate from pending claims, there’s money that insurers approved but nobody collected. These are “unclaimed” claims where the insurer tried to pay but couldn’t locate the nominee, or the nominee never came forward.

IRDAI Handbook of Insurance Statistics, FY 2019-20 through 2024-25.

The FY 2021-22 peak of ₹482 crore unclaimed reflects the COVID aftermath. People died, and their families either didn’t know a policy existed or couldn’t navigate the claims process during lockdowns. The drop to ₹38.69 crore in FY 2024-25 shows progress. IRDAI’s push for insurers to proactively trace nominees (using death registries and Aadhaar linkages) has worked.

But ₹38.69 crore is still 243 families who are owed money and haven’t received it. In FY 2024-25, LIC accounted for 187 of these (₹30.29 crore) and SBI Life for 55 (₹7.61 crore).

What this means for you

Make sure your nominee knows: (1) that the policy exists, (2) which insurer it’s with, (3) the policy number, and (4) how to file a claim. Keep physical copies of the policy document where your family can find them. Register the policy on the insurer’s portal so your nominee can track it. If you suspect a deceased family member had a policy you can’t find, check the IRDAI BIMA Sugam portal or contact the Life Insurance Council’s unclaimed policy search.

Private insurers that cleared everything

The operational contrast is stark. In FY 2024-25, these insurers closed the year with zero pending and zero unclaimed death claims:

Max Life: 20,165 claims processed during the year, zero pending at year-end
Canara HSBC Life: 2,771 claims processed, zero pending
PNB MetLife: 5,615 claims processed, zero pending
Bharti AXA: 2,068 claims processed, zero pending

HDFC Life’s improvement is particularly notable. In FY 2020-21, they had 178 claims pending worth ₹167 crore. By FY 2024-25: 5 pending, ₹3.75 crore. That’s a 97% reduction in four years.

Frequently asked questions

Why are so many LIC claims pending?

LIC’s 4,790 pending claims (end of FY 2024-25) represent a processing backlog, not mass rejection. LIC processed over 869,000 claims during the year with a settlement ratio above 98%. The pending count jumped from 275 the previous year, suggesting a late-year surge in claim filings or an administrative bottleneck. The average pending amount (₹4.53 lakh per claim) indicates these are smaller-value policies. Source: IRDAI Handbook 2024-25.

What should I do if my claim has been pending for more than 30 days?

IRDAI’s claims settlement guidelines require insurers to settle non-investigation claims within 30 days. If your claim has been pending longer: (1) Call the insurer’s claims helpline and get a reference number, (2) Send a written follow-up via email to the claims department, (3) File a grievance on the IRDAI IGMS portal (igms.irda.gov.in), (4) If no response within 30 days of the IGMS complaint, approach the Insurance Ombudsman. Each escalation step creates a paper trail that helps resolve the claim.

How do I find out if a deceased relative had a life insurance policy?

Three options: (1) Check the IRDAI BIMA Sugam portal, which is building a centralised policy database, (2) Contact the Life Insurance Council’s unclaimed policy helpline, (3) Check the deceased’s bank statements for premium debit entries, which will show the insurer’s name. Also look for policy documents in their physical files, email inbox (search for “policy” or “premium”), and their Digilocker account if they had one.

What happens to unclaimed insurance money?

Under IRDAI regulations, unclaimed amounts remain with the insurer for 10 years, earning interest at the rate specified by IRDAI (currently linked to the bank savings rate). After 10 years, the amount is transferred to the Senior Citizens’ Welfare Fund (SCWF). Nominees can still claim from the SCWF, but the process is more complex. It’s in your family’s interest to claim within the first 10 years.

Methodology

Data source: IRDAI Handbook of Insurance Statistics 2024-25, Individual Death Claims (insurer-wise and industry aggregate). Industry totals from claims_industry.json; insurer-level from claims_insurer.json.

Definitions: “Pending” claims are those filed but not yet settled (neither paid nor rejected) at year-end. “Unclaimed” claims are those approved by the insurer but not collected by the nominee. These are separate categories; a claim cannot be both pending and unclaimed simultaneously.

Limitations: The data does not include aging buckets (how long each claim has been pending). The spike from 458 to 4,999 cannot be attributed to specific causes from this data alone; it could reflect late-year filing surges, system migration issues, or investigation backlogs. No insurer-level breakdown of unclaimed claims is available for all insurers; only major ones report this figure.