Which are the top 5 best health insurance companies in India in 2025? It is based on the recently published Insurance Brokers Association of India (IBAI) data.
Recently the Insurance Brokers Association of India (IBAI) published data about health insurance companies’ claim settlement. This I think an interesting data and helpful for all of us in choosing the right company. Hence, thought to write an article on this.
Top 5 Best Health Insurance Companies in India 2025
When I am mentioning the Top 5 Best Health Insurance Companies in India 2025 does not mean that they are the only BEST. As I mentioned, I am publishing this data based on the IBAI data (which I felt is more exhaustive than the IRDA data).
Before proceeding further, let me explain few definitions which they have mentioned in their report. That may help you understand.
# Solvency Ratio
The solvency ratio measures the extent to which assets cover expected future payments (i.e., claims). The IRDAI requires insurers to maintain a minimum solvency ratio of 1.5 at all times. Among PSU companies, New India tops the list with a ratio of 1.87. In the large private sector, Bajaj Allianz and ICICI Lombard are the leaders, while in the small private sector, Shriram and Navi excel. Finally, in standalone health insurance companies, Aditya Birla and Star top the list.
# Claims Paid Ratio on Number of Claims
The number of claims paid up to quarter 4 of the financial year ended March 31, 2023, from the total claims
available for processing, i.e., the total number of claims outstanding at the beginning of quarter 1 + the total number of claims reported/booked up to quarter 4 of the financial year ended March 31, 2023.
It is calculated as (Total number of claims paid up to quarter 4)/(Total Number of Claims available for processing for the year ending March 31st, 2023).
Here, in PSUs, New India and United India top the list (93% and 84%), in large private sector HDFC ERGO and Future Generali (94% and 89%), in small private sector Universal Sompo and Raheja QBE Gi (91% and 89%) and in standalone health insurance companies Aditya Birla Health and Niva Bupa (94% and 88%).
The industry average is 85%.
# Claims Paid Ratio on Amount of Claims
The amount of claims paid up to quarter 4 of the financial year ended March 31, 2023, from the total amount of
claims available for processing, i.e., the total amount of claims outstanding at the beginning of quarter 1 + the total amount of claims reported/booked up to quarter 4 of the financial year ended March 31, 2023.
It is calculated as (Total amount of claims paid up to quarter 4)/(Total Amount of Claims available for processing for the year ending March 31st, 2023).
Here, in PSUs, New India and Oriental Insurance top the list (57% and 50%), in large private sector Reliance and HDFC ERGO (62% and 56%), in small private sector Acko and Universal Sompo (67% and 64%) and in standalone health insurance companies Aditya Birla Health and Niva Bupa (70% and 66%).
The industry average is 51%.
# Claims Paid efficiency ratio on Number of Claims
The efficiency of an insurance company to settle the claims, i.e. The number of claims paid in 3 months as compared to the total number of claims available for processing, i.e., the total number of claims outstanding at the beginning of the quarter 1 + total number of claims reported/booked up to the quarter 4 of the financial year ended March 31, 2023.
It is calculated as (Total number of claims paid within 3 months up to quarter 4)/(Total Number of Claims available for processing for the year ending March 31st, 2023).
Here, in PSUs, New India and United India top the list (84% and 77%), in large private sector HDFC ERGO and Go Digit (93% and 84%), in small private sector Zuno and Acko (87% and 86%) and in standalone health insurance companies Care and Niva Bupa (88%).
The industry average is 80%.
# Claims Paid efficiency ratio on Amount of Claims
The efficiency of an insurance company to settle the claims, i.e. The amount of claims paid in 3 months as compared to the total amount of claims available for processing, i.e., the total amount of claims outstanding at the beginning of the quarter 1 + total amount of claims reported/booked up to the quarter 4 of the financial year ended March 31, 2023.
It is calculated as (Total amount of claims paid within 3 months up to quarter 4)/(Total Amount of Claims available for processing for the year ending March 31st, 2023).
Here, in PSUs, New India and Oriental Insurance top the list (37% and 39%), in large private sector HDFC ERGO and Reliance (45% and 40%), in small private sector Acko and Zuno (61% and 57%) and in standalone health insurance companies Care and Niva Bupa (66%).
The industry average is 35%.
# Claims Repudiation Ratio on Number of Claims
The number of claims repudiated &the total number of claims closed out of the total number of claims available for processing, i.e., the total number of claims outstanding at the beginning of the quarter 1 + total number of claims reported/booked up to the quarter 4 of the financial year ended March 31, 2023.
It is calculated as (Total Number of claims repudiated + The total number of claims closed up to the quarter 4)/(Total Number of Claims available for processing for the year ending March 31st, 2023).
New India tops the list here in PSUs (0.17%). In the large private sector, it is HDFC ERGO (2.85%) followed by Future Generali (3.78%). In the small private sector, it is Shriram (4.64%) and followed by Universal Sompo (5.54%). In standalone insurance companies categories, it is Aditya Birla Sunlife (3.9%) and Niva Bupa (9.25%).
The industry average is 5.66%.
# Claims Repudiation Ratio on Amount of Claims
The amount of claims repudiated &the total amount of claims closed out of the total amount of claims available for processing, i.e., the total amount of claims outstanding at the beginning of the quarter 1 + total amount of claims reported/booked up to the quarter 4 of the financial year ended March 31, 2023.
It is calculated as (Total Amount of Claims repudiated + the total amount of claims closed up to the quarter 4)/(Total Amount Claims available for processing for the year ending March 31st, 2023).
Oriental Insurance tops the list here in PSUs (0.26%) and followed by National Insurance (1.92%). In the large private sector, it is Future Generali (0%) followed by Go Digit (4%). In the small private sector, it is Shriram (0%) and followed by Raheja QBE (4.61%). In standalone insurance companies, the categories are Care Health (19%) and Aditya Birla Health (23%).
Industry average is 8.86%.
# Grievance Resolution Ratio
The number of grievances that were settled in the financial year ended March 31, 2023, i.e. complaints fully and partially accepted out of the total number of grievances available for processing, i.e., the total number of grievances pending at the beginning of the quarter 1 + total number of grievances reported up to the quarter 4 of the financial year ended March 31, 2023.
It is calculated as (Total Number of complaints for the quarter ending March 31st, 2023)/(Total Grievances available for processing for the year ending March 31st, 202).
In PSUs, it is United India that stands top with a resolving ratio of 82% followed by Oriental Insurance at 74%. In the large private sector, it is Bajaj Allianz (90%) followed by IFFCO Tokio (71%). In the small private sector, it is Zurich Kotak (80%) followed by Edelweiss (72%). In the standalone category, it is Aditya Birla Health (94%) followed by Niva Bupa (88%).
Based on the above data shared by IBAI, if I have to list Top 5 Best Health Insurance Companies in India 2025, they are as below.
- New India Insurance
- United India
- HDFC ERGO
- Aditya Birla Health
- Niva Bupa
Please remember that this is a list of insurance companies, not the products they offer. Additionally, this does not mean that these are the only top five companies or that they will remain so throughout your journey. Data may change at any point in time, and based on that, changing insurance companies may not be worth it. Instead, focus on the product features of these companies and make your decision accordingly. This is just an indicative list and not an accurate one; purchasing health insurance from any of the listed companies does not guarantee that your claims will be accepted.
You can access the IBAI Report HERE.
