The Insurance Regulatory and Development Authority of India (IRDAI) published its final Fiscal Year 2025 (FY25) Claim Settlement Ratio (CSR) report on Thursday, April 2, 2026. This data directly impacts your car insurance renewal decision this month. New India Assurance led with a 96.5% CSR for motor own damage claims, a 0.8% increase from FY24’s 95.7%. The national average for private car insurers was 89.1%, meaning nearly 11 claims per 100 were denied or pending. This matters because a low CSR predicts your claim’s likelihood of swift approval.
New India Assurance Ties With Tata AIG at 96.5% CSR
New India Assurance, headquartered in Mumbai, processed 1,82,456 private car own damage claims in FY25. It settled 1,76,160 of them. Tata AIG General Insurance matched this 96.5% ratio, settling 98,452 of 1,01,996 claims. Both companies operate extensively in Delhi-NCR and Bengaluru. Their cashless garage networks exceed 5,000 outlets each. But a high CSR doesn’t guarantee every claim’s success. Specific policy wordings and documentation remain critical.
ICICI Lombard reported a 94.2% CSR for FY25, down from 94.8% in FY24. The insurer settled 2,15,890 claims from 2,29,120 received. Its average claim processing time for cashless claims was 4.2 days in Q4 FY25. HDFC Ergo General Insurance posted a 93.8% CSR, settling 1,87,654 of 2,00,059 claims. The company’s Gurugram-based digital claim hub handled 68% of all claims via its mobile app in FY25.
Why a CSR Below 85% Is a Red Flag for Policyholders
Bajaj Allianz General Insurance’s CSR was 88.4% for FY25. It settled 1,65,432 claims from 1,87,050 received. Reliance General Insurance’s CSR dropped to 81.3% from 84.1% in FY24. Its Mumbai regional office reported 12,450 pending claims as of March 31, 2026. An CSR below 85% suggests systemic issues with claim approval. The IRDAI’s public notice dated March 15, 2026, flagged 12 insurers for claim handling delays, including three with CSRs under 80%.
But customer experience varies by region. In Chennai, a July 2025 Hyundai Creta claim with Bajaj Allianz took 17 days for settlement. The policyholder, R. Kumar, provided all documents but faced three queries about the repair estimate. This aligns with the insurer’s lower CSR. Conversely, ICICI Lombard’s Pune network approved a spot claim for a Maruti Suzuki Dzire in 72 hours at a network garage.
Common Mistakes That Delay Car Insurance Claims
Most claim rejections stem from avoidable errors. The IRDAI’s 2025 consumer complaint data shows 34% of disputes involve missing First Information Report (FIR) copies for theft claims. For accident claims, 27% lack the mandatory police spot survey report. A June 2025 Delhi High Court ruling emphasized that insurers cannot deny claims for minor documentation gaps if the accident’s genuineness is proven.
Anjali Menon, Head of Claims at HDFC Ergo, stated in an April 1, 2026, interview: “We aim for 48-hour settlement for spot claims with complete documents. Policyholders must notify us within 24 hours and upload all photos via our app.” Her team processed 45,000 claims in January-March 2026. The average payout for own damage claims was ₹48,200. Third-party claims averaged ₹3.1 lakh and often take longer due to legal procedures.
Spot Claims vs. Reimbursement: Processing Time Differences
Cashless claims at network garages averaged 3.5 days for FY25. Reimbursement claims, where you pay upfront and seek repayment, took 22 days on average. The delay often comes from document verification. For a ₹1.2 lakh claim in Bengaluru, a policyholder with Royal Sundaram Insurance waited 28 days for reimbursement because the garage’s estimate was 18% higher than the insurer’s surveyor’s assessment.
New India Assurance’s digital claim platform approved 58% of FY25 claims within 24 hours. Its ‘instant claim’ feature for damages under ₹15,000 requires only three photos and a video. This service was used for 82,000 claims in FY25. The company’s CSR for such instant claims was 99.2%. Compare this to a generic 96.5% overall ratio. Your claim’s size and type greatly affect outcomes.
And the trend toward digital is accelerating. IRDAI data shows 73% of FY25 car claims were initiated via mobile apps, up from 61% in FY24. Insurers like Digit General Insurance, with a 90.7% CSR, process 92% of claims digitally. Their average processing time is 11 minutes for eligible cases. But their overall CSR is lower because complex theft claims require manual verification.
For policyholders, the action is clear. Before your April-June 2026 renewal, check your insurer’s FY25 CSR on the IRDAI website. Also review your insurer’s network garage density in your city—Mumbai has 4,200 network garages, while smaller cities like Jaipur have about 300. A high CSR with few local garages may not help if you need quick roadside assistance.
The IRDAI’s March 2026 bulletin highlighted that insurers with CSRs above 95% had 40% fewer customer complaints. This correlation is strong. When choosing a new policy, prioritize CSR over marginal premium savings. A ₹2,000 cheaper policy with an 82% CSR could cost you a denied claim worth ₹1 lakh.
Remember, the CSR is an annual average. Your individual claim depends on your policy’s inclusions, your driving history, and the accident’s specifics. Always read the policy wordings for exceptions like “consequential losses” or “wear and tear.” The fine print often explains why even a top insurer might reject a particular claim.
For context on rising claim volumes, see our report on Insurers Lose ₹7,200 Crore in Q4FY26 Due to Auto Claims. The surge in third-party claims and repair costs pressured margins. This makes CSR consistency even more vital. An insurer’s financial health affects its ability to pay claims promptly.
Lastly, file claims promptly. The IRDAI’s 2025 data showed claims filed within 48 hours had a 94% settlement rate. Those filed after 7 days dropped to 76%. Delhi policyholder S. Mehta learned this when he filed a claim for a parked car dent after 10 days. His insurer, with a 91% CSR, denied it citing “insufficient evidence of incident timing.”
Check your current insurer’s FY25 CSR now. If it’s below 90%, compare with New India Assurance (96.5%), Tata AIG (96.5%), or ICICI Lombard (94.2%). The April 2026 renewal window is your chance to switch based on hard data, not marketing slogans.
