It’s not without any reason that LIC enjoys a handsome market share in Life Insurance industry. The Government Company stands on top of the list when it comes to ‘successful claims settlement’. The last thing that any policy holders’ kin needs is a rejected claim (after losing their loved ones); the situation cannot get any worse than that. 
HDFC Life doesn’t have such as great claim settlement ratio as LIC, and to make the matter worse, IRDA, the regulator, has recently slapped a hefty penalty of Rs.1.05 crores on the company for rejecting a claim against the rule book. The company has recently rejected a death claim (home loan security policy) when the insured person died with in 90 days from the cover start date. IRDA says it has clearly mentioned not to add such an exclusion clause but it seems HDFC Life hasn’t listened to the regulators words.
To make it even even worse, HDFC Life has to now pay the fine (Rs.1.05 crores) with in 15 days from the date of being notified by IRDA.
Moral: Play it fine or get punished.
