Insurance Companies Settled Over 2.25 Lakh Death Claims During Covid Pandemic: IRDAI
Last Updated: December 27, 2022, 17:30 IST
The average amount per claim was Rs 31,804.
According to IRDAI, insurance firms paid out Rs 17,269 crore to resolve over 2.25 lakh mortality claims resulting from the pandemic up till March 31, 2022.
The Insurance Regulatory and Development Authority of India released its annual report, which highlighted that insurers settled over 2.25 lakh death claims up to March 2022. It added that a significant number of claims connected to Covid therapy were made to general insurers and standalone health insurers. The report appreciated the industry for handling such claims promptly and compensating almost Rs 25,000 crore. A total of 26,54,001 health insurance claims were resolved, according to the report’s data.
According to IRDAI, insurance firms paid out Rs 17,269 crore to resolve over 2.25 lakh mortality claims resulting from the pandemic up till March 31, 2022. In 2021–22, the life insurance sector paid benefits totalling Rs 5.02 lakh crore, or 73.1% of the net premium. A total of 70.39 percent of benefits were paid out by LIC, and the remaining 29.61 percent by private insurers.
According to the IRDAI annual report, “In case of an individual life insurance company, the life industry’s death claim settlement ratio climbed to 98.64% in 2021–22 from 98.39% in the previous year and the repudiation/rejection ratio reduced to 1.02% from 1.14%.’’
At least, 2.19 lakh health insurance claims were settled, and an amount of Rs 69,498 crore was paid by general and health insurers to cover the claims. The average amount per claim was Rs 31,804.
The general insurers’ net incurred claims increased by nearly 26% to Rs 1.41 lakh crore in 2021–22 from Rs 1.12 lakh crore in 2020–21. Earlier, a report by Indian Express said that standalone health insurers’ claims jumped 240% for coronavirus disease treatment during September 2020.
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