Claims arising from the novel coronavirus continue to rise for general insurance companies. Non-life insurers have received claims of more than Rs7,973 crore through 5.18 lakh applications, and settled 3.97 lakh claims amounting to Rs3,435 crore as on November 3.
Market participants say if there is a ‘second wave’, it would have a negative impact on the health portfolio. “In the last few days, there has been a surge in cases in Delhi, and there is also fear of cases increasing after the end of the festive season. We would see higher number of claims if the novel coronavirus continues to spread in the next one-two months,” said a senior official from a leading private insurance company.
According to the Ministry of Health and Family Welfare, there were 5.27 lakh active cases in India as on November 5. The number of people discharged was 77.11 lakh and 1.24 lakh died due to the pandemic.
Insurers are already expecting an increase in the loss ratio of the health portfolio. They expect the loss ratio for the retail heath policy to go up from current 65-70% to 80%. The loss ratio is the ratio of claims incurred to earned premiums. So, if the loss ratio is 80%, it means that an insurance company has received a premium of Rs100 and paid claims of Rs80 to the policyholder.
Industry officials said the average claim size for Covid is Rs1.53 lakh, though the figure varies from state to state.