Insurers settle 4.79 lakh Corona claims amounting to Rs 4,427 crore

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December 4, 2020 2:15 AM

The number of deaths caused by the virus stood at 1.38 lakh. Officials in the industry said the average claim size reported for novel coronavirus is Rs 1.49 lakh for the industry, while the average claims amount settled is around Rs 92,400.

The insurance industry is expecting an increase in the loss ratio in the health portfolio due to the ongoing pandemic. Insurers expect loss ratio for the retail heath policy to go up from current 65-70% to 80-85%.

General insurance companies continue to witness higher claims arising from the novel coronavirus. As on December 1, non-life insurance companies received claims of Rs 9,499 crore from 6.34 lakh policyholders, according to the General Insurance Council. Insurers have settled 4.79 lakh claims amounting to Rs 4,427 crore.

Market participants said the steady fall in active cases in the past few days and availability of vaccine for Covid-19 would lead to lower claims in coming months.“In the last few days, we have seen more recoveries than the daily new infection cases, which can bring some relief to the non-life insurance industry in the weeks to come,” said a senior official from a leading private insurance company.

According to the Ministry of Health and Family Welfare, there were 4.22 lakh active cases in India as on December 3, 2020, while 89.73 lakh were discharged. The number of deaths caused by the virus stood at 1.38 lakh. Officials in the industry said the average claim size reported for novel coronavirus is Rs 1.49 lakh for the industry, while the average claims amount settled is around Rs 92,400.

The average claim size, however, differs from one state to another. For example, in Maharashtra, the average claim size for Covid-19 is Rs 1.20 lakh, while it increases to Rs 1.80 lakh in Tamil Nadu and Rs 2.31 lakh in Telangana. Senior officials also said out of total claims received by the industry, Rs 2,666-crore claims came only from Maharashtra, followed by Tamil Nadu, Gujarat and Karnataka.

The insurance industry is expecting an increase in the loss ratio in the health portfolio due to the ongoing pandemic. Insurers expect loss ratio for the retail heath policy to go up from current 65-70% to 80-85%.

The loss ratio is the ratio of claims incurred to earned premiums. So, if the loss ratio is 80%, then insurance companies have received a premium of Rs 100 and have paid claims of Rs 80 to the policyholder.

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