Insurers Have Settled 15.39 Lakh Health Claims Exceeding Rs 15,000 Crore: IRDA Official

She noted that both the insurance industry and the regulator had worked together to design new policies to cater to the new and unprecedented situation demands.

Representative Photo

Mumbai: After the ferocious second wave of the Covid-19 pandemic that swept India in April-May, insurance companies have settled about 80 percent or over 15.39 lakh health claims exceeding an amount of Rs 15,000 crore as of 22nd June, according to the Insurance Regulatory and Development Authority of India (IRDAI).  

“Over 19.11 lakh covid health claims have been reported as on 22nd June as far as medical insurance or hospitalization is concerned. While in terms of death claims, which is handled by the life insurers, about 55,276 claims have been intimated and nearly 88 percent, i.e., 48,484 claims amounting to Rs 3,593 crore have already been settled,” said Ms. T.L. Alamelu, Member (Non-Life), IRDA while inaugurating 13th Global Insurance E-Summit & Awards organized by industry body ASSOCHAM.

According to her, the repudiated claim for health is just about 4 percent, and in life, it is just about 0.66 percent, which is negligible.

Ms. Alamelu, however, said that these figures showcase the opportunity available for insurers, though Ayushman Bharat does cover health for many people, there are other schemes, including specialized state schemes, but there are still many people who are not covered by insurance by any form.

“Now we are grappling with the problem that most of these people have spent a good amount of their savings, it has even taken down many below the poverty line, they have gone into debts, sold up their assets, pledged their jewelry, and have been pushed back to worst times,” she said.

Ms. Alamelu added, “The industry has a tremendous responsibility, especially for a nation like India, to offer protection and just not assume that people will not take insurance. There has to be aggressive probably, more sort of forcefully sell insurance because it is no longer an option.”

She noted that both the insurance industry and the regulator had worked together to design new policies to cater to the new and unprecedented situation demands. “We have also eased some processes and procedures to make it easier for servicing the policyholders.”

Complementing the insurance industry for ramping up its digital platform to cater to the increased online demand, she said, “Going forward, most of it will shift from office to online, its employees have worked as much and more from their homes to ensure uninterrupted services to the policyholders.”

Talking about the micro, small and medium enterprises (MSMEs), she said, “There is a lot of focus on MSMEs, with the spate of recent initiatives by the government, insurance has a very important role to play here. The safety net offered by insurance keeps various industries thriving in a healthy manner. This spells greater employment, demand and consequent greater supply and the cycle goes on.”

On the insurance industry’s performance, she said that it grew exceptionally well to end the last financial year with combined life and non-life at a good nine percent growth, while this year, starting April-May, 17 percent has been registered.

On the growth prospects of the insurance industry in the next five years, she said that it could easily grow well at 40-50 percent to be highly optimistic if things are settled down, and otherwise it should grow at 25-30 percent as the world is there for them to take advantage.