Page 13 - Insurance Times July 2022

Insurers caution against fourth wave,'' said the head of under- IRDAI eases approval for
writing at a major general insurer.
Covid claims health insurance products
"But we are concerned as the govern-
After a lull, there is once again an in- IRDAI extended the "Use and File" pro-
ment machinery has not fully woken
crease in claims related to Covid in the cedure to all health insurance prod-
up. Booster doses should begin in the
wake of increasing cases, according to ucts, facilitating faster customer ac-
public distribution programme imme-
insurers. Major general insurers and cess to health policies.
diately,'' he added.
standalone health cover providers have
All categories of products and add-ons
been witnessing an increase in the Unwarranted and costly therapies
or riders to be introduced or modified
could lead to an escalation in treat-
number of claims.
or revised under health insurance busi-
ment costs and claims, leading to
"We are watching the scenario care- ness and offered by general and health
higher premiums, which will push cus-
fully. Instead of roughly 10 claims per insurance companies are permitted to
tomers and insurers into a 'vicious
day a couple of months ago, there are be launched through "Use and File",
circle' , according to insurers.
about 50 to 60 these days," S Prakash, IRDAI said in a circular to the CEOs of
Managing Director, Start Health and The total number of Covid cases insurance companies.
Allied Insurance Company, told. climbed to 4,33,19,396 with the addi-
Health portfolio has emerged as the
tion of 9,923 fresh cases, according to
We are advising policyholders not to biggest segment in the general insur-
data released by the Health Ministry.
take unnecessary and expensive treat- ance category with a premium income
The number of active cases increased
ments such as cocktail therapies and of Rs 73,582 crore in FY22, a rise of
to 79,313. The death toll increased to
CT scans in panic without proper ad- 25.39 per cent. Under the "Use and
5,24,890 with 17 deaths.
vice. Hospitalisations are very few in File" system, insurers are permitted to
the fourth wave, compared to the pre- The demand for health cover has been market products without the
increasing, say insurers. "In the last
vious ones,'' said Prakash, who is also regulator's prior approval, thus avoid-
a medical doctor. two years, awareness about health ing a longer waiting duration in offer-
insurance has increased considerably, ing innovative insurance solutions to
According to industry data, 98 per cent
and the industry foresees a steady customers in order to help address the
of Covid claims originate from general
spike in the coming years,'' said dynamic environment. However, in the
health insurance policies, and only two
Shreeraj Deshpande, Head - Health "File and Use" system, an insurer, who
per cent are Covid-specific policies
Businesses, SBI General Insurance. wishes to introduce a new product, has
such as Carona Kavach.
"We have also seen an uptick in health to file an application for the product
"There has been a spurt in the intention
insurance policy renewals. The pan- with the IRDAI and use the product for
to take insurance after the terrible sec-
demic has impacted the urban and sale in the market only after getting all
ond wave of the pandemic in India. The
rural sectors and drawn attention to the regulatory approvals.
severity of the third wave was relatively
the need forcustomised products that "The board approved policy shall also
less and hospitalisation claims had de-
meet customer requirements,'' he comply with the norms specified herein
creased. We see a similar trend in the
added.
and the same shall be complied at the
The Insurance Times, July 2022 13