Page 15 - Insurance Times July 2021

Claims made under Covid health deceased. Sun Pharma and TVS Motor; to the worst times," she said while
insurance have shot up to Rs 22,955 meanwhile, would pay lump sum addressing an Assocham event.
crore with 14.82 lakh customers compensation equivalent to 2-3 years She said both the insurance industry
submitting their hospital bills as on May of the deceased employee's salary.
and the regulator have worked
14, with the number of infections rising
together to design new policies to
rapidly. While insurers have settled Claims throw light on cater to the demands of new and
only claims of 12.33 lakh customers for unprecedented situation. "We have
about Rs 11,794 crore, they are yet to insurance status: Only
also eased some processes and
settle the claims of over 2.5 lakh 14% of Covid deaths had procedures to make it easier for
customers and amount involving Rs servicing the policyholders," Alamelu
11,161 crore. cover said.
While the country reported over 3.91
Corporates increasing lakh deaths due to Covid-19 pandemic, Insurers wary of offering
only 14 per cent of them - 55,276
medical benefits for staff deaths - have made insurance claims Covid specific policies due
and families so far, indicating the poor life insurance to low premium
penetration in the country.
India Inc is stepping up measures, such According to industry experts, some
as increasing health covers of staff Out of 55,276 claims intimated to the insurers are reluctant to offer standard
members and assuring support to insurance firms, nearly 88 per cent - Covid covers, as cases rise at an
families in the unfortunate event of 48,484 claims - amounting to Rs 3,593 alarming rate, making such products
death, as the second wave of the crore have already been settled, said unviable for them, especially given their
coronavirus continues to claim more T L Alamelu, Member (non-life), low premiums. This comes a day after
lives and hurt livelihoods. Insurance Regulatory and the regulator advised insurers to not
Development Authority of India
Firms across sectors, especially those deny such cover to consumers hit by a
(IRDAI).
categorised as essential, are looking at devastating second wave of Covid-19.
means to offer enhanced financial On the other hand, insurance In a statement, IRDAI said all general
security for their employees. These companies have settled about 80 per and health Insurers are mandated to
industries include manufacturing, cent - over 15.39 lakh - of health claims offer Corona Kavach and Corona
banking and finance, healthcare, exceeding an amount of Rs 15,000 Rakshak policies. A senior executive
aviation, retails, ecommerce and crore as on June 22. Over 19.11 lakh with a private insurance firm said when
media. Covid health claims have been these products were introduced last
reported as on June 22 as far as year, insurers sold them to help people
These measures are aimed at boosting
medical insurance or hospitalisation is get cover against Covid. But they are
staff morale and ensuring business
concerned, Alamelu said. not very enthusiastic about selling
continuity, especially for frontline blue-
collar workers. Covid-specific health The repudiated claims for health cover them for a second time.
covers offer daily benefit packages to are just about 4 per cent while in life Because these were short-term
those quarantined owing to the virus, it is just about 0.66 per cent, which is products, insurers priced them as such.
staffing executives and insurance negligible, she said. But now they may have to revisit their
experts told. Alamelu said these figures showcase stance on pricing. The loss ratio has
been adverse on these products. Also,
Companies such as Bajaj Auto, TVS the opportunity available for insurers.
some insurers are of the opinion these
Motor and Sun Pharma said that they "Now we are grappling with the
would extend compensation to the problem that most of these people policies are undercutting their
comprehensive products.
bereaved families and support the have spent a good amount of their
education of their children. Bajaj Auto savings. It has even taken many below He said, "The stance on coverage under
and Muthoot Finance said that the the poverty line, they have gone into such products will vary from insurer to
companies will pay the monthly salary debts, sold their assets, pledged their insurer. Some may have decided to go
for up to 24 months to the kin of the jewellery and have been pushed back slow on such products." T

The Insurance Times, July 2021 15