Page 8 - Insurance Times February 2022
P. 8

IRDAI




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         Insurers can't reject cock-        proven or established techniques. This  As per, IRDAI all insurance companies
                                            clause has been used by insurers in the  need to maintain a surplus of 1.5 times
         tail Covid therapy                 past to exclude robotic surgeries and  the liabilities at all times. The solvency
         IRDAI has asked companies not to re-  new treatments like stem cell.  margin - the minimum margin of assets
         ject Covid claims for antibody cocktail  Drugmakers in India had launched the  required by an insurer in excess of its
         therapy.                                                              liabilities - is like a bank's capital ratios.
                                            antibody cocktail in May 2021 at Rs
         By terming it as an 'experimental' treat-  59,750 for each patient dose of
         ment, the regulator has also asked in-  1,200mg (600mg of Casirivimab and Non-life insurance compa-
         surers to review the claims denied or  600mg of Imdevimab).           nies register over 7 pc rise
         deductions made in all such situations
         and take appropriate action to settle  Govt seeks dispensation        in gross premium at Rs
         them according to the terms of the                                    18,953 crore in Dec 2021
         policy.                            for PSU Companies
                                                                               The gross direct premium underwritten
                                            The government is in discussion with
         The circular to the chiefs of all non-life                            by non-life insurance companies grew
         and health insurance companies has  IRDAI seeking extension of special dis-  by 7.3 per cent to Rs 18,953.09 crore in
         come following complaints that many  pensation to the state-run general in-  December 2021, data from IRDAI
         insurers are rejecting claims for treat-  surers for meeting solvency require-  showed. The non-life insurance compa-
         ment in the third wave where the hospi-  ments.                       nies had underwritten gross premium
         tals have used expensive new antiviral  National Insurance Company Limited,  valuing at Rs 17,662.32 crore in Decem-
         drugs. "Authority has come across in-  Oriental Insurance Company Limited  ber 2020.
         stances of denial of claims and/or deduc-  and the United India Insurance Com-
                                                                               The 24 general insurance companies
         tion of expenses incurred towards 'anti-  pany Limited are loss-making insurers.
         body cocktail therapy' treatment for  In the last two years, the government  had registered a gross premium of Rs
         Covid, under the pretext that the said  has infused more than Rs 12,500 crore  16,109.62 crore in December 2021, up
                                                                               by 4.2 per cent from Rs 15,463.51 crore
         therapy is an experimental treatment,"  in these three companies.
         the IRDAI said in its communication.  The regulator is concerned over the  in the year-ago period, as per data of
                                                                               the Insurance Regulatory and Develop-
         The regulator pointed out that the an-  current financials of these firms and has  ment Authority of India (IRDAI).
         tibody cocktail (Casirivimab and   sought more details from the govern-
                                                                               The five standalone health insurance
         Imdevimab) has been given emergency  ment, said an official aware of the de-
         use authorisation in May 2021 by the  velopments adding that the regulator  companies registered a 31.3 per cent
         Central Drugs Standard Control     is most likely to extend the forbearance.  rise in their gross underwritten pre-
                                                                               mium at Rs 1,740.15 crore during the
         Organisation in India. All health insur-  IRDAI has been headless since the last
                                                                               month, against Rs 1,325.03 crore a year
         ance policies have a clause that excludes  nine months, its last chairman Subhash
         experimental treatments. The objec-  C Khuntia stepped down in May 2021  ago.
         tive is to ensure that money is spent on  on completion of his term.  The two specialised PSU insurers -- Ag-

           8  The Insurance Times, February 2022
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