Page 8 - Insurance Times February 2022

IRDAI

News

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