Page 15 - Insurance Times JUNE 2022

News

Life insurance firms settled individual, group as well as Pradhan IDBI Bank exits insurance,
Mantri Jeevan Jyoti Bima Yojana
2.2 lakh Covid death sells entire stake to Ageas
(PMJJBY) figures.
claims: IRDAI data for Rs. 580 crore
Life insurance companies have so far Life insurers' New business IDBI Bank has entered into a share
purchase agreement with Ageas
received 2,18,084 COVID claims
premiums zooms 84% in Insurance International, wherein the
amounting to Rs 16921.70 crores,
April bank is looking to sell its remaining
according to data provided to Business
stake of 25 percent in private sector life
by Life Insurance Council. Insurers say New business premiums (NBP) of life
insurer Ageas Federal Life Insurance
the death claims rose drastically in insurance companies jumped 84
for Rs 580 crore, making Ageas one of
2021 amid deaths during the second percent year-on-year (YoY) in April,
the few foreign insurers to raise its
COVID-19 wave. propped up by 141 percent increase in
stake in its Indian insurance joint
initial public offering-bound insurance
"During the 2nd wave, all insurance venture to 74 percent, after the
behemoth Life Insurance Corporation
companies observed multifold increase government raised the FDI cap in the
(LIC) of India's NBP, according to the
in the death claims under Covid and insurance sector.
latest data released by the Life
Non-Covid categories. All claims in The transaction is expected to be
Insurance Council.
which death was confirmed due to completed in Q2FY23, subject to
Covid 19 basis the medical documents In April, the industry earned NBP to regulatory approvals and satisfaction of
and / or hospital records, were the tune of Rs 17,939 crore, compared the terms and conditions set out in the
considered as COVID claims. A positive with Rs 9,739 crore in the year-ago share purchase agreement.
RTPCR & RAT test and subsequent period. LIC's NBP totalled Rs 11,717
death is also considered as Covid crore in the same period, up 141 Ageas Federal Life
death," says Rushabh Gandhi, Deputy percent, due to a colossal rise in group Insurance to look at
Chief Executive Officer at IndiaFirst single premium. Group single premium
inorganic play for bank
Life. reported a 227 percent jump to Rs
8,467 crore in the period. partnership
Gandhi adds, "IndiaFirst Life also
Alternatively, private insurers saw their Ageas stake increase will end
observed a rise in death claims during
NBP rise 27.47 percent to Rs 6,222.91 uncertainty around company, increase
the same time. In FY22 we have settled
crore, bankrolled by growth in domain knowledge, expertise
4785 individual life death claims of
individual non-single premiums.
which 845 death claims are directly Ageas Federal Life Insurance is hoping
attributed to COVID. IndiaFirst Life Among large private sector insurers, to increase its distribution footprint
Insurance has paid 159.51 crore of SBI Life's NBP was up 33.33 percent this fiscal with partnerships and tie-ups
COVID claims since the start of the YoY in April. HDFC Life's NBP was up with banks after IDBI Bank
pandemic." The figures include the 22.52 percent in the same period. discontinued selling its products.
The Insurance Times, June 2022 15