Page 9 - The Insurance Times February 2025

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Insurance Companies Con- Business Correspondents Advocate for Inclusion in
tinue Delays in Hospital Insurance Sales
Bill Settlements Despite The Business Correspondent Resource Council (BCRC) has approached the
IRDAI Directive Insurance Regulatory and Development Authority of India (IRDAI) seeking
permission for field agents to sell insurance products. At present, the BC
Insurance companies are taking over
six hours to process the majority of network-introduced in 2007-is limited to last-mile banking services.
health cover claims and facilitate hos- BCRC has highlighted that climate-related risks are disproportionately im-
pital discharges post-settlement. This pacting vulnerable populations, creating an opportunity for weather-indexed
practice persists despite IRDAI's clear insurance products. These policies, which provide payouts based on specific
directive that insurers must process weather conditions such as droughts or heatwaves, can serve as a vital safety
cashless authorisation requests within net for those at the bottom of the economic pyramid.
one hour of receipt. According to IRDAI's initiatives, including Bima Trinity-comprising Bima Vistaar, Bima
IRDAI's Master Circular on health in-
Vahak, and Bima Sugam-could align well with the BC network's 500,000-
surance, final authorisations for dis-
strong nationwide presence. Additionally, the Reserve Bank of India's Digi-
charge requests should be granted tal Banking Units (DBUs) could complement the network. Established in April
within three hours to ensure timely
hospital releases. The directive also 2022, these DBUs, which offer digital banking services, have grown to 96
stresses that under no circumstances units by December 2023. Together, these platforms present a significant
should policyholders be made to wait opportunity for cross-selling insurance and enhancing financial inclusion.
unnecessarily for their discharge.
hours for approvals and discharges. as the ratio of annual premiums to GDP-
Further, IRDAI mandates that any de-
Among the 30,366 respondents, 21% dropped to 3.7% in FY24, down from 4%
lay beyond three hours requires the
insurer to cover any additional charges reported settlement processes taking in FY23, continuing a downward trend
24-48 hours, 12% experienced 12-24 since its peak of 4.2% during the COVID-
levied by the hospital from the
insurer's shareholder funds. In unfortu- hours, 14% reported 9-12 hours, and 19 pandemic. This decline was detailed
nate events of policyholder deaths dur- another 12% faced 6-9 hours of delays. in IRDAI's latest annual report.
ing treatment, insurers are instructed Only 8% indicated their claims were The report noted a marginal reduction
processed instantly.
to immediately settle claims and en- in life insurance penetration, which fell
sure the release of the mortal remains. from 3% in FY23 to 2.8% in FY24. Non-
However, a recent survey conducted by India's Insurance Contri- life insurance penetration remained
LocalCircles revealed that 60% of bution to GDP Declines to stable at 1% during the same period.
health insurance policyholders who However, per capita premium (insur-
filed claims in the last three years ex- 3.7% ance density) increased modestly from
perienced delays ranging from 6 to 48 India's insurance penetration-measured $92 in FY22 to $95 in FY23.

The Insurance Times February 2025 9