Insurance coverage firms have already settled claims of greater than Rs 16,000 crore as a result of Covid and the numbers are nonetheless rising, in response to trade executives.
Bhargav Dasgupta, MD & CEO, ICICI Lombard Common Insurance coverage in an analyst name mentioned that the second wave impacted the prosperous class having higher insurance coverage. “Covid claims are considerably increased and the reporting tail is longer. Even because the variety of circumstances got here down, average and demanding circumstances had considerably elevated,” he mentioned. ICICI Lombard has elevated costs for group medical health insurance following increased claims.
“As an trade, we had 10 lakh claims within the first quarter of this yr, which is identical because the variety of claims for the entire of final yr. The claims are near the provisions that we had made final yr,” mentioned Ritesh Kumar, MD & CEO, HDFC Ergo Common Insurance coverage. He added that if his firm’s expertise was something to go by, 25% of the claims have been but to return in.
In line with PolicyBazaar medical health insurance head Amit Chhabra, within the first wave of the pandemic, claims for Covid remedy have been a 3rd of complete well being claims. This dropped to 31% as the primary wave ebbed within the December quarter even because the share of personal remedy elevated. Earlier than the second wave hit, there was a pointy drop in Covid hospitalisation circumstances and an increase in elective procedures, which resulted within the share of Covid dropping to 14%.
Within the first quarter of the present fiscal, Covid claims are anticipated to be greater than 50%. Even now claims are coming in for reimbursement for hospitalisation and domiciliary remedy. One more reason for the rise in Covid claims through the first quarter is the drop in different illnesses as a result of lockdown.