Claims more than triple in less than a month

Increasing claims for the coronavirus pandemic have started hurting India's health insurance sector. Claimed amounts have more than tripled in less than a month to $75m as of 3 July. The total amount claimed for COVID-19 treatment on 8 June was $24m.

The number of claims also tripled to 35,000 from about 11,000 during the same period according to data from the General Insurance Council of India. Almost 23,000 claims worth $24.5m have been settled as of 3 July 2020.

The average claim amount has increased to $2,181 in July from $2,075 in June, the average settlement amount has, however, reduced to $1,070 from $1,198. This indicates that the policyholders are getting lower pay-outs even after COVID-19 treatment costs have increased. A report in the Economic Times quotes insurance industry executives saying that the claims could rise at alarming rates and the claim amounts would be huge if the rising trajectory of new cases is not arrested soon even though only an estimated 4% of the population in India have any sort of medical insurance cover.

In a related development the General Insurance Council (GIC) has published a schedule of rates for COVID-19 claims after discussions with medical professionals employed by member insurance companies. The council has said these rates are dynamic and will be revisited every month. The insurers shall be guided by the treatment protocols prescribed by the Indian Council of Medical Research.

According to an industry official, smaller hospitals have agreed to the rates suggested by the GIC whereas big corporate hospital chains have not agreed.

Source: Asia Insurance Review