Covid claims just Rs 1,000 crore short of standalone health insurers' premiums in FY21

Private health insurance firms came up trumps in growth in the pandemic year while the state insurers posted a decline as motor and crop insurance business de-grew.

Premiums in the overall motor portfolio fell 2 per cent to Rs 67,790 crore, while the crop business dropped by 3.5 per cent to Rs 31,184 crore in fiscal 2021.

Barring New India Assurance (NIA), the PSU general insurance firms, United India Insurance (UII), National Insurance Company and Oriental Insurance Company (OIC), have shrunk and lost their market shares in fiscal 2021. Among the top general insurers, only NIA posted positive premium growth, profitability and market share.

New India Assurance (NIA) raised its domestic market share to 14.33 per cent in FY21 from 14.11 per cent in 2019-20 while its domestic premium grew 6.2% at Rs 28,482 crore. Its domestic premium stood at Rs 32,500 crore. —

Covid claims

As Covid raged, the six standalone health insurers, led by Star Health & Allied Insurance, grew their premiums 11% to Rs 15,720 crore. There were Rs 14,608 crore claims under the Covid health schemes during the last fiscal, of which insurers had settled claims worth Rs 7,900 crore.

Volume-wise it about 85% of the total claims of over 10 lakh claims made. According to the data, the average reported claim size is to the tune of Rs 1.46 lakh but the average claim that insurers are settling is Rs 91,953.