Insurers have paid more than US$2bn on 80% of COVID-19 claims

Insurance companies have settled about 80%, or more than 1.539m health claims with a total payout exceeding INR150bn ($2bn) as of 22 June, said a top IRDAI official.

Over 1.911m COVID-19 health claims have been lodged up to 22 June related to medical insurance or hospitalisation cover, reported Hindu Business Line.

“In terms of death claims, which is handled by life insurers, about 55,276 claims have been intimated and, nearly 88%, or 48,484 claims amounting to INR35.93bn, have already been settled,” said Ms TL Alamelu, Member (Non-Life), IRDAI.

She said repudiated claims are 4% for health insurance and 0.66% for life insurance.

Commenting on the large number of people who lack health insurance and who have fallen into poverty because of COVID-19, she said, “The industry has a tremendous responsibility, especially for a nation like India, to offer protection and just not assume that people will not take up insurance.” She urged insurers to be more forceful in selling insurance because not doing so is no longer an option.

Source: Asia Insurance Review