Private sector lender Kotak Mahindra Bank on Thursday stated its life insurance coverage arm expects to incur a lack of as much as Rs 275 crore for the quarter ended June 2021 on account of excessive fatalities in India throughout the second wave of COVID-19.
“Due to increased claims and higher mortality related provisioning arising on account of the second wave, the company expects to incur a loss for the quarter ended June 2021 in the estimated range of Rs 225-275 crore on shareholder’s account,” Kotak Mahindra Life Insurance Company stated in a regulatory submitting.
The firm stated the provisioning going ahead will rely on the tendencies in mortality.
“The company continues to have a strong capital and solvency position,” the personal insurer stated.
Kotak Mahindra Life Insurance Company stated the foregoing extraordinary improvement and its potential impression have been mentioned at a gathering of its board on June 16, 2021.
Kotak Life Insurance is among the quickest rising insurance coverage firms in India, overlaying over 30 million lives nationwide (as on September 30, 2020).