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Tag: Covid Health insurance

  • Since pandemic started: Covid well being cowl claims surge to 36K crore, most from Maharashtra

    Insurance corporations acquired 28.46 lakh claims for Rs 36,003 crore within the final 22 months (until February 4) from individuals affected by the coronavirus, with claims price Rs 4,300 crore coming within the final 4 months.
    Of this, insurers have settled 25.53 lakh claims for Rs 23,595 crore up to now because the Covid pandemic started in March 2020, in line with figures compiled by the General Insurance Council. Companies have repudiated 1.98 lakh claims for Rs 1,459 crore up to now. Maharashtra reported the utmost variety of claims at 9.3 lakh for Rs 9,637 crore, adopted by Gujarat with 3.44 lakh claims for Rs 4,345 crore, and Tamil Nadu with 2.85 lakh claims for Rs 4,144 crore. Insurers settled 8.46 lakh claims for Rs 6,511 crore in Maharashtra.
    The common measurement of the Covid declare on the all- India stage works out to Rs 1,26,467 whereas the scale of the settled declare per particular person isRs 92,411. Indicating poor well being cowl penetration, insurers acquired solely 93,386 claims for Rs 701 crore from Kerala, which stories essentially the most Covid instances now. The common measurement of the declare settled per particular person in Kerala can be one of many lowest at Rs 57,294. Uttar Pradeshaccounted for the utmost quantity settled per particular person at Rs 1,24,720.
    Telangana reported the very best common per particular person Covid declare of Rs 183,670.
    However, within the backdrop of falling incomes due to medical exigencies or job losses, many Indians are cutting down the protection of their medical health insurance insurance policies in a bid to save lots of on the premium quantity expended. “Adding to this alarming trend is the fact that nearly 30 per cent of the Indian population remain uninsured and you have a dangerous situation that is detrimental to our country’s goal of achieving Universal Health Coverage (UHC) by 2030,” mentioned Satish Gidugu, CEO & whole-time director at Medi Assist Healthcare Services.
    “To reverse this course, it is imperative that tax paying citizens are incentivised to opt for a higher health insurance cover while thegovernment focuses on its slew of initiatives aimed at the bottom 50 per cent of India’s population,” Gidugu mentioned.
    On most insurance coverage merchandise, the GST price is eighteen per cent, which thrusts the premium to 118 per cent for the end-user. The abolition or a minimum of a sizeable discount within the GST on all private strains of merchandise — from 18 per cent to five per cent will encourage extra individuals to purchase medical health insurance, mentioned ManipalCigna Health Insurance, CFO Srikanth Kandikonda.
    Insurance corporations mobilised Rs 54,235 crore as well being cowl premium throughout the nine-period ended December 31, 2021, an increase of 28.78 per cent from
    Rs 42,113 crore in the identical interval of final 12 months. Of this, mobilisation by way of retail insurance coverage cowl rose to Rs 20,995 crore. Public sector New India Assurance collected Rs 12,050 crore as well being premium throughout the nine-month interval, as towards Rs 8,212 crore in the identical interval a 12 months in the past.
    Gidugu mentioned there is a chance to cut back the GST charges on medical health insurance premiums, permit enter credit score on GST paid in direction of worker medical health insurance and get rid of perquisite tax utterly on worker medical reimbursements. This will create a major affect on the general adoption of medical health insurance.

  • Covid fuels 29% bounce in well being premium earnings for insurers

    Covid pandemic has proved to be a boon for insurance coverage corporations. With individuals more and more taking well being cowl to fulfill medical bills, basic insurance coverage corporations have reported a 29.81 per cent rise in premium earnings from the well being phase to Rs 42,571 crore through the seven-month interval ended October 2021.
    This is sort of double the expansion of 14.3 per cent at Rs 32,796 crore witnessed in the identical interval of final 12 months, when individuals spent more often than not indoors below a nationwide lockdown. Health premium earnings shot up by a document 34 per cent to Rs 5,463 crore within the month of October alone, based on figures launched by insurance coverage regulator IRDAI.
    Industry sources say that demand from the retail phase is rising at a sooner tempo as demand for particular person well being insurance policies is rising quickly. The premium progress of standalone well being insurers continues to be increased than trade common, indicating that retail premiums are rising sooner than the group enterprise because the standalone well being insurers derive most of their premiums from the retail phase. Standalone well being gamers reported a 37.85 per cent rise in premium earnings at Rs 10,500 crore through the 7-month interval.
    The fast rise in well being insurance policies is being led by public sector New India Assurance which reported a 53.23 per cent rise in premium earnings to Rs 9,176 crore in seven months as towards Rs 5,988 crore a 12 months in the past. The firm reported a 135 per cent bounce in premium earnings to Rs 1,327 crore in October alone, based on Irdai.
    Overtaking motor insurance coverage phase which was the highest premium incomes sector until final 12 months, medical health insurance has been the principle drivers of the non-life insurance coverage trade for the reason that graduation of the Covid-19 pandemic in early 2020. The well being phase has elevated its market share from 25.8 per cent final 12 months to 33.7 per cent within the first seven months of FY22.

    Simultaneously, well being claims by prospects have additionally shot up with all insurers reporting increased claims within the wake of Covid pandemic. ICICI Lombard General Insurance, for instance, reported that the influence of Covid claims on well being guide within the first half of FY2022 was Rs 561 crore as towards Rs 115 crore in the identical interval of final 12 months. While Covid infections have declined within the nation within the final just a few weeks, insurance coverage corporations have reported 25.64 lakh claims for Rs 31,624 crore from individuals hit by Covid until September 2021. Maharashtra registered the utmost variety of claims at 8.47 lakh for Rs 8,650 crore adopted by Gujarat with 3.24 lakh claims for Rs 3,793 crore, Karnataka 2.53 lakh claims for Rs 2,712 crore and Tamil Nadu 2.41 lakh claims for Rs 3,447 crore. Although the typical declare quantity per particular person throughout the nation was Rs 1.23 lakh, the typical declare settled per particular person was Rs 91,287.
    Although Covid-19, particularly the second wave, was very damaging to the medical health insurance phase by way of a giant spike in claims, it accelerated progress for the phase. Insurers have additionally hiked the premium on well being insurance policies and began demanding even vaccination certificates and stringent medical check-ups earlier than issuing new insurance policies. “With Covid pandemic under control, claims are expected to come down in the near future. The segment will then become a profitable area for insurance firms. It remains to be seen how long the high growth in this segment will continue,” stated an trade supply.
    The total progress within the basic insurance coverage phase was 12.54 per cent at Rs 1.26 lakh crore through the seven months ended October 2021.