|Subrata Panda / Mumbai March 01, 2021
Health insurance companies’ claims for Covid-19 are increasing, although the pace of growth is lower than in the August-December period. According to data collected by the General Insurance Council, till February 25, general and single health insurance companies received 9,08,849 claims related to Covid, amounting to Rs 13,752.41 crore. These figures are not publicly available.
Insurance companies have so far settled 7,61,676 claims amounting to Rs 7,141.33 crore. This amount is about 15 percent of the total health premium collected by the insurers as of January. Overall, of the claims received so far, the insurers settled 84 percent in terms of numbers and 52 percent in terms of sums. At the end of July, insurers received only 81,000 claims of Covid-19. This number doubled in a month. At the end of August, insurers had received 160,000 claims of Covid-19. By the end of October the number of Covid-19 claims had crossed 4,75,000 and by mid-November the number had crossed 5,76,000. The total number of Covid claims received by insurers in early December reached 6,64,488, amounting to Rs 9,989.89 crore.
The average of claims received by the insurers is around Rs 1.51 lakh while the claims settled by the insurers so far is an average of Rs 93,758.17.
Bhavatosh Mishra, director of product and claim risk marking at Max Bupa Health Insurance, said, “We are now getting fewer Covid-19 claims compared to the August-December period.” The number of cases of Covid has been drastically reduced but the number of claims that insurers are receiving is not decreasing in the same way as a significant portion of our claims also come in the form of reimbursement. Overall, this is a very good situation compared to the high level seen in the period from September to December. ” And now we are getting more reimbursement claims than new cashless claims, ” he said. Interestingly, this is one of the reasons for the difference between the number of claims received and the number of claims settled.
Insurers are unsure of the number of claims of Covid-19, as cases are increasing in some states while the government has also started a vaccination campaign. With this, insurers are still evaluating the impact of the heavy burden of Covid claims on the loss ratio in the health portfolio. The reason for this is that while a large number of Covid claims were received, some claims like accident claims were far below normal.