Life Insurance: Relief to insurance companies hit by Covid, claims reduced by Rs 19 thousand crore

Life Insurance: Relief to insurance companies hit by Covid, claims reduced by Rs 19 thousand crore

Insurance Claim: Life insurance companies had suffered huge losses due to Corona. Due to the deaths during the Corona period, he had to pay a large number of claims. However, now these companies have got relief. Due to deaths due to Covid-19, insurance companies had to pay approximately Rs 60,821.86 crore to the families of the deceased in the financial year 2022. However, in the financial year 2023, this figure has reduced by Rs 19,000 crore to Rs 41,457 crore. 

IRDA released report 

According to insurance regulator IRDAI, life insurance companies had to pay a total of Rs 4.96 trillion during 2022-23. This is about Rs 6000 crore less than the payment of Rs 5.02 trillion in the previous financial year. According to the annual report of IRDA, after Covid, the number of deaths and related claims in the country has decreased rapidly. 

Corona hit in the financial year 2022 

According to IRDA, Covid-19 had badly hit the insurance industry during the financial year 2022. Insurance companies had to settle claims worth more than Rs 60 thousand crore during this period. This number has also reduced significantly in the financial year 2023. In the financial year 2022-23, companies paid Rs 1.98 trillion towards surrender and withdrawal, which is 26 percent more. The share of public sector companies in this amount was 56.27 percent. 

Decreased claim settlement ratio 

The annual report states that out of the total 10.76 lakh death claims during the year 2022-23, life insurance companies paid 10.60 lakh. Its total amount was Rs 28,611 crore. At the end of the year, 833 claims worth Rs 350 crore were still not settled. The claim settlement ratio of public sector insurance companies was 98.52 percent till March 31, 2023. On March 31, 2022, this figure was 98.74 percent. The claim settlement of private sector insurance companies was 98.02 percent during 2022-23 whereas it was 98.11 percent during the previous year. The claim settlement ratio of the insurance industry declined from 98.64 percent in 2021-22 to 98.45 percent in 2022-23.

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