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It is almost seven months since the novel coronavirus has entered India. The pandemic has spread in the country so intensely that almost every state is affected by it. States like Maharashtra, Tamil Nadu, and National Capital Regin have the highest number of patients suffering from COVID – 19 and the general insurance companies are witnessing a flood of health insurance claims.
Till July 2020 end, the non-life insurance companies like Tata AIG General Insurance Company has received approximately 80, 000 claims for coronavirus amounting Rs.1, 300 Crore.
The claims are constantly increasing the arising of coronavirus. According to the reports of Financial Express, the non-life insurance providers have received 9, 700 claims with the amount of Rs. 150 Crore till the first week of 2020 June. Later, in the second week of June 2020, these claims have touched the trolling of 18, 100 amounting Rs. 281 Crore. In continuation of this, the claims have surpassed Rs.500 Crore.
As per the figures compiled by the Council of General Insurance, the highest claims came from Maharashtra in July end. Delhi and Tamil Nadu have reported approximately 9, 300 and 9, 500 respectively by end of July 2020. As per the Ministry of Health and Family Welfare, in India, there were 5.86 active cases as of 4th August 2020. Approximately 12.30 lakh cases were discharged and around 38, 938 were died because of this ongoing pandemic.
A senior officer of a non-life insurance company said that the claims are rising at a rapid rate since June 2020 and if the situation continues in this way, then it can be a matter of concern for all non-life insurance providers. With the increasing sale of policies related to COVID-19, they are expecting the claims to go up in the coming days as per this officer. Out of 35, 000 claims in Maharashtra, Mumbai has recorded 12, 000 whereas Thane and Pune have reported 5, 000, and 7, 600 respectively.
The IRDAI (Insurance Industry and Development Authority of India) has asked the general insurance organizations to launch Corona Kavach policy that can provide sum insured from Rs.50, 000 to Rs.2lakh. However, the participants of the market are saying that the two-three days of the month August have shown a slowdown in the registration of claims.
The Head of Health Claims of Bajaj Allianz General Insurance Company, Bhaskar Nerurkar, has said that the claim registration of coronavirus was doubling every 16 days in mid-July. But now the trend is changing, the claim is doubling every 21 days at the start of August.
He further adds that the number of COVID – 19 positive cases is still increasing in India but the growth rate concerning the number of claims is slowing down slightly. He said they have seen that people who are detected positive for coronavirus and are showing mild symptoms are managing themselves at home and this can be a reason for a slow down in claim growth rate in the last few days of August 2020.
The average size of the ticket of COVID – 19 claim is approximately Ra.1 lakh 50 thousand in urban areas and semi-urban places it is between Rs.50, 000 and Rs.75, 000. The places where the patient's condition is serious and requires admission in the Intensive Care Unit, the claims there are between Rs.6 lakh and Rs.8 lakh.
In addition to this, the life insurance companies as well are getting coronavirus claims. The leading life insurance company of India, Life Insurance Corporation of India (LIC) has as well settled the death claims of COVID – 19 in 561 policies that are amounting to Rs.26.74 Crore.
However, if you have not purchased an insurance plan that covers COVID – 19, then you must buy one. Many insurance providers are offering cover for coronavirus and some of these are:
Summing it up:
In this way, with a flood of claims, more and more people are purchasing an insurance plan to get coverage for this virus.