Insurance cos likely to see uptick of claims ratio by 8 per cent to 10 per cent due to COVID-19: Pankaj Arora
COVID-19 outbreak has made the entire world realise that medical exigencies are unpredictable and can cause a financial upheaval that is tough to handle. Due to COVID-19, people have understood the significant of maintaining a healthy life style and also have understood the need of having insurance cover for themselves and their family members. In a first of its kind, we have seen health insurance segment take over motor insurance as on September 2020 which has made it emerge as the largest premium segment under general insurance in India.
As mentioned, it has happened first time in India that health insurance segment overtook the motor segment. At the same time the claims are also increasing due to COVID-19 pandemic.
Till October 5, 2020, claims amounting to INR 5,400 crore are already reported and out of which INR 2,175 crore are already settled for COVID-19 disease. Insurance companies are likely to see uptick of claims ratio by 8 per cent to 10 per cent due to COVID-19.