Coronavirus Insurance Policy Claim; Companies Profits Impact Amid COVID 2nd Wave | Tremendous increase in Kovid claims, its effect on the profits of companies


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  • Coronavirus Insurance Policy Claim; Companies Profits Impact Amid COVID 2nd Wave

Mumbai6 hours agoAuthor: Ajit Singh

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  • HDFC Life Insurance paid for 70,000 claims
  • ICICI Prudential Life has set aside Rs 498 crore for the claim

The second wave of Kovid has started taking a toll on companies in both life insurance and non-life insurance sectors. Kovid claims are coming to companies fiercely. This has adversely affected their profits in the April-June quarter.

HDFC Life Insurance profit reduced by 33%

HDFC Life Insurance has made a profit of Rs 302.25 crore in the June quarter. Its profit was Rs 451.09 crore in the same quarter a year ago. That is, a decrease of 33%. The company has received 3 to 4 times more claims in the second wave than in the first wave of Corona. This claim is for both sickness and death. It has paid for 70,000 claims in the first quarter.

Gross claim stood at Rs 1,598 crore

Claims worth Rs 1,598 crore under gross claim and Rs 956 crore under net claim have been paid. Based on the current claim, it has set aside Rs 700 crore, so that if any claim comes, its payment can be given. Its premium had increased by 31%. It was Rs 7,656 crore in the first quarter as against Rs 5,863 crore in the same period a year ago. Vibha Padalkar, MD of the company says that due to our strong balance sheet and surplus, there was no problem in paying more claims.

ICICI Prudential Life also suffered a loss of Rs 186 crore

Similarly, ICICI Prudential Life also incurred a loss of Rs 186 crore in the first quarter. The company had made a profit of Rs 288 crore in the same quarter a year ago. It has set aside Rs 498 crore for the claim of Kovid-19. Company’s MD N.S. Kannan said that despite the challenges of the second wave of Corona, we are excited about the growth. We have made good growth in the June quarter.


71% growth in new business premium

Its new business premium grew 71% in the June quarter. It has been Rs 2,559 crore. The company had received claims worth Rs 500 crore in the June quarter. Its Asset Under Management (AUM) has been Rs 2.33 lakh crore. AUM is the total premium paid by the policyholders to the company.

SBI Life Insurance benefit may drop by 40%

Brokerage house ICICI Direct has estimated that SBI Life Insurance may have a profit of Rs 403 crore in the June quarter. It may remain 24% lower than March. Motilal Oswal has said that its profit is expected to be Rs 318 crore. There may be a decrease of 40.3% compared to the March quarter.

effect on stocks

On the other hand, the share of ICICI Prudential has fallen from Rs 635 to Rs 604 in a month. The share of HDFC Life has come down from Rs 731 to Rs 662 while that of SBI Life has fallen from Rs 1,060 to Rs 1,015 during this period.

19.11 lakh claims companies received

Insurance regulator Insurance Regulatory Development Authority of India (IRDAI) member T.L. Almelu said that till June 22, a total of 19.11 lakh COVID health claims were received by general insurance companies. Out of this, more than 80% i.e. 15.19 lakh claims were settled. Under this, a total amount of Rs 15,000 crore was given. It had both medical insurance or hospitalization claims.

55,276 claims were received in life insurance

He said that a total of 55,276 claims have been received by Life Insurance under death claims. Of this, 88% or Rs 3,593 crore has been paid to 48,484 claims. According to him, if all goes well, the insurance industry will grow at 40-50% in the next 4-5 years. Even if all is not well, there can be a growth of 20-25%. Insurance companies are still reserving money for this in the hope of getting more claims, that is, making as much provisioning.

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