The incurred claims of the overall general insurers too grew at a lower rate of 2.92 per cent compared to 7.26 per cent during financial year 2019-20.
In actual terms, net incurred claims of stand-alone health insurers were Rs 6,779.09 crore during 2020-21. This compared with Rs 6,435.43 crore during 2019-20.
As per the Annual Report 2020-21, the net incurred claims of the general insurers stood at Rs 1.12 lakh crore in 2020-21 as against Rs 1.08 lakh crore in 2019-20. The incurred claims exhibited an increase of 2.92 per cent during 2020-21.
The private sector general insurers, stand-alone health insurers and specialised insurers reported increase of 2.40 per cent, 5.34 per cent and 132.43 per cent respectively over the previous year, while the PSU general insurers reported a decrease in the incurred claims at 4.01 per cent.
Among the various segments, health segment had the highest claims ratio at 89.51 per cent during 2020-21 as against a claim ratio of 85.70 per cent of previous year, the report said.
It further said the new policies issued by stand-alone health insurers at 105.41 lakh, an increase of 14.34 per cent over 2019-20. The growth in issuance of new policies by them was 16.63 per cent.
The report further said the life insurance industry paid benefits of Rs 3.99 lakh crore in 2020-21 (Rs 3.51 lakh crore in 2019-20) constituted 63.42 per cent of the gross premium underwritten (61.35 per cent in 2019-20).
LIC paid benefits of Rs 2.86 lakh.
On death claims, Irdai report said in case of individual life insurance business, during 2020-21, out of the total 11.01 lakh claims, the life insurers paid 10.84 lakh claims, with a total benefit amount of Rs 26,422 crore.
The claims pending at the end of the year were 3,055 for Rs 623 crore.
During 2020-21, life insurers issued 281.27 lakh new policies under individual business, out of which LIC issued 209.75 lakh policies (74.57 per cent) and the private life insurers issued 71.52 lakh policies (25.43 per cent).
The private sector insurers registered a growth of 2.89 per cent in the number of new policies issued against their previous year. LIC and the industry have shown a decline.
This was originally posted here.