The Insurance Regulatory and Development Authority of India (IRDAI) has said life insurance claims have been made for just 14 percent of deaths due to COVID-19. India has recorded 3.91 lakh COVID-19 related deaths, out of which only 55,276 life insurance claims have been received, as per the apex insurance regulatory body.

According to a report by the Indian Express, L. Alamelu, member (non-life), IRDAI, said, “Out of the 55,276 claims, over 88 percent or 48,484 claims amounting to Rs 3,593 crore have been settled.”

Health insurance companies have also settled over 80 percent of the health insurance claims related to COVID-19. A total of 19.11 lakh health insurance claims were received by companies, out of which 15.39 lakh claims have been settled. The settled 15.39 lakh claims amounted to Rs 15,000 crore as of June 22.

These numbers indicate huge potential for insurance companies in the future. The companies are also well aware of the fact that people spent a good amount of their savings, borrowed or had to sell assets to meet COVID costs.

Keeping in mind these factors, both industry and the regulator have introduced new policies to cater to the demands of new and unprecedented situations while easing the processes and procedures to make it less cumbersome for policy holders. The insurance industry experienced a 9 percent growth last year for both life and non-life and 17 percent growth in the April-May, 2021 period.

Though the need for insurance, be it life or non-life, has increased, the companies may turn coy when it comes to issuing new policies. Sajja Praveen Chowdary, head, term insurance, Policybazaar.com, said, "People who have recovered from COVID-19 will find it difficult to get a term life insurance policy now."

(Edited by : Shoma Bhattacharjee)