According to data made available by General Insurance Council of India, 71,423 people claimed $152.78m from insurance companies towards treatment of COVID-19 up to the last week of July 2020.
Until 22 June, only 20,965 claims for $43m were made with the insurers. This marks a spurt of over 240% in claims for treatment of COVID-19 over the previous month.
Despite this surge, health insurance claims received so far amount to just 4.08% of the total number of people infected with the virus so far (17,50,000 cases as of 1 August) The average claim per person works out to INR160,000 ($2,125).
In case of life insurance, the Life Insurance Corporation of India (LIC) received only 561 COVID-19 death claims amounting to $3.75m until the end of July. India has registered over 38,000 deaths due to COVID-19 as of 3 August.
“LIC has always been proactive in settling death claims. Death claims arising due to COVID-19 are treated on par with other causes of death and payments are being made on an urgent basis,” LIC said in a recent statement.
The average size of health cover across the industry is around INR200,000. In COVID-19 cases the entire family is at risk, hence, very often the health insurance cover is inadequate to cover the cost of treatment.