Insurance premiums collected under various COVID-19-specific policies stood at ₹1,307 crore for an insured sum of ₹13.6 lakh crore up to May 15, 2021
Indian insurers received 22,205 death claims worth ₹1,644 crore during 2020-21 where the demise was due to COVID-19, the Reserve Bank of India (RBI) said in its bi-annual Financial Stability Report (FSR) on Thursday.
The industry settled 21,854 death claims of these amounting to ₹1,492.02 crore, it said adding that there was no significant impact on the financials of life insurers.
The claims paid ratio (provisional) stood at 98.1 per cent for individual claims and 98.6 per cent in the group category, in comparison with 96.8 per cent and 97.3 per cent, respectively, for the previous financial year, it said.
"...the pandemic did not have a significant impact on death claim settlement rates," it said.
Insurance premiums collected under various COVID-19-specific policies stood at ₹1,307 crore for an insured sum of ₹13.6 lakh crore up to May 15, 2021, the report said.
New business premiums pertaining to life insurance picked up sharply in March, after plunging in the third quarter of 2020-21, it said.
On the government proposal of having a bad bank to store lenders' dud assets, the RBI's report said the new entity's success will depend on design aspects like fair pricing, complete segregation of risk from selling banks, investment of external capital, independent and professional management of the new entity, minimising moral hazard and adequate capitalisation.
Meanwhile, the FSR said the RBI has selected "MSME (micro, small and medium enterprises) lending" as the theme for the third cohort at its regulatory sandbox after devoting the first two cohorts to retail payments and cross border payments.