BackLIC witnesses 20% decline in death claims in Q1 FY23 as COVID-19 impact recedes
In the June quarter of FY 2021-2022, the settlement of death claims was to the tune of ₹7,111 crore, which for Q1 of this year was ₹5,743 crore.
PremiumThe Life insurance Corporation of India (LIC) witnessed a decline of nearly 20 per cent in death claims in the Q1 FY2022-23 with the COVID-19 impact seen to be ebbing. However, the amount is still higher than pre-2020 levels, officials said.
In the June quarter of FY 2021-2022, the settlement of death claims was to the tune of ₹7,111 crore, which for Q1 of this year was ₹5,743 crore, LIC Chairman M R Kumar said in a post-earnings call with analysts.
"So there is quite a decrease, and it's quite obvious that whatever decrease was there based on COVID... going away now, Q1 to Q1 of the previous year," Kumar said.
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LIC Executive Director Dinesh Pant said that the claim rates had been very stable before the pandemic, adding that there was a spike in claims in the last two years due to COVID-19.
"Now, from the current quarter (ending September 30, 2022), we see it settling down towards more normal. It is still not back to pre-2020 figures because we would appreciate that the effects will take some time and there will be some IBNR (Incurred But Not Reported) cases which will get reported late also," Pant said.
He was of the opinion that these issues seem to be settling down now and the COVID effect seems to be less threatening.
"So we are optimistic that over the next year or so, this should settle down to the pre-COVID level," Pant said.
LIC's net profit jumped to ₹682.88 crore in Q1 FY23 as against ₹2.94 crore in the year-ago period on the back of record premium income.
With PTI inputs.
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