In the June quarter of the previous financial year, the settlement of death claims stood at Rs 7,111 crore as against Rs 5,743 crore for the first quarter of this year, LIC Chairman MR Kumar said in a post-earnings call with analysts.
Kumar said, “Therefore there has been a considerable shortfall, and it is quite clear that whatever the shortfall was, it was on the basis of COVID…
The claim rate was very stable before the pandemic, said dinesh pantExecutive Director and Appointed Actuary, life insurance corporation (LIC).
He said there has been an increase in claims due to COVID in the last two years.
“Now, from the current quarter (ending September 30, 2022), we see this settling towards a more normal one. It is still not back to pre-2020 figures as we would appreciate that The impacts will take some time and there will be some IBNR (incurred but unreported) cases which will be reported of late,” Pant said.
The official said that these issues seem to be resolved now and the COVID impact appears to be less threatening.
“So we are optimistic that in the next one year or so, it should come down to the pre-COVID level,” Pant said.
For Q1 FY23, LIC’s net profit rose to Rs 682.88 crore as against Rs 2.94 crore in the year-ago period on the back of record premium income.