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Life insurance companies see 5-10x surge in Covid claims in April


Life insurance companies see 5-10x surge in Covid claims in April
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Life insurance companies see 5-10x surge in Covid claims in April
TNN / Updated: Jun 14, 2021, 09:01 IST
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MUMBAI: The second wave of Covid has pushed up claims for life insurance companies by 5-10 times for April 2021. This follows 1.9 lakh Covid-related deaths since April 1, 2021, which is 17% higher than lives lost to the pandemic in the entire FY21.
“Life insurers, while making Covid reserves last year, assumed 50–100% higher Covid-related deaths for FY22. Our analysis shows that reserves made by them can cover 1.5–2x the Covid-related deaths in FY21,” said a report by Macquarie. ....

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Will life, general insurance stocks survive Covid-19 death claims and taxes?

Life insurers paid out covid-related claims worth Rs 1,986 crore in 2020-21. In 2019-20—a normal year—aggregate death claims paid by life insurers stood at Rs 18,042 crore. The total death claims paid for in 2020-21 are not known yet, but numbers reported by individual insurers reveal a lot. ....

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