Life insurers’ payout losing steam
image for illustrative purpose
Choking On Growth
- Payout by life insurers fell by Rs6,000cr in FY23
- Out of 10.76 lakh total death claims, life insurers paid 10.60 lakh death claims
- Claim settlement ratio of pvt insurers was 98.02%
New Delhi: Payout by life insurance companies declined by about Rs6,000 crore during 2022-23 because of lesser number of death claims as compared to previous financial year which was impacted by Covid-19.
The life insurance industry paid a total benefit of Rs4.96 lakh crore in 2022-23 as compared to Rs 5.02 lakh crore in FY22, according to the latest annual report released by sector regulator IRDAI. During FY22, the year hit by Covid-19 wave, the insurance companies paid Rs 60,821.86 crore as death claims.
This came down by Rs19,000 crore to Rs41,457 crore in 2022-23. The benefits paid on account of surrenders/withdrawals increased by 25.62 per cent to 1.98 lakh crore in 2022-23, of which public sector insurers accounted for 56.27 per cent. During the year, out of the total surrender benefits, it said, benefits for ULIP (unit-linked insurance plans) accounted for 62.51 per cent for private insurers and 1.56 per cent for state-owned life insurers.
