Low sum insured, sub-limits give rise to partial payouts: Experts

The data on Covid-related claims collated by the General Insurance Council (GIC) indicate that if a person has a health policy, there is a high probability he will be paid a claim by his insurer. However, the amount he is paid may be lower than his claim. 

According to the GIC data, since the start of the pandemic, general and health insurers have received 1.01 million Covid-related claims, amounting to more than Rs 14,800 crore (until April 10). Of this, they have settled 865,968 claims worth Rs 7,956 crore. While a large percentage of claims has been settled in number terms (85.4 per cent), the percentage settled in value terms is low (53.8 per cent).

Inadequate sum insured