The Insurance Regulatory and Development Authority of India has taken stock of the Covid preparedness of life and health insurance companies as a precautionary measure.

This comes amid the increasing trajectory of Covid19 cases being noted globally which prompted the government to revise the guidelines for international arrivals last week.

Industry sources told The Telegraph that IRDAI at a stakeholder meeting had discussed multiple issues with the insurance companies that include steps being taken by the companies to put in place Covid emergency teams for operations and business continuity, engaging with hospital networks for faster claims settlement and telemedicine support.

The regulator has also appraised the capital situation of the insurance companies.

The regulator has further advised the insurance companies to create more awareness about the preventive measures related to Covid and vaccination benefits amongst its policyholders and the public at large.

With insurance companies now being given more liberty to develop their own products under the ‘file and use’ procedure, the possibility of developing covers and discounts that can benefit those vaccinated was also discussed.

IRDAI has also checked with the insurance companies on the applicable fraud control measures and the steps taken by the industry to report an accurate number of claims.

The insurance companies, in turn, have requested the regulator on the possibility of standardisation of pricing of certain commonly used products such as PPE kits whose variations could influence policy pricing.

Covid-19 had a major impact on the insurance industry with over 2,25,219 death claims being settled cumulative up to March 31, 2022, amounting to Rs 17,269 crore.

The health insurers settled 26,54,001 claims amounting to Rs 24,362 crore.

However, the pandemic has also resulted in more awareness about insurance reflected by a 12.98 per cent growth in new business premium by life insurers and an 11.06 per cent growth in domestic gross direct premium by general and health insurers in 2021-22.