The Life Insurance Corporation of India (LIC) saw a nearly 20% drop in death claims in the first quarter of FY2022-23, with the COVID-19 impact seen to be fading. However, officials stated that the amount is still higher than pre-2020 levels.
The settlement of death claims in the June quarter of FY 2021-2022 was 7,111 crore, compared to 5,743 crores in the first quarter of this year, according to LIC Chairman M R Kumar in a post-earnings call with analysts.
“So there is quite a decrease, and it’s quite obvious that whatever decrease was there based on COVID is gone now, Q1 to Q1 of the previous year,” Kumar said.
According to LIC Executive Director Dinesh Pant, claim rates were very stable prior to the pandemic, but there was a spike in claims in the last two years due to COVID-19.
“We expect it to return to normalcy in the current quarter (ending September 30, 2022). It is still not back to pre-2020 figures because we understand that the effects will take time and that some IBNR (Incurred But Not Reported) cases will be reported late as well “Pant stated.
On the back of record premium income, LIC’s net profit increased to 682.88 crores in Q1 FY23 from 2.94 crores the previous year.
