Health insurance average claim size higher during second wave; are you ready for third wave?

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The intensity of the pandemic has increased the covid related health claims made during the second wave compared with the first wave. According to the latest data from PolicyBazaar during the second wave between April and June 2021 Covid claims constituted 48% of total reported claims against 33% during the first wave between April 2020 and August 2020. The average claim settlement amount also jumped up by 9% from Rs1,51,575 to Rs Rs164701 during the second wave. However, during the pre covid second wave, which was the period between January 2021 and March 2021, the claim ratio reduced to 14%.

While the number of Covid cases has reduced compared to the peak of June, the insurance industry continues to witness a growing number of claims. The industry-wise data shows that insurers have settled 16.4 lakh Covid claims so far this year by July with a number of outstanding claims standing at 3.24 lakh. What is interesting is the number of reported claims jumped by 22% to 20.38 lakh in July compared to 16.6 lakh cases in June. Experts say the jump in reported claims in July may have been due to people claiming reimbursements.

With the rise in the number of reporting claims, it is important to have a health insurance policy with an adequate sum insured. Without having adequate health insurance you always run the risk of using your life savings in one single hospitalisation. Having a policy gives peace of mind in case of any medical emergency in future.

How to prepare for the third wave?

Given the rise in Covid claims, experts say it is essential to buy a health insurance policy with an adequate sum insured. This is important when coronavirus infection treatment cost is running into lakhs of rupees for a 10-14 days stay in the hospital. Moreover, many patients suffered from mucormycosis after the treatment. In such cases having a health insurance policy can help in paying off the medical bills, as both get covered under the basic mediclaim policy.

If you already have an insurance policy then increase the cover to around Rs 25 lakhs. If you don’t have one buy immediately as the companies have already started talking about increasing health insurance premiums given the rise in the number of claims.