The insurance industry, which safeguards millions of lives and businesses, often faces unwarranted criticism fueled by isolated grievances and sensationalism. Despite these perceptions, its contributions are pivotal. In FY 23-24 alone, the industry settled claims worth Rs 1.72 lakh crore, including Rs 80,000 crore for health insurance, with a claim settlement ratio exceeding 80 percent.
In this regard, Tapan Singhel, Chairman, General Insurance Council and MD & CEO, Bajaj Allianz General Insurance, said that, as per the IRDAI annual report, last year, the General Insurance industry settled crores of claims worth Rs 1.72 lakh crore, out of which it paid more than Rs 80,000 crore towards health insurance.
“Yet those who benefit rarely make the news. On the flip side, isolated grievances and odd bad experiences become the face of the industry. Social safety nets like Ayushman Bharat, covering 55 crore beneficiaries, and the Pradhan Mantri Fasal Bima Yojana, which disbursed Rs 1.64 lakh crore in claims over eight years, prevent poverty and support vulnerable populations. Without the insurance industry’s support, the scheme would not be in place or effective in states adopting an insurance or hybrid model. Insurance also underpins critical sectors, mitigating financial risks in agriculture, motor, and disaster recovery, and ensuring economic resilience,†said Singhel.
Notably, Singhel mentioned the industry boasts an impressively low grievance ratio of 0.003 percent against 2.96 billion policies and actively combats fraud, detecting Rs 1.73 lakh crore in fraudulent claims over five years.
“Contrary to the belief that insurers generate massive profits, the industry operates at a loss, with a combined ratio of 115 percent, paying Rs 115 for every Rs 100 earned in premiums. Employing over 6 million people, insurance is a cornerstone of economic growth. While improvements are possible, insurance remains essential for societal progress, demanding constructive engagement rather than destructive criticism. Without it, the social and economic consequences would be dire,†added Singhel.
