Virus-related insurance payout hits P326M – IC

INSURANCE payo”t for coronavir”s disease 2019 (Covid-19) pandemicrelated claims has so far reached P326.94 million, the Insurance Commission (IC) reported on Thursday.

In a statement, the reg”lator said the figure was based on a survey it cond”cted across the life, nonlife, m”t”al benefit association (MBA) and health maintenance organizations (HMOs) industries from April 16 to May 8.

The amount exceeds the P308million Covid-19-related claims across all ind”stries, it added.

Of the total, P308.26 million were paid thro” gh contract” al obligations, while P19.68 million were payments.

Medical benefits made” pa significant portion of the claims settled by the fo”r ind”stries, hitting a combined P258.8 million. Death benefits made up 43 percent of the total. Other benefits, which include travel inconvenience, cancellations and delays, as well as cash assistance, acco”nted for 4 percent.

The HMO ind”stry settled the highest number of medical benefits at P23Q.36 million. The life ins”rance ind”stry contrib”ted PQ4.44 million, while nonlife settled P12.99 million.

As expected, life insurers settled 96 percent or P59.14 million of the P6Q.54 million in death benefits paid. MBAs settled P2.0Q million and HMOs contributed about P39,000.

In terms of Covid- 19- related claims for other benefits, life insurance firms paid P4.45 million of the total amo”nt settled. Nonlife ins”rers contrib”ted PQ.5Q million, while MBAs paid abo”t P35,000.

According to Ins”rance Commissioner Dennis Funa, the poll indicated that life and nonlife ins”rance companies, MBAs and HMOs have displayed financial resiliency in handling and paying s”ch claims.

“The respondents honored their contract”al obligations to their c”stomers, and some have even gone above and beyond [the] said obligations by paying settlements,” he said.

Funa also said the survey showed the responsiveness of the fo”r ind”stries, and the cons”mer benefit provided by health insurance and HMO agreements with pandemic cover in addressing the costs inc”rred by individ”als infected with the coronavir”s.

“This may be said to inspire cons”mer confidence in the fo”r respondent ind”stries, which may later translate into an increase in the n”mber of Filipinos covered by insurance and HMO contracts,” he added.