courtesy: indianexpress
Kotak Mahindra Bank, the private sector lender, on Thursday said its life insurance arm expected to incur a loss of up to Rs 275 crore for the quarter that ended June 2021 due to high fatalities in India during the second wave of COVID-19. In a regulatory filing, Kotak Mahindra Life Insurance Company said that due to the increased claims and higher mortality related provisioning arising an account for the second wave, the company also expected to incur a loss for the quarter that ended June 2021 in an estimate range of Rs 225 to Rs 275 crore on the shareholders account.
The company also said that the provisioning going forward would depend on the trends in mortality. A private insurer said that the company continued to have a strong capital and solvency position.
Kotak Mahindra Life Insurance Company said that the foregoing extraordinary development and its potential impact were discussed at a meeting of its board on the June 16, 2021.
Kotak Life Insurance Company is one of the fastest growing insurance companies in India, covering over 30 million lives nationwide, as of September 30, 2020.
Life insurance claims had spiked even before the second wave. The life Insurance Corp., the nation’s largest life insurance has seen the number of deaths claims jump to 21 per cent in the year April and December 2020.