Money & Banking

Covid claims: Kotak Life Insurance expects ₹275-cr loss in June quarter

Our Bureau Mumbai | Updated on June 17, 2021

The second wave has led to an unprecedented increase in fatalities

Private sector lender Kotak Mahindra Bank has said its life insurance subsidiary expects to incur a loss of up to ₹275 crore in the quarter ended June 30, 2021 due to increased Covid claims.

“Due to increased claims and higher mortality related provisioning arising on account of the second wave, the company expects to incur a loss for the quarter ended June 2021 in the estimated range of ₹225-275 crore,” Kotak Mahindra Bank said in a regulatory filing about Kotak Life Insurance.

“The second wave of Covid-19 has led to an unprecedented increase in fatalities in the country and consequently death claims reported to the company from May,” Kotak Life Insurance said, adding that the issue was discussed at its board meeting on June 16.

The provisioning going forward will depend on the trends in mortality, the private sector insurer said, adding that it continues to have a strong capital and solvency position.

Published on June 17, 2021

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