Insurance claims for fatalities caused by COVID-19, which were initially relatively low, have been increasing.
While at first, most claims were for sickness and income protection, claims for death and funeral benefits have since increased to make up the majority, reported The Independent Online.
Product actuary at Sanlam, Petrie Marx, said, “Between March and August 2020, Sanlam Individual Life paid out ZAR144m ($9.5m) in death and funeral claims.
“In August 2020 alone, death and funeral claims related to the coronavirus were double the amount paid out for the period March to July.”
Head of strategic finance at Momentum Metropolitan, Mr Cobus Rothman, said, “In line with the increase in nationwide reported deaths we have observed an increase in mortality claims during the first and the second waves of infections.
“At our year-end financial results in September 2020, we announced that we have set aside funds to provide for the increase in claims. Deaths of young professional people have been in the minority, with most national deaths in the higher age brackets,” said Mr Rothman.
With a national death toll of over 41,000 since March last year, life insurance companies in South Africa have paid out hundreds of millions of rand in claims from clients who died from COVID-19.