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Picture: 123RF/PITINAN
Picture: 123RF/PITINAN

Covid-19 infections and related complications resulted in life insurer Bidvest Life recording the highest number of claims in its 27-year history in 2021.

The insurer’s newly released claims report showed claim volumes increased by 44% in 2021 compared with 2020.

Covid-19 infections and complications were the main reasons for the spike, says Nic Smit, acting chief product and pricing actuary.

Smit said 92% of all claims paid in 2021 were for income protection benefits.

Life cover was responsible for 4% of claims, and critical illness 2%.

Nearly two-thirds (63%) of claims were made by people under the age of 45, and fractionally more males (54%) than females (46%) claimed for income protection.

The youngest policyholder to claim an income protection benefit was 18 — a high school student who sustained a rugby injury.

This was his second claim.

“The occupations that claimed on income protection benefits last year reflected a mix of self-employed people, commission earners, contracted and salaried individuals, with business owners (29%) and fitness professionals (26%) being the top claiming occupations,” said Smit.

Minor infections were the leading cause of income protection claims, accounting for 58% of all claims paid in 2021.

Most of these were due to Covid-19, with Covid-related claims increasing from 24% of claims in 2020 to 46% in 2021.

Mental health issues, largely due to anxiety, burnout and depression, were the fourth-most common reason for claiming on income protection.

“Our claims report showcases the power of income protection as part of our drive to educate SA customers, many of whom are largely unaware such a product even exists,” said Smit.

Advisers were the second highest claiming occupation for income protection in 2021.

The insurer said it paid 92% of all income protection claims made in 2021.

The leading cause of nonpayment was that clients tried to claim under their income protection policies while still within their waiting period. In income protection terms, the waiting period is the number of days a policyholder must be sick or unable to work before a claim will start paying.

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