Andamans insurance claims on fast track

Insurance companies, especially general insurance companies, are finding new business in the Andaman and Nicobar Islands as tremors continue to rock the area almost every day. People, already traumatised, are now approaching the companies to insure their property from the elements.

It is, however, payout time for these companies. After a high-level meeting with the administration and the Andaman Chamber of Commerce and Industry, United India Insurance Company Limited and New India Assurance have decided to disburse claims modelled on the 'early disposal' method they had adopted after the earthquake in Gujarat nearly four years ago.

An element of irony, however, pervades their business "" the United India office in the heart of the town here was damaged in the December 26 calamity, and the property was not insured.

Regional Manager of United India, Sadasiv Mishra, who has been sent from Kolkata to handle claims in Andamans, told Business Standard today: "While we are working round-the-clock with the assistance of additional manpower from West Bengal and Chennai, we are also witnessing a fast growth in our business over the past few days. People owning commercial establishments and houses are approaching us for insuring their property from earthquake, storm, tempest, floods or any act of God."

Mishra also said so far United India, which has a 90 per cent market share in the general insurance segment in the islands has received over 150 claims worth Rs 3.5 crore and that the figure might cross Rs 5 crore in the next few days.

"Most of the claims are from commercial establishment owners, like hotel owners and shop-keepers. There is also a substantial number of claims filed by vehicle owners. We have already started the survey work before deciding the disbursal amounts and in the next 15 days, it would be commenced as we have decided to follow the model adopted by the insurance companies after the Gujarat earthquake," said Subir Bhattacharya, manager, United India, Chennai.

Saying that the people in the Andamans are still traumatised because of the regular aftershocks, Bhattacharya said: "Every insurance company having its business here has been witnessing a steady growth in new business and we being the market leader, expect to do much better than last year during the next few months. After the earthquake in Gujarat, we had decided to disburse claims within one month and here we have to move as fast. Our offices have begun survey for ships, boats or trawlers under Hull Insurance as claims are pouring in from them as well."

A source close to New India Insurance said that the company had so far received claims worth around Rs 1 crore and like United India, it would settle claims quickly.

"We are getting fresh business queries from ship and boat owners while people owning concrete structures are now ready to pay premium for our earthquake insurance policies," said a company source.

Manoranjan Bhakta, member of Parliament from Port Blair, said: "I have already requested the Centre for speedy settlement of insurance claims and Lieutenant-Governor Ram Kapse has already held a meeting with the insurance companies in this regard. In another 15 days, claim cheques would start reaching the people."

Limping back

Payout time: Most claims are from hotels and shops. Vehicle owners have also filed a substantial number of claims. United India has so far received 150 claims, totalling Rs 3.5 cr

New business: Fresh business queries are coming from ship and boat owners; people owning concrete structures are ready to pay premium for earthquake insurance

Irony of insurance: The United India Insurance office in the heart of Port Blair was damaged by the tsunami; the property was not insured