Flood damages add up

Textiles, chemicals and pharmaceutical companies have suffered the most damage in the recent floods that hit Gujarat, inundating godowns and factories storing raw materials and finished commodities.

Insurance companies did not wish to comment on the total number of claims filed so far filed or the size of claims made by affected units. Industry sources said claims filed already would be in excess of Rs 100 crore, with many more yet to be filed. Claims would also be filed by privately run commodity houses.

Small and medium textile units in Surat alone had so far filed claims worth Rs 56.48 crore. Big units like Ginni Silk Mills and Grasim Industries were yet to finalise claims, they added.

For example, Grasim's manufacturing plant was at Kim near Surat, where floods were devastating. Units there reported damage to machinery, raw materials and finished goods as flood waters rose very rapidly.

The pharmaceutical belt at Daman, Silvassa and Bharuch also experienced heavy flooding and claims filed with insurance companies were likely to be large, said a source in Indian Drug Manufacturers' Association.

Pharma and chemical units inside the Guajrat Industrial Development Corporation's (GIDC) estate at Panoli near Ankleshwar were worst-hit. The many small players located between Bharuch and Vapi were hit too.

"However, a substantial number of the small chemical and bulk drug manufacturing units are not covered under flood insurance while the bigger ones are now on final assessment of damage. We expect the total claim amount in Ankleshwar-Vapi industrial belt itself would be over Rs 250 crore," said a source in GIDC. Claims also have started flowing in from units on the outskirts of Ahmedabad city which was hit by a flashflood.

The total damage caused by the rains in Surat is believed to be several hundred crores of rupees. The textile industry in Surat alone was estimated to have suffered damages in excess of Rs. 300 crore.

Till Thursday afternoon, insurance companies had received over 1500 damage claims from Surat city and district. Some claims were settled promptly by insurance companies.

Surat district collector Pankaj Joshi on Thursday held meetings with representatives of New India Assurance, United India Assurance, Oriental Insurance, Iffco-Tokyo General Insurance, Bajaj Allianz General Insurance and other companies and requested the insurance companies to expedite settlement of claims filed by units in Surat city and district by the end of August.

The insurance companies assured the collector that damage claims would be settled.

Talking to Business Standard, Pankaj Joshi said, "The industries have suffered huge losses because of the rains and floods. It is in interest of the local industries that I have asked the insurance companies to expedite work for settlement of claims."

New India Assurance received claims worth Rs 20.23 crore from the textile industry alone. United India received claims worth Rs 14 crore and Oriental Insurance another Rs 2.50 crore, while National Insurance had claims worth Rs 9 crore on its hands.

Iffco-Tokio General Insurance has so far received claims worth Rs 5 crore while Bajaj Allianz had claim papers worth Rs 2.51 crore.

Claims with Reliance General Insurance from the textile industry alone were worth Rs 1.54 crore. ICICI Lombard faced claims of Rs 1.70 crore, said a source in Surat district collectorate.