Insurance industry braces for 'Hudhud' claims

Insurers are busy collecting data from the cyclone-hit areas of Andhra Pradesh and Odisha as they brace for claim settlement, barely weeks after carrying out a similar exercise in the wake of Jammu & Kashmir floods.
The very severe cyclonic storm 'Hudhud' has caused widespread devastation in Visakhapatnam and other coastal districts of Andhra Pradesh. Odisha, too, suffered damage.
As many as 24 people lost their lives in the two states, where properties worths hundreds of crores were washed away or damaged.
"I am personally collecting statistics from my staff from the 'Hudhud' hit areas in the north coastal Andhra and coastal Odisha. However, it will be too early to provide details," Oriental Insurance Chairman and Managing Director A K Saxena said.

A senior official of New India Assurance said major part of claims are likely to come from Andhra, especially from Visakhapatnam, the largest industrial city in the state.
Apart from the port city, the other coastal districts of Srikakulam, Vizianagaram and East Godavari have suffered widespread damage, while the worst-hit Odisha districts are Gajapati, Koraput, Malkangiri and Rayagada.

For general insurers, most of the claims are likely to come from segments like property and vehicle damage. In case of life insurers, the claims will be settled only in case of death except for the health insurance policies in which hospitalisation fee would be reimbursed.

"LIC will take proactive measures for customers' requirements in the Hudhud-affected areas for claim settlements," LIC Managing Director V K Sharma told PTI.
He said "we have deputed more than 150 officials in Visakhapatnam and surrounding areas to assess the damage."
LIC will provide claim concession for the cyclone victims. This means the state-run insurance giant will not ask for papers and a simple declaration will be enough for submitting claims, he said.
Earlier, Chairman-cum-Managing Director of United India Insurance Milind Kharat had said 'Hudhud' and J&K floods may lead to rise in reinsurance prices which were otherwise falling.
Meanwhile, a report from Hyderabad said Andhra Pradesh Chief Minister Chandrababu Naidu held a meeting with the insurers this evening and asked them to expedite settlement of claims.