 "J Jayalalithaa, Rains, Chennai, Tamil Nadu")
Insurance companies have taken a hit of Rs 4,800 crore due to claims arising from the recent floods that hit Chennai and other parts of Tamil Nadu. Public sector insurers, including United India Insurance, have taken the largest hit.
Speaking on the sidelines of a Ficci insurance conference, G Srinivasan, chairman and managing director of New India Insurance explained that motor insurance would account for the largest amount of claims and public sector insurers would be worst hit, say industry sources.
He explained that overall about 50,000 claims have been filed. With respect to overall value, property insurance claims account for the highest valued claims.
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In November, heavy rains lashed Chennai and several other districts in Tamil Nadu causing heavy damage to life and property. More than 200 lives were lost as per estimated as floods lashed the city for days and people were stranded in submerged buildings without food or water.
Corporate all-risk policies, which include production interruption coverage, have also seen an influx of claims since several factories and offices were submerged for more than three days.
In terms of numbers, motor insurance topped the list of claims, as several cars and motorcycles parked on the streets got damaged in the deluge.
Although 250 deaths had been reported, experts said insured losses have been low, as only a few victims had insurance policies.
Insurance Regulatory and Development Authority of India (IRDAI) also asked insurers to ease the claims processes.
IRDAI chairman T S Vijayan said that there will be high losses from the floods, though he added that the insurers have done their best to settle claims quickly.
Even for surveyors and loss assessors, some relaxations were given so that claims are settled faster.
