ICICI Lombard pays Rs 20 lakh to GCMMF for fire claims

ICICI Lombard General Insurance Company has paid Rs 20 lakh to Gujarat Corporative Milk Marketing Federation (GCMMF), which owns the Amul brand of milk products, on claims over a fire that took place at the federation's plant in Anand near Baroda on December 16.

Against a claim of Rs 1 crore, ICICI Lombard made this initial on-account payment to Kaira District Cooperative Milk Producers Union, a part of GCMMF, within two days of the incident.

The fire took place following an explosion at GCMMF's powder plant, which has the capacity to produce 60 metric tonne of milk powder.

ICICI Lombard chief executive officer Sandeep Bakshi said: "As the loss assessment could take a while, an initial payment is important if we have to raise the standard of service in the country."

ICICI Lombard generally makes on-account payments, releasing 50-60 per cent of the market value of the property damages. The total sum assured for the plant amounts to Rs 14 crore, but the actual damage has been estimated at Rs 1 crore.

ICICI Lombard has, in the last six months, settled over 9,200 claims.

Rakesh Jain, head customer service, finance and accounts, ICICI Lombard, said prior to finalising the assessment of the claim, a significant portion has been paid by way of on-account payments.

Preliminary analysis of the damage is being estimated by the surveyors and equipment contractors "" L&T Niro "" which commissioned the turnkey project in 1996.

"Our endeavour is to close claims at the earliest and we make on-account payment even in the case of smaller claims as a matter of principle," he added.