Mumbai floods not to hit NIC's bottomline

National Insurance Company (NIC) is expected to stay in the black despite the Mumbai floods, which saw the company receive 3,000 claims worth Rs 350 crore.

Talking to Business Standard on the sidelines of NIC's tie-up with Indian Overseas Bank (IOB) to market its mediclaim policies, B Chakrabarthy, chairman and managing director of NIC, said: "We have sufficient re-insurance cover. Reinsurance pacts cover us for any claim of over Rs 10 crore in addition to catastrophe reinsurance which covers us for claims between Rs 15 and Rs 100 crore."

In order to expedite the claims settlement for Mumbai, the Insurance Regulatory and Development Authority (Irda) has made an exception by relaxing the norms.

Irda has raised the limit of losses required to be surveyed by a licensed surveyor from Rs 20,000 to Rs 50,000 for Mumbai floods.