Insurance companies estimate the claims of Mumbai’s Taj Mahal Hotel and Tower at Rs 400 crore and of Oberoi-Trident at Rs 100 crore. Both the hotels, ravaged in the terror attacks on Mumbai, re-open tomorrow.
Executives of the insurance companies, who did not want to be named, said the estimate included terror-related claims as well as those for loss of profit, since business at the two hotels had been affected.
At the same time, the executives said, these were initial estimates and it could take the companies up to four or five months to assess the damage at the old Taj Hotel complex.
“Estimating the extent of damage to antiques is not an easy task. Our surveyors are on the job but it could take a few months before the extent of damage and the claims can be finalised,” said an executive. Another said the damage to Trident was minimal; Oberoi had been more affected.
In the interim, General Insurance, the designated reinsurer that also manages the terrorism insurance pool, has handed over two cheques of Rs 25 crore each to Indian Hotels, which owns the Taj chain of hotels, and East India Hotels, which runs Oberoi and Trident.
ICICI Lombard General Insurance has cleared claims of Rs 1.5 crore from Taj. The hotel employees were covered under the corporate cover and group personal accident policy, said an executive from the company.
According to a statement by Taj Hotel earlier, 10 employees were killed and 11 others injured during the 60-hour siege of the South Mumbai hotel.
Life Insurance Corporation of India, which had covered the employees of Oberoi under the group gratuity scheme, has settled claims worth Rs 55 lakh.
Insurance companies have decided to ignore the fine print and are settling claims quickly.
A part of the claims to the insurers will be paid out of the Rs 700 crore terrorism insurance pool, which was created after the 9/11 attacks in the United States. With the corpus eroded due to the biggest ever terror-related claim, general insurance companies will soon decide on increasing the premium rates.
The new rates for terrorism insurance covers are expected to be applicable from April. The pool has helped Indian firms and individuals avoid a major rise in premium rates, something they had to deal with after every terror strike earlier.
