As claims from flood-hit areas of Andhra Pradesh start pouring in, non-life insurers are facing a claim settlement of nearly Rs 300 crore.
According to insurers, though the hit this time may be much lower than last year’s Tamil Nadu floods, which had seen claims of Rs 4,800 crore, the number may be significant.
The industry is expecting around Rs 300 crore claims from the late September floods, said G Srinivasan, Chairman, Gipsa (General Insurance Public Sector Association).
The largest state-owned non-life insurer New India Assurance alone is looking at a figure of Rs 15 crore. “Our losses in Andhra floods are around Rs 15 crore,” New India Assurance Chairman G Srinivasan told PTI.
“The loss is not big and we are taking all possible steps to expedite settlement. We are known for quick settlement of claims,” he added.
Most flooding occurred in low-lying areas of Guntur, which almost recovered in 2-3 days, the reason why the event was not classified as a catastrophe.
SBI General has so far received 23 claims and expects the total underwriting loss to go as high as Rs 1.44 crore.
“Till date, we have received 23 claims amounting to losses of Rs 2.68 crore,” said Pankaj Verma, SBI General Insurance Head (claims operations), adding that the projection for total underwriting losses stands at Rs 1.44 crore.
“While the settlement is still under process, owing to the nature of the calamity, we have relaxed the documentation guidelines and process to ensure quick claim notification by our policyholders. To expedite the claim settlement, our local claims team has ensured all assessment surveys are completed for all notified claims.”
The company has stationed a claims specialist team along with its panel of independent surveyors in Hyderabad immediately to manage the situation on the ground and extend all assistance to its policyholders.
Moreover, the company is reaching out to its policyholders to facilitate early claims notification.
The team is working on interim payments for business units impacted by the rains and flooding to ensure immediate financial assistance for reconstruction work.