MUMBAI, June 28: The four subsidiaries of the General Insurance Corporation - New India Assurance, United India, Oriental Insurance and National Insurance - have received Rs 537 crore worth of claims for losses incurred on account of the recent Gujarat cyclone. The number of claims reported to the insurance companies has been pegged at about 1,800. However, the four companies' liabilities for all the claims will be restricted to around Rs 37 crore as all the policies have been re-insured extensively in the international market."Almost 90-95 per cent of the claims have been re-insured," said a top official of GIC, adding that the actual total loss amount will be subject to scrutiny by the companies.
After an initial survey of the damage in the whole area, the companies have started settling claims since last week. The largest GIC subsidiary, New India Assurance, has been chosen to head the inter-company committee set up to settle the claims.
The companies have received the claim papers from theirAhmedabad and Baroda offices. Reliance Petroleum has made the single largest claim of over Rs 100 crore for its refinery project at Jamnagar. The company, which has recorded a loss of around Rs 156 crore, may make a second claim after a thorough assessment of the damage at the project site. Delhi-based Oriental Insurance, which is the lead insurer for the project, has the maximum claim bill of around Rs 225.25 crore.
The bulk of this amount has, however, been re-insured abroad. Essar Oil's refinery project at Vadinar is yet to submit its claims to its insurance company, United India. This may well turn out to be the second largest claim in the whole claims list. Chennai-based United India has so far received around Rs 66 crore worth of claims. Mumbai-based New India Assurance has received total claims worth Rs 124.87 crore for the damage in the area.
Calcutta-based National Insurance has received the smallest claim amount for Rs 67.89 crore on account of the cyclone which lashed Kandla port and thesouthern coast of Gujarat.
As a precautionary measure to check fraudulent claims, the companies have videotaped all the damage in the area, including ones for which claims are yet to be made.
"We are taking all measures to check any kind of fraudulent claims," said GIC officials. In a bid to expedite claim settlements, the companies have summoned their surveyors from all over the country. "We are taking up the claims on a war footing," claimed GIC officials.
The major losses in the Kandla storm include 50-60 windmills worth Rs 60 crore, ships, a substantial amount of perishable cargo, property under construction and minor household goods.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
