For quick settlements, the companies have decided to simplify procedures. According to an official statement, approximately 11,000 claims amounting to Rs 1,400 crore have been lodged with the four state-owned general insurers. It is learnt that Mr Chidambaram has asked the the CMDs to settle all claims below Rs 50,000 by the end of the month. Out of the total claims, 3558 relate to miscellaneous like householders while 2619 to motor own damage. The rest relate to fire and marine.
The finance minister also reviewed the position of settlement of claims for the Gujarat floods. As on 29th July, as many as 4500 claims are pending involving an amount of Rs 134 crore.
The companies have been asked to settle claims up to Rs 50,000 from the Gujarat floods by August 31 as well. Though general insurance companies are expecting claims worth Rs 2000 crore in total from the Mumbai floods, their profit margins will not be impacted significantly, due to re-insurance. An industry analyst said that for a claim of Rs 100 crore, a company would have to take a hit of Rs 5 crore, in case of re-insurance. A senior official at Oriental Insurance told FE that the company may have to shell out Rs 500 crore as claims from the Mumbai deluge and the ONGC disaster.