Even as insurance companies gear up to settle claims arising out of floods in Tamil Nadu, public sector United India Insurance...
Even as insurance companies gear up to settle claims arising out of floods in Tamil Nadu, public sector United India Insurance, which has the biggest exposure to the state, has received more than 1,000 claims worth approximately Rs 500 crore.
Overall, the insurance industry is likely to face claims of over Rs 2,000-2,500 crore because of loss and destruction of properties, automobiles, etc. The small and medium enterprises (SME) sector has also been severely hit by floods.
“We have received 1,080 claims as of now and have already settled 73 claims. For us, out of the total number of claims, half of them are in motor insurance while remaining in householders’ policies and some in SME sector. We believe that claims numbers might rise in the days to come, but our main aim is to settle claims as early as possible,” said Milind Kharat, CMD of United India Insurance. Around 135 surveyors are currently in Tamil Nadu, he added.
Senior industry officials believe that the industry overall might face claims of over R2,000-2,500 crore following the devastating floods in Tamil Nadu.
“TATA AIG General Insurance has witnessed an increase in the number of claims post the second spell of rains in Chennai. The number of claims received post the last spell is around 382. TATA AIG received gross claims of approximately Rs 50 crore,” M Ravichandran, president — insurance, TATA AIG General Insurance, said. Maximum number of claims have been received for automobiles (cars and two-wheelers), followed by small business units, telecom towers and ATMs.
Companies are taking all steps to expedite settlements with minimum and relevant documents and all insurers are gearing up to appoint surveyors within 72 hours, the General Insurance Council said in a press release on Wednesday.
MS Sreedhar, managing director, Royal Sundaram Alliance Insurance, said: the company has received around 700 claims as on date (relating to rains only in November and December). “With the rains having abated a little, we expect further claims to be reported in coming days, as more people will be in a position to assess the losses and report the same,” Sreedhar said.