21 November 2015

The general insurance industry is likely to see claims of around ₹500 crore after record rains caused massive flooding in Chennai and some areas in Tamil Nadu.

A senior official from the General Insurance Corporation, the sole domestic reinsurer, said that the company is still receiving estimates from insurers but cumulative losses are likely to be under ₹500 crore for the industry.

Most claims have come for automobiles and property and from small and medium enterprises (SMEs). Chennai-headquartered United India Insurance received the largest number of claims amounting to ₹130 crore, primarily for automobiles and from small-scale units.

G Srinivasan, Chairman and Managing Director of New India Assurance, said that the company has received claims amounting to ₹35 crore.

He said that the magnitude of lossfor general insurers may not be as big as that seen during Cyclone Hudhud which affected Andhra Pradesh and Odisha and the floods in Jammu and Kashmir as most claims have come from flooding in low-lying areas and there have been no major losses to industries, apart from small stock losses.

Last year, natural disasters such as the floods in Jammu and Kashmir and Cyclone Hudhud led to insured losses of around ₹1,500 crore and ₹4,000 crore, respectively.

Easwara Narayanan, Chief Operating Officer, Future Generali India Insurance, said that the company has received 45 claims till date with a total claim size of ₹8 crore mainly from affected areas like Chennai, Puducherry and Cuddalore.

Tata AIG General Insurance has received around 30 claims for motor and property so far.

“We don’t see a major trigger for large claims as it was not a cyclone and most of the claims will come from only flooding,” M Ravichandran, President, Tata AIG, said.

Bajaj Allianz General Insurance has received close to 240 claims primarily for high-end vehicles and property. Sasikumar Adidamu, Chief Technical Officer, Non-motor, Bajaj Allianz General Insurance, said, “We have received many claims from the property segment pertaining to industrial and commercial units. The damages are mostly to stock, equipment and machineries in industrial units and warehouses due to inundation.”

Source: The Hindu Business Line