May 4, 2015
India’s state-owned national reinsurer, General Insurance Corporation of India (GIC Re), is expecting claims worth US$50 million from the Nepal earthquake, which is lower than previously thought.
GIC Re, which is the largest reinsurance partner of the Nepalese insurance industry, has a gross exposure in the Nepalese insurance market of around US$140 million, reported the Times of India. “So far we have not received any cash-calls from any of our cedents. Much will depend on the damages suffered by the insured properties,” said GIC Re. “We reiterate our commitment to accord top priority to all claims arising out of this tragic event.” The company has sent a survey team to Nepal to assess damage caused by the quake.
A massive earthquake measured at 7.9 on the Richter scale rocked Nepal on 25 April, followed by another one measuring 6.7 the next day. The earthquake is the worst to hit the region in 80 years and has caused more than 6,700 deaths and injured more than 14,000 people. “It will take some time for an actual picture to emerge. However, we expect the claims to remain with in US$50 million in the worst case scenario,” said GIC Re.
This loss estimate is smaller than one given by GIC Re Chairman and Managing Director, Mr A K Roy, earlier last week. He had said that GIC Re expected to pay at most INR10 billion (US$160 million) in claims against the damages caused by the massive earthquake. Claims are expected from segments like power plants, housing complexes, commercial buildings and hotels.