November 24, 2015
The general insurance industry is likely to see claims of around INR5 billion (US$75.6 million) after record rains caused massive flooding in Chennai and some areas in Tamil Nadu in southern India.
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 INR5 billion for the industry, reported the Hindu Business Line. Most claims are from automobiles and property and small and medium enterprises (SMEs). Chennai-headquartered United India Insurance has so far received the largest number of claims amounting to INR1.3 billion, primarily for automobiles and from small-scale units.
Mr G Srinivasan, Chairman and Managing Director of New India Assurance, said that the company has received claims amounting to INR350 million. He said that the magnitude of loss for general insurers may not be as big as that seen last year during Cyclone Hudhud 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 INR15 billion and INR40 billion, respectively. “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,” Mr M Ravichandran, President of Tata AIG, said.