FinMin asks insurers to speedily disburse claims for Wayanad victims

Over 350 people died and nearly 200 others are still missing in the major landslide that occurred on July 30. Properties worth hundreds of crores were destroyed in the landslide.

However, insurance sources said normally less than 10 per cent of the people and property are covered in any region in India, leaving a huge gap without protection. They will have to depend on the government and other agencies for compensation and rebuilding of houses. The global average for insurance protection is 54 per cent.

“In view of the unfortunate landslide incident and heavy rains in Kerala, the government has mandated the Public Sector Insurance companies (PSICs), including LIC, National Insurance Corporation, New India Assurance, Oriental Insurance, and United India Insurance to extend all possible support to the victims of the calamity so that the insurance claims can be expeditiously processed and paid,” it said.

LIC has been asked to speedily disburse the claim amount in respect of the policyholders under the PM Jeevan Jyoti Bima Yojana, it said.

The documentation required for processing of claims has been relaxed comprehensively to ensure speedy dispersal of the claim amount, it said.

It further said, the General Insurance Council will coordinate with the insurance companies to ensure that claims are processed and paid expeditiously and will host a portal for all insurers to report claim status daily.

The central government and finance ministry remain committed to supporting the victims of this calamity and ensuring they receive the necessary assistance without delay and trouble, it added.

People have suffered heavy losses in natural calamities in India in the past. “In India the intensity and frequency of natural calamities, especially cyclone, have increased manifold. Further, the cyclones in west coast (Maharashtra, Gujrat) in increasing, which has not been witnessed in the past. However, around 8% of the total losses are covered. So, there is around 93% protection gap during the period 1991 to 2022. So, early intervention is needed to close the protection gap, which are in all lines of insurance,” said a report from State Bank of India.