Ukhand floods: Rs 1,500 crore paid towards insurance claims

Srinivasan said disaster risk management was a profit-making venture for the companies.

After the Uttarakhand flash floods,insurance companies had paid claims to the tune of Rs 1,500 crore,while claims after mega cyclone Phailin did not cross Rs 200 crore,said G Srinivasan,chief managing director of New India Assurance and chairman of National Insurance Academy (NIA),while speaking to mediapersons on Thursday.

Claims settled after the floods were mostly related to business establishments,vehicle insurances and loss of human lives. After Phailin,the claims that were settled were also of the same nature, he said. Pointing to the figures,he said they denoted the low penetration of insurance in the country.

Refuting claims that insurance companies were reluctant to give disaster cover,Srinivasan said disaster risk management was a profit-making venture for the companies. The premium to be paid would vary as per the susceptibility of the region,but companies have shown keen interest, he said.

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Around 17-18 per cent of business cover is provided for fire and engineering losses. In order to increase insurance penetration,special schemes are being undertaken. They are being publicised through various media, he added.

Earlier,while speaking at the inaugural function of the two-day seminar on risk management,he listed various pitfalls before the insurance companies with regard to risk management.

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