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Journalism of Courage
Even as financial capital of the country is busy counting losses, Indian insurance companies are waiting for a deluge of a different kind.
With a massive claim of Rs 150 crore, Reliance Industries8217; Patalganga unit has set the ball rolling for the claims made by India Inc which insurance companies now fear can go up to a record high of Rs 2,000 crore.
8216;8216;We have sent surveyors to all the big plants8230; and we expect their reports within the few days,8217;8217; he added. This record claim is excluding the Rs 900 crore claim made by ONGC for its Bombay High accident last week. 8216;8216;The industry would rather like to forget Mumbai of last week,8217;8217; said an official with New India Assurance.
Some of big companies who were hit by the heavy floods and made claims are: Anil Ambani-owned Reliance Energy8217;s Mumbai operations, B.K. Birla-owned Century Textiles8217; Shahad unit, Mukesh Ambani8217;s Reliance Industries8217; Patalganga unit, Delhi-based Asahi Floatglass, Nusli Wadia8217;s Bombay Dyeing and Italian automobile firm Fiat India Ltd, which has a car manufacturing plant in Kurla.
Fiat8217;s car plant in Kurla was producing 150 cars a day. With plant operations shut down, the car company is expected to make a claim of at least Rs 30-40 crore, say industry sources.
The pharmaceutical industry 8212; which has set up huge godowns in Bhiwandi 8212;is also counting losses. Cipla said its stocks at its Bhiwandi godown has been completely damaged due to heavy rains and flooding. 8216;8216;These stocks have been adequately insured. We are in the process of assessing the damage and will lodge a claim with insurers,8217;8217; the company said.
Bombay Dyeing said operations at its DMT Plant at Patalganga has been suspended. 8216;8216;Owing to flooding of the company8217;s godowns at Kurla and Bhiwandi on July 26, cloth stocks stored therein have been damaged. These stocks have been adequately insured,8217;8217; it said.
Officials say the flood loss is immense as it is not only loss of assets like plants, machineries and equipments but also of drop in productivity and loss of lives. Given the high penetration of asset insurance in India Inc, insurable losses will be high though the claims will be lower from the home-owners.
