Uttarakhand floods: Insurance claims may reach R3,000 crhttps://indianexpress.com/article/news-archive/web/uttarakhand-floods-insurance-claims-may-reach-r3-000-cr/

Uttarakhand floods: Insurance claims may reach R3,000 cr

In the wake of widespread destruction in Uttarakhand by flash floods,insurers are now gearing up to process claims and the insurance industry expects claims to touch Rs 3,000 crore.

In the wake of widespread destruction in Uttarakhand by flash floods,insurers are now gearing up to process claims and the insurance industry expects claims to touch Rs 3,000 crore.

“It is too early to get a clear picture. Our company has already received about 20 intimations from our retail customers though corporate clients are just beginning to assess the damage,” said Rakesh Jain,chief executive officer,Reliance General Insurance.

In the non-life insurance sector,claims for motor and personal accident insurance have begun to flow in from the flood ravaged state,Jain said. Life insurers have already begun receiving and processing claims,he added.

Finance minister P Chidambaram had earlier asked Life Insurance Corporation to expedite claims of flood victims from Uttarakhand. Over 5,000 people are feared dead in the flood and key industrial units,including at least six hydro power projects were also impacted.

Jain also suggested that there should be mandatory capturing of latitude and longitude for each exposure in property cover to measure catastrophic exposures. “In case of any such unfortunate incident,this would help lessen the burden on companies,” he said.

Reliance General Insurance registered premium growth of 17 per cent in 2012-13 with an 11 per cent increase in the number of policies sold.  It also recorded 25 per cent increase in its gross written premium at Rs 706 crore during the first quarter of this fiscal.

In 2013-14,the insurer will focus on health insurance of independent women and girl child as well as other non motor insurance segments.

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“The aim is to reduce the dependence on motor insurance,which currently at 64 per cent of the company’s total business. Our strategy to change business and product mix,optimise use of technology,manage costs and expand our retail agent base has helped us achieve a significant turnaround in performance,” he said. 

The correspondent was in Athens at the invitation of

Reliance General Insurance.