Flood- hit claims hit insurance cos

Mumbai, Oct. 19: Claims have started pouring in from cyclone Hudhud- hit areas of Andhra Pradesh and Odisha and insurers are gearing up to settle them.

“Claims have already started pouring in from the cyclone- hit areas in the two states and we will immediately make interim payment against those claims. For the Jammu and Kashmir floods, we have already settled 40 per cent claims and we are hopeful of settling the remaining by the fiscal end,” New India Assurance chairman and managing director G. Srinivasan said.

The rate of insurance or even reinsurance might go up due to the two recent calamities.

However, insurers are currently busy collecting data to arrive at a conclusion.

“There is no immediate impact on the rates as we anticipate one or two incidents every year. Last year, we had the Uttarakhand floods. After all, we will have to wait to see the impact in Vizag. As of now we don’t have full idea.

“Based on the full information of loss we receive from the Hudhud- hit areas, the market would react accordingly,” said Mr Srinivasan, who is also the chairman of General Insurers Association.

Reinsurance rates are soft and generally reinsurers will not be happy to see major losses due to these natural incidents, he added. Still, we will have to wait until February- March when the reinsurance premiums will come up for renewal, Mr Srinivasan said.

The rate of insurance or even reinsurance might go up due to the two recent calamities. However, insurers are currently busy collecting data to arrive at a conclusion.