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Mumbai deluge may drain insurers on motor portfolio
Our Bureau
New Delhi
,
July 27
INSURERS fear that the deluge in Mumbai on Tuesday is likely to create a large dent in their motor portfolio.
"There could be a lot of claims on the motor insurance side since many cars and other vehicles would have to undergo repairs. We have to wait and see how things unfold once Mumbai limps back to normal," the Chairman and Managing Director, Oriental Insurance Co, Mr M. Ramadoss, told Business Line. General insurance companies, especially the public sector companies, have for a long time been complaining that they are bleeding on the motor portfolio with claims each year far exceeding the total premium collected.
However, he said companies have not been able to get the initial feedback from their offices in the affected areas since a holiday was declared. "Most of our officers have been stranded. We will have to wait for some more time to get an estimate of the likely damages," he said.
Mr Ramadoss said he did not expect major losses beyond the motor insurance front since there was no report yet of any factory being damaged. "We hope no big factory is damaged in the rains. In that case, the damage could be larger."
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