• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Sarbajeet K. Sen

Many vehicle owners are rejecting the offer out of fear that the ultimate repair bill might turn out to be higher than the settlement amount.

New Delhi , Sept. 16

INSURERS are facing a strange problem on their motor portfolio in the aftermath of the recent Mumbai floods.

In what is putting a blot on their claims settlement record, the offers made by insurers to write out cheques to settle claims are being rejected by vehicleowners who have been put on the waitlist by the overcrowded repair garages in the city.

While insurers are moving in swiftly hoping to ease the financial burden on the insured by offering to settle the claims upfront, many vehicle-owners are rejecting the offer out of fear that the ultimate repair bill might turn out to be higher than the settlement amount.

"We are willing to make the payout upfront. But many claimants are delaying the process even after our surveyors have made their assessment. Some vehicle owners are even refusing to get the damage assessed till they get their turn at the repair garages. There appears to be a fear that the final repair bill might be higher than the amount settled with us," the Chairman and Managing Director, Oriental Insurance Co, Mr M. Ramadoss, told Business Line.

He said that there was still a huge waitlist at most of the city's repair workshops. "Garages are not able to take the load. Added to this is a scarcity of spare parts that is delaying the repairs," Mr Ramadoss said.

He pointed out that as a result of the refusal by car-owners to settle claims, Oriental Insurance is being faced with a situation where as on date out of the 532 outstanding claims involving amount of less than Rs 50,000, motor claims alone account for a total of 500 outstanding claims. "We want to settle the claims as soon as possible. But it is the motor claims that are creating the problem," Mr Ramadoss said.

The Finance Ministry has recently asked insurers to expeditiously settle claims arising out the Mumbai floods with special emphasis on early settlement of claims involving amounts less than Rs 50,000.

Mr Ramadoss said that 5,041 claims, amounting to Rs 545 crore, had been lodged with his company arising out of damages caused by the rains. Out of this, 1,145 claims involved amounts less than Rs 50,000 each that included 565 motor claims. Till date, Oriental Insurance has been able to settle 613 smaller claims (less than Rs 50,000) with a payout of Rs 181 crore. The total cases settled by the company, including the larger claims, are 873, Mr Ramadoss said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee firms up; securities weak

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line