Money & Banking

General insurers gearing up to tackle claims after heavy rains in Telangana, AP

G Naga Sridhar Hyderabad | Updated on January 16, 2018

Many vehicles were submerged in the heavy rains that lashed Hyderabad last week   -  PTI

Motor insurance claims begin to trickle in

General insurers are gearing up to tackle claims arising out of the recent heavy rains in Telangana and Andhra Pradesh.

Normal life was thrown out of gear in the States by heavy rainfall which led to flooding in many areas.

Many vehicles were either washed away or were badly damaged as they were submerged in water for many days.

“We have received 26 motor claims from the flood affected areas of Hyderabad and are expecting more to come as rains have come down,’’ Easwara Narayanan, Chief Operating Officer, Future Generali India Insurance, told Business Line.

For easy reporting and quick settlement of claims, Future Generali has set up kiosks in the areas where people are badly affected by the flood.

“Our team in Hyderabad has been on its toes all these days and is trying to settle the claims as fast as possible to ensure people do not suffer any further,’’ he added.

Other insurers too are in a similar mode. Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance, said: “So far, the company has received a few motor claims post the heavy showers in Hyderabad. Claims may gradually start trickling in and we would be able to get a clearer picture in four to five days.’’

However, the company does not expect the number and severity of claims to be as high as that of the claims received post flooding events in the country such as the Chennai floods, he said.

According to M Ravichandran, President, Tata AIG General Insurance, the nature of claims pouring in or being expected will be basically motor insurance for those vehicles which are covered under a comprehensive insurance cover.

Home insurance segment

Insurers are not expecting any major claims in the home insurance segment. “Despite the bad experiences during Chennai floods, home insurance is still being neglected by many,’’ said Narayanan adding that home insurance is ‘very affordable’ and a low priced product with a premium as low as ₹50 per ₹1 lakh.

Though there is some interest in home insurance after every calamity, it is not sustained after a few days, said Ravichandran.

According to industry estimates, penetration of home insurance is below one per cent in the country.

Published on September 28, 2016

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