Money & Banking

Insurers gear up to process claims

Surabhi Mumbai | Updated on May 26, 2020

Insurance companies have begun processing claims in the aftermath of Cyclone Amphan, which swept through parts of Odisha, West Bengal and neighbouring States.

Overall losses

While estimates on the overall losses are yet to be finalised, insurers say the economic losses are far more than the insured losses, given the high underpenetration of insurance in the country.

“We are still getting the intimation for claims and it will take about two more days for all intimations to come in. Surveyors are already being deputed to go and assess the damage and claims,” said MN Sarma, Secretary General, General Insurance Council.

“Some 220 small claims had been reported by May 25. These are very initial days and usually claims start coming in after seven to eight days,” said Atul Sahai, CMD, New India Assurance.

Insurance companies are, however, gearing up to process claims, and some say that claims could range between ₹500 crore and ₹1,000 crore.

Further, with the national lockdown amid the coronavirus pandemic, insurers are also using innovative mechanisms to expedite claims processing.

“We expect most losses from property and motor segments with a little bit in marine. We are trying to reach to customers in the lockdown and are doing preliminary surveys on videos. As the situation eases, we will do physical surveys also. But claims process has started so that we can give them relief as fast as possible,” said Sanjay Dutta, Chief- Underwriting, Claims and Reinsurance, ICICI Lombard.

Life insurers, too, have begun work on expediting claims processing and have set up special help desk and require minimal paperwork to process claims.

Ashish Rao, Executive Vice-President, Customer Service and Operations, ICICI Prudential Life Insurance, said claims settlement process remains unaffected and has been simplified. “All life, health or PMJJBY-related claims can be raised by submitting just three documents,” he said.

Published on May 26, 2020

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