Insurance companies are likely to take a hit of more than ₹2,000 crore in the wake of torrential rains in Chennai, Puducherry and other parts of Tamil Nadu, as well as Andhra Pradesh.

Due to inundation, insurers expect a large number of claims from automobiles, property and small and medium enterprises.

A senior official of a private insurance company said the overall claims for the industry are likely to exceed ₹2,000 crore as the current spell of rains in Tamil Nadu has resulted in massive destruction to life and property.

Chennai-based State-run insurer United India Insurance is expecting major claims after the floods.

“We have already received claims of around ₹300 crore, and after major flooding since Tuesday we are expecting more losses. We expect to see major losses in householders, shopkeepers and motor insurance policies as most vehicles are under water,” said Milind Kharat, Chairman and Managing Director, United India Insurance.

G Srinivasan, CMD of New India Assurance – the country’s largest general insurer – said the company had received claims worth ₹100 crore following floods in Tamil Nadu in November. And now, after the severe flooding of the last two days, the quantum of claims are expected to mount.

A senior official at SBI General Insurance said his company had already received 154 claims from the commercial and motor insurance space, worth over ₹47 crore.

Cholamandalam MS General Insurance Managing Director SS Gopalarathnam said his company’s claims stood at around ₹25 crore.

Insurance industry officials said most insurers are still in the process of receiving final estimates as surveyors have not been able to visit the affected areas and most employees have not been able to reach their offices.

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