Insurance claims have started trickling in even as Mumbai has been reeling under incessant rains for the past five days.
Tata-AIG general insurance has so far received 40 claims under property insurance. Another 10 to 15 claims have been registered with ICICI Lombard General Insurance under fire insurance.
State-run New India Assurance Company, however, has not received any claims so far while Iffco-Tokio General Insurance, a private player, has seen very few claims.
Nervous insurers are keeping their fingers crossed and hoping that this year will not see a repeat of last year's deluge.
Public sector insurance companies alone suffered a loss of Rs 2,000 crore (Rs 20 billion) from the motor claims last year and the entire industry suffered a loss of over Rs 3,000 crore (Rs 30 billion), making it the highest ever flood claim in the country.
Although some insurers have increased their reinsurance cover to lessen the loss, all insurance companies are advising their policyholders on how to protect their goods, homes and vehicles from floods.
Standard fire policy, home and property insurance policy and motor insurance policy cover flood as well as inundation (overflowing of water).
Says Dalip Verma, managing director of Tata-AIG general insurance, "We have received 40 claims under property insurance so far. We don't expect a high number of claims this year."
ICICI Lombard General insurance suffered a loss of 200 crore (Rs 2 billion) due to the floods last July. However, the company has not increased its reinsurance cover as it had proved adequate last year and the company expects fewer claims this year.
"So far 10 to15 claims have been registered under fire insurance. We had prepared loss assessment reports for each claim last year and based on the nature of loss, we have advised policyholders on the precaution they need to take," ICICI Lombard National Manager, underwriting, Amol Phadnis said.
A senior New India Assurance executive points out that the company has not received any claim so far. "We have taken adequate precautions this year by advising our customers on protecting their vehicle and we don't expect huge claims like last year," he says. New India Assurance has increased reinsurance cover in excess of Rs 500 crore (Rs 5 billion).
Iffco-Tokio general insurance that suffered a loss of Rs 300 crore (Rs 3 billion) from floods across the country last year and bulk of this -- over Rs 250 crore (Rs 2.5 billion) -- on account of Mumbai floods. The company has created a special team and set up round the clock call centres to help their clients get their vehicles assessed.
"We are in touch with dealers, garage owners and repairers in case they need help for our clients," says Ajit Narain, MD and CEO, Iffco-Tokio general insurance. It has so far received very few claims for motor and none under fire insurance.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
