Chennai floods: Financial loss may exceed Rs 15,000 crore

Zee Media Bureau

New Delhi: Industry body Assocham on Wednesday estimated the financial loss in Chennai floods to exceed Rs 15,000 crore even as insurance companies are anticipating claims of at least Rs 500 crore.

Chennai has been reeling under the impact of one of the worst rainfalls in the city in about 100 years due to which normal lives have been adversely affected. Over 180 people have died so far due to rain, as per reports.

The Associated Chambers of Commerce and Industry of India (Assocham) said the financial loss may exceed Rs 15,000 crore. However, the state government has put the total loss at Rs 8,481 crore.

According to industry sources, insurance companies are anticipating claims of at least Rs 500 crore with motor insurance likely to account for largest amount of claims followed by machinery and production loss.

A senior official from the General Insurance Corporation is said to have informed that the company is receiving estimates from insurers while New India Assurance is said to have received insurance claims worth Rs 35 crore already.

In recent times, insurance companies have been one of the most affected due to natural calamities.

Last year, natural disasters like the floods in Jammu and Kashmir and Cyclone Hudhud led to insured losses of around Rs 1,500 crore and Rs 4,000 crore, respectively.

Moreover, the Mumbai flood on July 26, 2005 that caused havoc for almost three days had led to losses of almost Rs 3,000 crore for insurance companies.

The Tamil Nadu government on Wednesday said 72,119 people were now housed in 432 relief camps set up in the rain-affected Thiruvallur, Kanchipuram and Chennai districts.

The government said relief measures were being taken on war footing and 329,919 food packets have been distributed to the flood-affected people in these three districts.