Chennai rains will cost this insurance company around Rs 500 crores

A flooded residential area during recent Chennai rains

Chennai: Public sector insurer New India Assurance Friday said it expects claims of around Rs 500 crore from flood-hit Chennai and other areas.

The city-based company has received 1,700 claims from Chennai, Cuddalore, Thiruvallur and Kancheepuram districts which received heavy rainfall, according to G Srinivasan, Chairman and Managing Director of New India Assurance, told reporters here.

"We have received 1,700 claims estimated to be around Rs 425 crore. This is total value of claims at this point of time. But we expect it will go to Rs 500 crore," he said.

Stating that the company has taken steps to expedite claims settlements, he said, "Fifty offices are functioning and we have streamlined the operations. We have formed a special task force and have set up a helpline."

Compared to general 30 day period for claims settlement, the company would be able to settle claims in seven days after simplified procedures, he said.

To a query, he said 800 of the 1,700 claims were motor insurance and the remaining were non-motor.

On how much the industry was looking at in terms of claims, he said it was likely to be around Rs 2,500 crore, with 10,000 claims from flood-hit areas.

To a query, he said the insurance industry was in talks with National Disaster Management Authority to cover large scale incidents that occur due to natural calamities.

"We have some broad ideas. We have asked that buildings and other establishments may be covered (under insurance). Deaths due to natural calamities may be covered. This is being deliberated," he said.