Despite the devastation caused by cyclone Phailin in Odisha and Andhra Pradesh, general insurance companies do not expect a huge outgo in terms of claims payouts as insurance penetration, particularly on the property front, is still low in these States.
Currently, surveyors of insurance companies are assessing the damages.
So far, overall loss for the insurance industry is estimated at Rs 70 crore.
According to N.S.R. Chandraprasad, Chairman and Managing Director, National Insurance, “So far, we have received small claims aggregating less than Rs 6 crore due to destruction of stocks, rice mills and shops.
“No big claims, especially on the industrial front, have so far been reported. Some claims are yet to come in. We will have a better idea of the losses by the end of next week.”
The losses for New India Assurance, the country’s largest general insurance company, are estimated to be around Rs 20 crore, said a senior official.
While the Odisha Government has pegged the losses to the power sector at Rs 900 crore due to massive damage to transmission and distribution equipment, including electric lines, substations, grid stations and electric poles, the insured losses are likely to be limited.
Amarnath Ananthanarayanan, Managing Director and CEO, Bharti AXA General Insurance, said, “While there has been severe damage to property and power infrastructure, since most of them are not insured, the losses will not be very big.”
Tapan Singhel, Managing Director and Chief Executive Officer of Bajaj Allianz General Insurance, said his company so far has received total claims, including automobile claims, of Rs 2.5 crore.
The losses for Bajaj Allianz General Insurance will be limited as the insurer has not underwritten hydropower projects in the region, he added.
In July this year, the general insurance industry incurred an estimated Rs 1,500-crore loss from claims in the Uttarakhand region, which was hit by cloud bursts and heavy flooding.