About 90 per cent of total insurance claims of Rs 2,700 crore on account of Hudhud cyclone have been settled by the insurers, according to to M Ramaprasad, Member (Non-Life), Insurance Regulatory and Development Authority (IRDA).

Speaking to newspersons on the sidelines of a convocation ceremony of the Institute of Insurance and Risk Management (IIRM) here on Thursday, Ramaprasad said the steel plant and Hinduja Power had claimed the highest losses of roughly over Rs 500 crore each due to Hudhud cyclone which hit Andhra Pradesh October last year.

General insurance claims have been almost entirely paid by the public sector insurers. When asked on the likely impact of the huge claims on the insurers, the official said: "Except a smaller extent to which they were prepared to take hit on their balance sheet, the rest of the amount would be paid back to them by the reinsurers.''

However, since the reinsurance claims have been made, reinsurance premium might go up for these insurance companies now, Ramprasad added.

Combined with the claims made on account of J&K floods last year, the total hit on public sector insurers was to the tune of Rs 4,700 crore. "`Now that the two natural disasters have hit in a short span of time, it is little difficult for the insurers,’’ he said.

The regulator is now reviewing the possibility of bringing down the maximum period of claims settlement from the present 30 days and is in consultation with all stakeholders.

Related Topics