Insurance claims may go up following cyclone Vardah in Chennai

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Following the damage caused by cyclone Vardah in Chennai, it is expected that the insurance companies will witness a considerable number of claims the total value of which may go up to Rs. 350 crore and above. Recently, the coastal parts of Chennai were badly hit by cyclone Vardah on December 12. The cyclone heavily affected the major segments of the city such as automobiles, go downs, warehouses and small scale business units that suffered massive losses.

According to JS Dahiya, the General Manager of United India Insurance Company, a huge number of claims are coming in from various parts of Chennai. So far, the company has received nearly 250 claims worth Rs. 80 crore, and it is expected that the total claim value will go up to ₹200 crore. The claims are mainly coming from areas like Chennai and Puducherry.  Likewise, the New India Assurance is also reported to have received more than 800 claims having a total value of nearly Rs. 100 crore. SBI General Insurance has received 200 claims, approximately worth Rs.40 crore. According to Pankaj Verma, the Vice President-Claims, SBI General Insurance, the company has received claims mostly from small units and industrialists, and is expecting some more claims.

This is the fourth year in a row that these general insurance companies are experiencing losses due natural catastrophes in the reign. They also experienced losses when Chennai was devastated by the unprecedented flood in 2015. If such large scale damages caused by such natural calamities continue, it is predicated that insurance companies may increase premiums rates to compensate their losses. Meanwhile, the Centre  is also planning to launch an exclusive insurance plan to cover damages caused by natural calamities.

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