Amphan cyclone: Insurers estimate losses up to Rs 1,000 crore

With the general insurers receiving mostly property and motor claims after cyclone Amphan caused widespread distructions in West Bengal and Odisha, the insured losses from the calamity could be in the range from Rs 800 crore to Rs 1,000 crore.

With the general insurers receiving mostly property and motor claims after cyclone Amphan caused widespread distructions in West Bengal and Odisha, the insured losses from the calamity could be in the range from Rs 800 crore to Rs 1,000 crore.

The powerful cyclone struck the two eastern states on May 20. It devastated cities and villages, snapped power lines, and left vast tracts of land under water. General insurance companies have said their survey teams are visiting the affected places to inspect physically in order to assess the damage.

“Amphan cyclone has caused widespread damage in West Bengal and Odisha. The insured claims are getting intimated to insurance companies on an ongoing basis. The insured losses due to Amphan could be in the range of Rs 800 crore– Rs 1,000 crore,” HDFC ERGO General Insurance MD & CEO Ritesh Kumar told FE.

“We had issued notifications to our customers through various channels of communication like newspapers, WhatsApp and emailers so they may reach out for any claims due to the damage caused by this natural calamity. We have so far received about 80 motor insurance claims and about 40 commercial claims. We expect more claims to be filed over a period of time,” Kumar added.

State-run National Insurance Company (NIC) has so far received claims of around Rs 160 crore, and the survey and loss assessment works are in progress. “National Insurance Company has so far received over 500 claims related to the cyclone. Majority of these claims are from West Bengal and a few are from Odisha,” said Tajinder Mukherjee, chairman-cum-managing director of NIC.

“Most of these claims are property related and that too mainly from commercial enterprises like manufacturing units, factories, projects, shops and godowns etc. As of now, the number of motor insurance claims reported is less than 100,” Mukherjee told FE.

On crop insurance, she said the harvest season was almost over when the cyclone Amphan struck. “In crop insurance, we have exposures in a few districts of West Bengal. Affected areas have already been inspected. Fortunately, the harvest season was almost over when the cyclone struck. We do not have any crop insurance exposure in Odisha,” Mukherjee said.

“We will certainly simplify the procedures for the cyclone related claims as we had done earlier for such catastrophic events,” she added.

ICICI Lombard General Insurance has so far received as many as 165 property claims and 51 motor claims. “As per the data released by the authorities in Kolkata, more than 13 million people have been affected — some losing houses, crops and lands — and over 1.5 million homes have been damaged. The losses are estimated at an amount exceeding approximately Rs 1 lakh crore for property as well as personnel assets,” said Sanjay Datta, chief – Claims, Underwriting and Reinsurance, ICICI Lombard.

Insurance regulator Irdai has directed all general insurance companies and stand-alone health insurance companies to initiate immediate steps for quick registration and disposal of claims. “As you are aware, cyclone Amphan has caused immense loss to property in the parts of Odisha, West Bengal and other neighbouring states. The general insurers may have written policies that extend to lives and property located in the affected areas. Hence, there is an urgent need for the insurance industry to take immediate steps to mitigate the hardships of the affected insured population by ensuring immediate registration and settlement of eligible claims,” the Irdai said on May 22, issuing the guidelines on insurance claims of victims of Amphan.