General insurance company, New India Assurance has advised the Andhra Pradesh government to take disaster cover for losses arising from the severe catastrophe as it located in coastal region.
Disclosing this, G Srinivasan, CMD of New India Assurance said, “We have proposed the state government to cover for loss of life and personal property.”
The states bordering the coastal area are usually victims of cyclones and floods and state insurance companies are often forced to speed up the settlement by government with minimum documentations. The suggestion is made to ensure that even those who have not taken insurance would be covered if the state government takes a universal cover. The move may also be triggered by the Jammu & Kashmir High Court ruling that said that insurers should settle claims immediately before conducting survey in J &K floods.
Srinivasan said that insurers expect claims to be in the range of Rs 3000 crore for floods in Jammu & Kashmir and Hudhud Cyclone in Vizag. He added that they may not be many claims on account of Cyclone Nilofer which hit Gujarat since it is not too severe.
“We have received 2800 claims valuing Rs 200 crore for floods and Rs 800 claims valuing Rs 300 crore for the cyclone,” said CMD. New India Assurance will suffer a loss of Rs 50 crore each due to cyclone ..
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