The rising number of flood damage claims, pouring in from flood-hit states, has the general insurance sector worried.
Since late June, several states like Assam, Bihar, Gujarat Haryana and Rajasthan have been hit by devastating floods, leading to heavy loss of lives and damage to livestock as well as property. A majority of claims have been generated under the fire segment, reported Press Trust of India.
“It's a matter of concern that catastrophic losses which are essentially Black Swan events, are happening every year. This will put considerable pressure on property pricing,” state-owned National Insurance Chairman Sanath Kumar told the news agency. National Insurance Company has received a total of 209 claims so far from Gujarat and Assam with a value of around INR230 million (US$3.6 million).
Mr M N Sharma, a director of another government-owned insurer, United India, said:“We’ve made a provision of INR150 million for claim settlement. But we fear the figure may increase.”
The death toll from monsoon floods in India, Bangladesh and Nepal climbed above 1,200 as at 25 August. All three countries suffer frequent flooding during the June-September monsoon season.