“Claims are likely to be less than the flash-floods in Uttarakhand because the penetration of insurance cover in cyclone-affected areas is less,” said Amarnath Ananthanarayanan, managing director and chief executive director, Bharti AXA General Insurance. “According to the news, major destruction has happened in the coastal areas having farms and temporary structures, where insurance penetration is low.”
Insurers expect that a majority of the claims would relate to loss of property and vehicles, as residents were evacuated from the cyclone-affected areas in advance, and loss of life was minimised.
“It is too early to quantify the loss but we expect a majority of the claims to come from property and motor insurance,” said a senior official of a general insurance company. “Currently coastal areas are facing heavy rains,” he said.“We will send the team for survey after the situation gets better there.”