GIC Re to implement construction codes in disaster prone areas

With the recent flashfloods at Uttarakhand acting as a wake up call, GIC Re chairman cum managing director Ashok K Roy said the reinsurer would insist on proper implementation of construction codes in disaster prone areas to avoid mass devastation.

“We have begun preparing a “hazard map” to identify disaster prone areas to avoid loss in case of natural calamities,” said Roy.  He further said that premium for insuring properties in those areas may be higher and there could be a mechanism whereby insurance companies can refuse claims if insured entities don’t follow rules.

“We have to learn to live with hazards and natural disasters,” said Roy. The general insurance industry may face an estimated loss of Rs 3,000-4,000 crore to settle the claims from damaged power projects, motor vehicles and to fulfill the personal accident risk