Only one third of Claims from Amphan Cyclone settled

Insurance companies settled 29.72 per cent of the amount claimed by people and entities affected by cyclones and floods in 2020-21, even as the number of claims declined during the year.

While insurers got 34,304 claims for Rs 2,559 crore in cyclones and floods in 2020-21, they settled 27,576 claims for Rs 760.68 crore. As many as 3,428 claims for Rs 1,705 crore are still pending before insurers, according to the Annual Report of the IRDAI.

In the previous year, insurers received 1,40,804 claims for Rs 3,399.61 crore due to cyclones and floods with cyclone Fani reporting maximum claims of Rs 1,190.59 crore. In 2020-21, the maximum number of claims at 14,575 were from damages caused by cyclone Amphan. Insurers settled 11,512 claims for Rs 470.94 crore, while 1,693 claims for Rs 1,235.77 crore are yet to be cleared.

After the Telangana floods last year, 7,041 claims for Rs 329.83 crore were reported but insurers settled only 5,510 claims for Rs 151.30 crore, IRDAI said.

Further, insurance companies settled only 2.84 per cent of the amount claimed due to cyclones Tauktae and Yaas in the quarter to June 2021. As on June 30, 2021, claim amounting to Rs 1,351 crore were reported by 18,194 claimants due to cyclones Tauktae and Yaas and of this, claims totaling Rs 38.40 crore were settled to 6,671 claimants. “Disposal of pending claims at various stages is being monitored by the Authority regularly,” the regulator said.

In 2021, cyclones Tauktae and Yaas caused losses to property in some parts of the country. The year 2020 saw the occurrence of several natural catastrophic events in various parts.

While in May 2020, cyclone Amphan created havoc West Bengal and Odisha, cyclone Nisarga had a similar impact in Maharashtra, Gujarat and other neighboring states in June 2020. There were floods in the states of Telangana, Andhra Pradesh, Karnataka and Maharashtra in October 2020. In November 2020, cyclone Nivar caused loss to property in some parts of the country.

“The Authority issues guidance to the industry during catastrophes, keeping the interests of policyholders affected, in view,” IRDAI said. According to the insurance watchdog, in respect of the majority of the cases, claims are outstanding due to reinstatement of property not having taken place. It further said, “There are also some instances of the required documents not having been submitted by the insured due to lockdown. However, on account payments have been made in several instances.”

During 2021-22 too, IRDAI issued guidance to insurers to attend to the claims arising out of the above events promptly, it said.