Rs 500-crore hit due to Mumbai floods

Insurers are set to take a hit of Rs 500-crore from recent Mumbai floods, with most of the claims expected to come from the motor and health segments and shops that faced damage due to water logging. As compared to the claims after the 2005 Mumbai floods and the Chennai floods of 2015, when insurers had to shell out Rs 3,000 crores and Rs 5,000 crores, the claims for 2017 floods would be very small. Insurance companies, on their part, had sent out messages on how to mitigate losses arising out of vehicle damage-a segment where they took the maximum hit 12 years ago. “Claim is most likely to come under motor insurance, health and shopkeeper’s insurance. The situation was better compared to last Mumbai floods in 2005 and people did not crank their cars,” said Sanjay Datta, chief of underwriting and claims, ICICI Lombard General Insurance. Future Generali said it is making sure that documentary requirements were kept to the bare minimum. “We have conveyed that the conditions of claims are waived to settle claims fast,” as mentioned in a statement.