BackPost cyclone Phailin, insurers expect flood of crop claims
The insurers don't expect much claims from the commercial space
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Mumbai: General insurers are likely to get soon claims worth a few hundred crores from crop and weather insurance segments as super cyclone Phailin and subsequent floods had left a trail of devastation in coastal districts of Odisha and some regions in north-eastern Andhra Pradesh.
The insurers, however, don’t expect much claims from the commercial space.
“We don’t see much claims from commercial line of business from this natural disaster. However, there may be claims of a few hundred crores from crop and weather insurance segments as much of the standing crops have been damaged due to the floods after the cyclone," Reliance General Insurance chief executive Rakesh Jain told PTI.
Cyclone Phailin that hit the east coast on 12 October had left a trail of devastation across coastal districts of Odisha and some regions in north-eastern Andhra Pradesh. As per the Odisha government, more than 6 lakh hectares of paddy, non-paddy and horticultural crop were damaged due to the cyclone and the subsequent floods.
An official from HDFC Ergo General Insurance said it is difficult to estimate the amount of claims from the disaster.
“It is difficult to put a number to the amount of claim that will arise. However, there will be some claims that will come from the crop insurance segment," said HDFC Ergo marketing and strategy planning head Mukesh Kumar.
Earlier, Bajaj Allianz General Insurance had said the claims from the cyclone would not be too high as commercial installations had largely remained unaffected. PTI
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