AP floods: Quantum of insurance claims may outpace 2015 Chennai floods

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The general insurance companies are set to feel a significant impact even as the flood-related claims in Andhra Pradesh keep burgeoning. As per the estimates of the State Transport Department, 1.51 lakh vehicles were either fully or partially damaged in Vijayawada and its surrounding regions in NTR district as they were submerged in floodwater .

“The data has been prepared on the basis of existing vehicle registrations in the flood-hit regions. This might go up if we include other districts of the State,’‘ a senior official told businessline.

As per the official data, out of 1,51,729 vehicles registered in the flooded regions of the city, there are 21,459 cars, 8,200 commercial vans/trucks, 556 buses and 1.14 lakh two-wheelers. According to the complaints received, around about 100 vehicles were also washed away in the sudden floods. “Vijayawada is a logistics hub and many commercial and heavy vehicles were also damaged,’‘ the official said.

The floods were caused by unprecedented water discharge of 11.45 lakh cusecs from the Prakasam barrage, which is the highest discharge since 1903. Three breaches to the Budameru river also worsened the situation. Rainfall measuring 40 cm was recorded for two days in succession. 

CLAIMS

All private and public sector general insurance companies have set up separate counters in the city to facilitate easy filing of claims and processing. 

The Insurance Regulatory and Development Authority of India (IRDAI) has already issued special instructions to the life and general insurers to hasten the claim settlement process in view of the seriousness of the calamity.  Chief Minister N Chandrababu Naidu also requested the insurance companies to speed up the process. 

“We are expecting more vehicle insurance-related claims. We are yet to ascertain the quantum of claims to be staked as there was also considerable loss of properties as well. It could be something on par with the claims staked in 2015 Chennai floods,’‘ a senior official of a private general insurance company said.

As per the industry data, 2015 Chennai floods attracted about ₹4,800 crore worth of claims. As per the status report released on Tuesday morning, 46 lives have been lost so far due to the rains and floods in the last 10 days. While 261 areas were inundated, 99 of them are yet to be restored. Crops in 1,96,00 hectares were affected and over 2.40 lakh farmers in 16 districts were impacted.