By Shine Jacob
Yet another first week of December brought familiar scenes of rain, storm, flooding, power outages, and fallen trees. When Cyclone Michaung wreaked havoc, leading to the heaviest rainfall in 47 years in the city, residents of Chennai drew parallels to the devastating floods of 2015.
However, initial data on insurance claims suggests that the impact this time may portray a more optimistic scenario. According to data shared by industry sources, the proactive response from both authorities and the public contributed to a significant reduction in claims, with a 30-35 per cent decrease in motor and non-motor insurance, compared to the 2015 floods.
This is despite the number of policies issued across India by general insurers (other than standalone health insurers and specialised insurers) increasing 74 per cent in 2021-22 compared to 2014-15. On the other hand, the claim settlement process is taking an average of around 50 per cent less time in 2023 due to efficiency in the system.
According to reports, insurance companies took a hit of around Rs 4,800 crore due to the claims of the 2015 floods in Chennai and nearby areas. Non-motor insurance includes home, health, travel, and liability insurances, among others.
The Michaung cyclone in 2023 saw a more proactive response from the public, with heightened awareness and precautionary measures.
This proactive approach has played a crucial role in mitigating the impact of losses, resulting in a decrease of approximately 30 to 35 per cent compared to the devastating floods of 2015, said TA Ramalingam, chief technical officer, Bajaj Allianz General Insurance.
The company added that the current assessment is based on the available data and claim intimations.
With more information and claim reports in the coming days, a more comprehensive picture will emerge, it said. According to Shriram General Insurance Company, the number of policies issued across India was seen at 205.5 million in 2021-22, compared to 118.2 million in 2014-15.
Rains and the consequent floods damaged many vehicles, business premises and factories.
