Insurance firms release Rs.374 crore towards Hudhud claims

January 04, 2015 12:18 pm | Updated November 16, 2021 06:15 pm IST - VISAKHAPATNAM

Fourteen insurance companies have released Rs. 374.83 crore towards claims over damages and losses suffered by various industrial units in business firms in and around the city in the aftermath of Cyclone Hudhud.

In all, the insurance companies received 5,953 claims and settled 5,313 barring a few due to documentation and other technical glitches. Oriental Insurance, United India Insurance, New India Assurance and National Insurance were leading in settlement within a short time.

Depreciation of 10 to 20 per cent, standard deduction of 10 to 20 per cent and salvage value had been taken into consideration at the time of settlement after deputing surveyors from various parts of the country.

As part of breakdown insurance, a few units have also claimed compensation for process loss. Most of the policy-holders received compensation in the range of 30 to 50 per cent of their claims.

Thanking the insurance companies for prompt settlement, Confederation of Indian Industry (CII) former zonal chairman G. Sambasiva Rao and Vizag Development Council vice-president O. Naresh Kumar told reporters on Sunday that they were happy with the speed with which settlements had been made and observed that the level of awareness was not much.

Awareness meet

CII would hold an awareness meeting in the city next month by involving representatives of various insurance companies to allay misapprehensions among the industries and business community on insuring their properties, processes and other facilities.

Mr. Sambasiva Rao and Mr. Naresh Kumar said many do not show interest to increase their insurance coverage once they add certain machines or facilities. One had to pay dearly for default in payment of premia, they stated.

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