Nepal quake: Major insurance claims from property damages expected

Insurers begin surveys; easier claim payouts to be facilitated

The strong earthquakes emanating from Nepal on Saturday and Sunday are expected to lead to major insurance claims for property damage. Insurer companies have put surveyors on the job of assessing claims and ensuring these are settling efficiently and quickly.

Private sector insurers do not have direct exposure to Nepal; some claims from Bihar and Uttar Pradesh are expected on the life side. Motor insurance claims will also come in, due to the extensive damage to vehicles.

“Insurance offices have also been damaged and communication is also difficult; hence, we have not been able to get in touch with our officials. Claims from property damage are expected to be much higher than those from loss of lives, since not many people might be insured,” said a senior public sector executive.

Life insurance and general insurance companies with some exposure to claims in Nepal and some parts of India are looking for ways to make the payment process simpler.

“We understand the sensitivity of the issue and will  ensure all life and property claims are settled in a time-bound manner. Minimum documentation will be required for death claims,” said an executive in a life insurer.

Government-owned National Insurance and Oriental Insurance have exposure in Nepal through branches, as  do GIC Re in reinsurance. The public insurers say local officials would be on the job. Bajaj Allianz General Insurance has announced a dedicated helpline number for the victims. A customer can, through this number, register a claim or seek other help. A team has been formed in the company to handle these cases.

Estimates suggest property damage would be Rs 70-80 crore. How much would be Indian insurers’ share is unclear.

Insurers will also adhere to any claims’ relaxation norms prescribed by the Beema Samiti (Insurance Board) of Nepal, the sector regulator.