General insurers appear to be apprehensive in settling claims of Tsunami-hit people, especially those relating to property loss, as they are undecided whether to treat the catastrophe as an earthquake or a flood."Tsunami is a new phenomena. It neither fits the definition of flood or cyclone or earthquake - it is a combination of all these catastrophes," a senior insurer said today.General insurers are not ready to treat the disaster as a flood although most of the damage caused to property and other tangible assets were due to the sudden gush of water from the sea that inundated the eastern coastline of the country.The lack of clarity has created confusion among insurers who are not ready to settle the claims on property that are covered for floods but not insured against earthquake.Tsunami, a tidal wave triggered by a major earthquake, has hit India for the first time in living memory. It took thousands of lives and damaged property worth crores.The government and insurance regulator IRDA have asked insurers to settle claims promptly by relaxing some norms, but insurers are yet to assess the extent of loss till now.When contacted, GIC officials declined to hazard a guess on the possible damage and claims that may arise.So far, Tsunami was not covered specifically by Indian insurers. There is an apprehension among consumers that insurers may not fully settle the claims for property losses if they have not opted for the earthquake cover.
