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Saturday 13 September 2014

J&K floods may trigger higher motor claims than Uttarakhand

With the valley battling one of the worst floods in recent decades, general insurers are anticipating claims mostly from motor vehicles, shops and establishments and home inundated with water.

Bajaj Allianz which has a bancassurance partnership with the Jammu and Kashmir Bank is also monitoring the situation closely and expects auto loans to exceed losses on account of last year's floods in Uttarakhand. "We have a large number of insured assets that include motor as well as non motor. We anticipate the motor loss to be higher in J&K because the number of vehicles in the region is more as Srinagar is a big city when compared to Uttarakhand," Vijay Kumar, chief technical officer, motor insurance, Bajaj Allianz General Insurance said. The company recently set up a dedicated helpline to assist customer register claims.

"Going by reports of damage there will be an additional loss on the motor front during this quarter," G Srinivasan, chairman and managing director, New India Assurance said. He added that as the flood waters have not receded and communication facilities are yet claims have not yet been registered so far."

"The total losses in Uttarakhand were higher as the region is home to numerous industrial units and power plants," Srinivasan said. The company net loss (post reinsurance) due to the Uttarakhand floods stood at Rs 50 crore last fiscal.

Milind Kharat, chairman and managing director, United India Insurance also said that the losses on account of J&K floods were expected to be lesser than the Rs 850 crore company's losses in Uttarakhand floods last year. "While we anticipate more claims from J&K on account of the density of the population, but the average claim size would be lower as it's largely a tourist spot," Kharat said. He added that the company has readied seven surveyors to travel to the region to assess the loss once the water recedes.

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