Large number of the claims still unsettled

Friday 04, November, 2005 The incessant rainfalls on July 26th has led to tremendous loss of human and property alike. The insurers have received large number of claims due to this disaster. This figure has been so large that it has left a huge chunk of claims unattended. One might have to wait even for a year to get the claims settled. According to the IRDA data, around 58% of the claims that poured in after the torrential Tuesday needs to be settled. This figure is equal to 85% of the claimed amount, which is unpaid. However the scenario with private insurance companies seems to be pretty positive. They have settled 53% of the total claims whereas the number with public sector is 38%. The private companies have settled 31% of the total amount of the claims. The shortage of loss surveyors and volume of the claims are seen as the reasons of low level of claim settlements. For instance there are only 200 fire surveyors in Mumbai. There is definitely need for more loss surveyors. Once this is catered to, the procedure of settling claims might speed up. According to the sources in IRDA, around 23,199 claims have been settled so far with an average of 250 claims on a daily basis. The other reason for the delay in claims is the salvage recovery with respect to large stock claims. Besides, the machinery claims are awaiting bills for the repairs and the necessary verifications. Apart from this, replacement estimates are also hindering the procedure.

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