Chennai floods are likely to result in decade-high insurance claims, if companies are to be believed. November 2015 saw Tamil Nadu receiving unusually heavy rainfall which resulted in widespread flooding across the state. As a result, people, businesses, vehicles, and structures all suffered a lot of damage.
India’s apex trade association, ASSOCHAM, has pegged losses to businesses due to flooding at a whopping Rs. 15,000 crore. Now, the insurance industry is bracing up for immediate claims amounting to Rs. 1000 crore.
Back in 2005, extreme weather conditions in Mumbai gave birth to flooding in the city. Mumbai floods prompted insurance claims worth Rs. 3000 crore. Officials foresee a higher amount of claims post the Chennai deluge.
Automobile manufacturers, service providers, IT sect, and small to medium level enterprises remain most affected due to Chennai floods. Chennai is India’s fourth-largest city and makes a 3% contribution to the country’s Gross Domestic Product (GDP).
Although it is too early to be making estimates about the actual amount of insurance claims, TATA AIG’s Ravichandran (while speaking to LiveMint) said that the total payout might settle in the range of tens of billions.
(Featured Image Credit: thehindu.com)
