State-owned reinsurer GIC Re will bear the brunt of the Nepal earthquake that has caused widespread damage to industrial and commercial property.
“We are the largest international reinsurer in the Nepal market and we have sent a team of 10 surveyors to assess the loss,“ said AK Roy, chairman and managing director GIC Re, which accounts for about a quarter of the total insurance in the Himalayan country.
Roy added, “We will have loss estimate in the next two-three days. We have kept surveyors as the backup.“
The Insurance Regulatory Authority of Nepal, or Beema Samiti, requires companies to cede 50% of insurance within the country .
A massive earthquake, measuring at 7.9 on the Richter scale, rocked Nepal on Saturday, followed by another one measuring 6.7 on Sunday, impacting some parts of India as well. The worst earthquake to hit the region in 80 years brought down several buildings and centuries old temples in Nepal.
While the quantum of insured loss due to destruction is yet to be assessed, claims will come from home insurance policy that provides cover for any damage to the property and contents due to natural or manmade calamities, including earthquake. Rates depend on the area and the frequency. There are four seismic zones -Zone I, Zone II, Zone III and Zone IV .
Private sector insurer Bajaj Allianz General Insurance came out with a dedicated helpline number for victims of the earthquake that struck northern and eastern parts of the country.A special team has been formed in the company to handle these cases and it will make efforts to settle claims on priority.
State-run insurer Life Insurance Corpo ration of India (LIC) is also set to be hit by claims from the earthquake.Life Insurance Corporation of Nepal -a joint venture between LIC (55%) and Vishal Group of Nepal (25%) -is one of the top two insurance companies in Nepal. “We expect some claims since we are among the top two insurers in Nepal and we will know about the claims in the next few days,“ said an LIC executive.
Source: Economic Times