POSTED BY March 22, 2011 3:58 pm COMMENTS (2)ON
How would be the scenario of insurance claims in the event of Natural Calamities? I pray that God should forbid what I am saying, but if something like Japan incident happens in India, will the insurance companies reject the claims? Are there any examples or case studies learnt from other countries during such kind of Disasters regarding the Claims of Life/Health insurance policies??
Particularly, when people have taken policies with large amounts of Sum assured through Term plans? Please throw some light on this. If the insurance companies decline such claims, what is the use of Insurance? One may say that, the calamities are rare to happen. But unfortunately, Natural as well as man-made disasters are often seen in India too, with the prediction (scientific & astrological also) of more things yet to happen.
How is the Life insurance sector going to deliver during the odd times?
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2 replies on this article “Insurance claims in the event of Natural Calamities”
Dear Mohan, For your query, let me quote an Indian example. In the famous 26th July 2005 rains in Mumbai. A large no. of cars were damaged in water logging & flooding. To process those one time extra ordinary large no./ of claims at a single locations, Almost all general insurers had called their respective staff from other cities. Special counters, desks & offciers were designated to process these claims & these claims were processed with a great speed.
In this same rain, the life insurance claims were not significant, hence I’m not quoting anything for it.
Insurance companies in Japan are badly hit by the natural calamity which happened recently . Here is a report
Insurance companies are looking at billions in losses from the earthquake and tsunami in Japan, with one early estimate placing the figure as high as $35 billion.
German reinsurer Munich Re said Monday, however, that private insurers do not face a significant bill from damage to Japan’s nuclear power plants.
AIR Worldwide, a Boston-based specialist in catastrophe modeling, said over the weekend that insured property losses could range between $15 billion to $35 billion.
AIR added that its earthquake model for Japan doesn’t include the effects of a tsunami. Friday’s earthquake triggered a huge tidal wave which wiped out homes and businesses, with 2,800 deaths confirmed Monday.
The Lloyd’s of London insurance market said it was too early to estimate its losses.