EARTHQUAKE DEVASTATION KEEPS INSURANCE COMPANIES BUSY
GANGTOK, 16 Oct: Over 500 claims totaling to over Rs. 15 crore have landed with the three nationalised insurance companies in the State [which insure buildings] from people from all over Sikkim for damages incurred to dwellings due to the 18 September Earthquake. The number of claims, along with the total claim amount, is rising ever day as claimants make their way to their insurance companies with their claims of damages incurred.
As for the insurance companies, they are working overtime being flooded with claims, accepting the claims, associated documents, contacting their respective head offices to depute surveyors to assess the damage and amounts being claimed by each individual and finally, disbursing the actual claim amounts.
The claim amounts are being handed over only after the reports of the independent licensed surveyors are received. As such, there are always differences between the amount claimed by the individual for damages and the actual damage assessed by the surveyors.
In fact, some of claims made by people have turned out to be ‘No Claims’ as well. This means that the claims made are outside, or in violation, of the terms and conditions of the insurance cover. For example, the house-owner who has insured a 4-storied structure cannot claim insurance for an additional storey which he may have added to the 4 storeys. Then again, a residential house being used for commercial purposes cannot lay claim to insurance as the damage could be due to the extra weight, it is informed.
In such cases, the insurance companies will not pay for the damages.
There are certain terms and conditions applicable to such insurance claims; certain documents have to be produced along with the claim estimate which is an estimate to rebuild or repair the damaged portion of a structure.
The three nationalized insurance companies in Sikkim, namely, Oriental Insurance, New India Insurance and National Insurance have already deputed surveyors and are now in the process of collating reports to compute individual claims.
However, as mentioned, new claims continue to pour in with at least another 100 claims expected to come in, especially from Somabria and Darap in West Sikkim and also from Chungthang in North Sikkim, it is informed.
National Insurance has already started disbursing the claim amounts. Its Assistant Manager, KB Neopaney, informs that the amount claimed so far amounts to over Rs. 5.20 crore with more claims still coming in. The company has provided what is probably the highest claimed amount of Rs. 60 lakh to a person from Pegong, North Sikkim who had a stock insurance of the same amount.
Similarly, Mohan Gurung, whose building collapsed at Chongay was handed Rs. 17 lakh as claim money and the owner of the collapsed building at Lumsey, East Sikkim was handed over Rs. 23 lakh by National Insurance.
As Mr. Neopaney says, the company is targeting to dispose 40% of the claims before Diwali next week.
While National Insurance engaged six IRDA-licensed surveyors, Oriental Insurance engaged 8 such surveyors from Kolkata and Siliguri, informs A.O RN Banerjee.
Thus far, Oriental Insurance has received 86 claims amounting to a tentative figure of Rs. 2.88 crore. Of the 86 claims, around 12 to 15 involve those for damage to BSNL mobile towers. Among the higher claims received by Oriental Insurance are claims of Rs. 18 lakh from Singtam and Rs. 20 lakh for damage to a BSNL mobile tower.
New India Insurance has received nearly 300 claims with the total claimed amount between Rs. 8 to 10 crore. The company had engaged 3 surveyors.
It needs to be mentioned here that all claims made by individuals will be verified by the surveyors and the final amount to be given only after their report comes in. It has been stated that there is a tendency to enhance the claim amount in terms of the damages incurred. It is the job of the independent surveyors to verify all claims.
Claims are also being registered on phone, informs RN Banerjee of Oriental Insurance whose company has also received a large number of claims for damages incurred to vehicles due to the earthquake. Both Oriental and National Insurance have a Standard Fire and Special Perils Policy under which insurance claims for damages due to earthquakes are covered.
Dispelling rumours, officials at these companies clarified that there were no plans of suspending or discontinuing with the policy in Sikkim post the earthquake in view of the large number of claims. As Mr. Banerjee says, the companies have the capacity to cover the claims and assured that there will be re-insurance as well.
GANGTOK, 16 Oct: Over 500 claims totaling to over Rs. 15 crore have landed with the three nationalised insurance companies in the State [which insure buildings] from people from all over Sikkim for damages incurred to dwellings due to the 18 September Earthquake. The number of claims, along with the total claim amount, is rising ever day as claimants make their way to their insurance companies with their claims of damages incurred.
As for the insurance companies, they are working overtime being flooded with claims, accepting the claims, associated documents, contacting their respective head offices to depute surveyors to assess the damage and amounts being claimed by each individual and finally, disbursing the actual claim amounts.
The claim amounts are being handed over only after the reports of the independent licensed surveyors are received. As such, there are always differences between the amount claimed by the individual for damages and the actual damage assessed by the surveyors.
In fact, some of claims made by people have turned out to be ‘No Claims’ as well. This means that the claims made are outside, or in violation, of the terms and conditions of the insurance cover. For example, the house-owner who has insured a 4-storied structure cannot claim insurance for an additional storey which he may have added to the 4 storeys. Then again, a residential house being used for commercial purposes cannot lay claim to insurance as the damage could be due to the extra weight, it is informed.
In such cases, the insurance companies will not pay for the damages.
There are certain terms and conditions applicable to such insurance claims; certain documents have to be produced along with the claim estimate which is an estimate to rebuild or repair the damaged portion of a structure.
The three nationalized insurance companies in Sikkim, namely, Oriental Insurance, New India Insurance and National Insurance have already deputed surveyors and are now in the process of collating reports to compute individual claims.
However, as mentioned, new claims continue to pour in with at least another 100 claims expected to come in, especially from Somabria and Darap in West Sikkim and also from Chungthang in North Sikkim, it is informed.
National Insurance has already started disbursing the claim amounts. Its Assistant Manager, KB Neopaney, informs that the amount claimed so far amounts to over Rs. 5.20 crore with more claims still coming in. The company has provided what is probably the highest claimed amount of Rs. 60 lakh to a person from Pegong, North Sikkim who had a stock insurance of the same amount.
Similarly, Mohan Gurung, whose building collapsed at Chongay was handed Rs. 17 lakh as claim money and the owner of the collapsed building at Lumsey, East Sikkim was handed over Rs. 23 lakh by National Insurance.
As Mr. Neopaney says, the company is targeting to dispose 40% of the claims before Diwali next week.
While National Insurance engaged six IRDA-licensed surveyors, Oriental Insurance engaged 8 such surveyors from Kolkata and Siliguri, informs A.O RN Banerjee.
Thus far, Oriental Insurance has received 86 claims amounting to a tentative figure of Rs. 2.88 crore. Of the 86 claims, around 12 to 15 involve those for damage to BSNL mobile towers. Among the higher claims received by Oriental Insurance are claims of Rs. 18 lakh from Singtam and Rs. 20 lakh for damage to a BSNL mobile tower.
New India Insurance has received nearly 300 claims with the total claimed amount between Rs. 8 to 10 crore. The company had engaged 3 surveyors.
It needs to be mentioned here that all claims made by individuals will be verified by the surveyors and the final amount to be given only after their report comes in. It has been stated that there is a tendency to enhance the claim amount in terms of the damages incurred. It is the job of the independent surveyors to verify all claims.
Claims are also being registered on phone, informs RN Banerjee of Oriental Insurance whose company has also received a large number of claims for damages incurred to vehicles due to the earthquake. Both Oriental and National Insurance have a Standard Fire and Special Perils Policy under which insurance claims for damages due to earthquakes are covered.
Dispelling rumours, officials at these companies clarified that there were no plans of suspending or discontinuing with the policy in Sikkim post the earthquake in view of the large number of claims. As Mr. Banerjee says, the companies have the capacity to cover the claims and assured that there will be re-insurance as well.
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