50% OF INSURANCE CLAIMS RELATING TO DISASTERS & FIRE ARE IN DISPUTES: GIC CHIEF

50% OF INSURANCE CLAIMS RELATING TO DISASTERS & FIRE ARE IN DISPUTES: GIC CHIEF

50% OF INSURANCE CLAIMS RELATING TO DISASTERS & FIRE ARE IN DISPUTES: GIC CHIEF

No.PR-81
August 7, 2014
New Delhi

50% OF INSURANCE CLAIMS RELATING TO DISASTERS & FIRE ARE IN DISPUTES: GIC CHIEF

50 per cent of insurance claims relating to disasters and mishaps, arising out of fire and marine mishappenings lay unsettled and unresolved in insurance companies on account of faulty and inaccurate risk assessment conducted by surveyors, causing anguish to the insurers in the last few years, says Mr. Ashok Kumar Roy, Chairman and Managing Director, General Insurance Corporation of India (GIC).

Inaugurating a Seminar on Risk Assessment and Commercial (Fire & Marine) Insurance Claims, organized by PHD Chamber of Commerce and Industry here today, Mr. Roy said that the natural calamity that swept away assets and properties including human lives in Uttarakhand last year, more than 50 per cent of insurance claims of affected parties were yet to be entertained by the insurance companies concerned.  He suggested fast-tracking such delays in settlement of claims. 

It is because of faulty assessments and inaccurate claims of the losses assessed by personnel concerned that the insurers are still suffering as their claims lay un-assessed and disbursement being halted, said the Chairman and Managing Director, GIC.

He, however, hoped that with foreign direct investment limit going up to 49 per cent, the competition will intensify in the insurance sector to benefit insurers in terms of reduced premium for insurance policies including insurance premium for unforeseen circumstances.

Roughly, more than 50 per cent of insurance claims relating to fire activities and other such exigencies that happen on commercial and individual and properties are still to be settled due to disputes and inaccuracies, reported in the analysis and descriptions of lost properties, mostly by surveyors, said Mr. Roy demanding corrections in the methodologies of risk assessment.

Insurance sector, according to him would grow at the rate of 30 per cent year on year basis in times to come and discrepancies in it had to be resolved as early as possible so that insurers get their claims realized and the sector face no hindrances in terms of its expansion.

In his welcome remarks, Mr. Alok B Shriram, Senior Vice President, PHD Chamber  said “after liberalization of the Indian insurance industry in the year 1999- 2000, the Indian general insurance industry has witnessed rapid growth. Infact, the growth in the general insurance industry has kept pace with the nominal GDP growth rate resulting in general insurance penetration remaining stable. As per the latest Swiss Re sigma report the premiums as a percentage of  GDP stands at 0.79 %. However, it is still far below the Global average of 2.8% and a very potent 4.3% for advanced economy like the USA”.

Mr. Yogesh Lohiya, Chairman, Insurance Committee, PHD Chamber in his presentation pointed out that the real premium growth in percentage (inflation-adjusted) currently stands at 4.12 %. While the insurance industry growth is dominated by Motor and Health, the other segments still struggle to move out of the shadows cast by the challenges and uncertainties of the last few years across the globe. The strong fundamentals of the industry shall be needed to be well positioned for a proper roadmap to be drawn for sustainable long-term growth.

Among other, who also participation in the Seminar comprised Mr. Suresh Mathur, Sr. Joint Director, IRDA; Mr. S K Sethi, Co-Chairman, Insurance Committee, PHD Chamber and Mr. Sanjeev Gupta, Chairman, Banking & Financial Services Committee, PHD Chmaber.
ENDS
Koteshwar Prasad Dobhal
Consultant (PR)