The insurance firms seem to have been hit very badly by the recent Hudhud Cyclone that hit Uttarandhra and some parts of Odisha. According to the estimations of USA-based catastrophe modelling firm AIR Worldwide, the insurance companies may have to shell out 2400 Crore as compensation to its customers.
The firm estimated three per cent for residential lines, 20 per cent for commercial, and 30 per cent for industrial segments of the affected areas to have the insurance cover and thus estimated the loss. But in reality the figures may be even big.
Visakhapatnam city which was badly battered by the cyclone has higher insurance penetration compared to the average elsewhere in Andhra Pradesh and naturally the insurance cover will be high.Also the insurance companies are in tremendous pressure to address the claims as soon as possible. Andhra Pradesh Chief Minister Chandrababu Naidu has promised the representatives of the damaged industries to make sure their insurance claims are processed by this month end. And the government has already put in substantial pressure on them according to the sources.
