1. INTRODUCTION:
All the insurance companies have received over hundreds of claims for damage to property in the aftermath of cyclone ‘Amphan’, which left behind a trail of destruction in West Bengal and Odisha. At least 86 people were killed and lakhs were rendered homeless after the cyclone battered a dozen districts in Bengal, including state capital Kolkata, on May 20, 2020. In Odisha the impact was little bit lesser. After cyclone Amphan caused widespread destructions in West Bengal and Odisha, the insured losses from the calamity could be in the range from Rs 800 crore to Rs 1,000 Crores.
2. The directive of IRDAI:
The General Insurers may have written policies that extend to lives and property located in the affected areas. Hence, there is an urgent need for the insurance industry to take immediate steps to mitigate the hardships of the affected insured population by ensuring immediate registration and settlement of eligible claims.
Insurers are advised to initiate immediate steps for quick registration and disposal of claims on the following lines:
- Please nominate a senior officer at the company level who would act as a Nodal Officer for the affected states. The Nodal Officer would be coordinating the receipt, processing, and settlement of all eligible claims. The Nodal officer should contact Chief Secretary/ Officer concerned of the state immediately and to be in regular contact thereafter.
- Similarly, District level Nodal officer may be appointed in each affected district to liaise with DM/District Administration.
- The contact particulars of the Nodal Officer may also be conveyed to us and the same may be given due publicity in the press and though State Govt. to enable immediate filing of Claims. In addition to this 24/7 help lines may be started.
- If there are any death claims and death certificate is difficult to obtain on account of non-recovery of body etc, the process followed in the case of Jammu & Kashmir floods (Notification of Ministry of Home Affairs, GoI, No. 1/12/2014- Vs (CRS) Dated 12.09.2014- which was also followed when recent floods and cyclone occurred), may be considered.
- Details of offices/ special camps set up for the purpose and other relevant details may be publicized through your website, media and through State Government channels to enable filing of claims.
- It needs to be ensured that all claims are surveyed immediately and claim payments/on account payments are disbursed at the earliest and in any case not exceeding the stipulated time-line.
- Adequate number of surveyors may be engaged immediately as required.
- Insurers are also requested to launch extensive awareness campaign in the affected states duly highlighting the measures taken by you.
- In view of Corona Virus (Covid-19) pandemic, the Insurers shall encourage the policyholders to use electronic communication wherever possible for correspondence while intimating the claim and filing all the relevant documents.
- All non-life insurers (including Standalone Health Insurers) are advised to submit information related to Cyclone Amphan (May 2020) insurance claims to General Insurance Council in the format already circulated by them.
- IRDAI requested the insurers to take urgent steps for expeditious settlement of claims in the cyclone hit areas and submit details of the same as advised above.
THE BASICS FOR THE INSURERS:
All the insurers had been facing shortage of manpower since the imposition of lockdown regulations, limiting the number of employees at office. At the same time it is found also the shortage of surveyors. A good number of surveyors are being engaged in this process where all of them may not to normally having the experience on what information or papers they should receive from the effected insurance policy holders for that expeditiously settling the claims, when the claim is lodged under Standard Fire & Special Perils Policies covering STFI Perils. The Surveyors are also in a hurry being amidst of huge numbers of claims to survey. That prompted me to come forwards with the checklist of documents to be taken from the insurers and the short & simplified report format to be adopted.
1. TENTATIVE CHECK LIST OF DOCUMENTS TO BE COLLECTED FROM THE INSURED:
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- Copy of the intimation given by the insured to the insurer.
- The statement of fact on the incident with damages – from the insured.
- The claim form – duly filled in by the insured.
- Photographs of all the damaged items.
- Policy copy – to know the coverage granted by the concerned insurer.
- Layout drawing of the affected Risk / Block.
- Estimate of loss – location wise with items & costs involved
- If raw materials, stock-in-process items and finished product are involved – process flow diagram.
- Total value of insured items.
- If the premises owned by the insured – ownership proof.
- Trade/ Factory Licence.
- MSME Certificate – since priority is given for them for immediate settlement by the insurers.
- GST Details – Registration Certificate, whenever involved.
- Pollution Certificate, whenever applicable.
- Fire Certificate.
- Balance sheet, wherever applicable.
- IT Return record.
- In case of Bank Loan / Cash Credit, Bank Sanction Letter & latest Bank statement Submitted to Bank.
- Purchase / Sales / Asset Registrars.
- Stock value on the date of loss.
Name & signature of INSURANCE SURVEYORS & LOSS ASSESSORS
Finally when the salvage matter is resolved then final survey report is to be submitted, as usual.
In case of Reinstatement Policy is issued the surveyor needs to confirm that the damaged items / properties / machines are really reinstated in fully working condition.
Finally when the salvage matter is resolved then final survey report is to be submitted, as usual.
In case of Reinstatement Policy is issued the surveyor needs to confirm that the damaged items / properties / machines are really reinstated in fully working condition.
