mumbai floods.. insurance companies rethink

Safin

Safin

Skilled
Hmm looks like the insurance companies are now going to drop the word flood from the cover policies. Like they dropped earthquake after Latur..

here is the article

Here’s a warning to the lakhs of Mumbaikars who are planning to insure their houses in the wake of the recent deluge. Read the fine print carefully. Public sector insurance firms are quietly planning to drop the word ‘flood’ from the policy.

As of now, a household insurance policy is basically a fire insurance policy, which also incorporates a flood insurance policy.However,with 10,000 policy-holders filing claims totalling Rs 1,500 cr, insurance firms are looking at new ways to keep their heads above water. After the last calamity—the Latur quake of 1993— insurance firms had dropped earthquakes from the household insurance policy.

Those wanting to insure their homes against flooding may now have to pay a separate premium. Confirming this development, Insurance Regulatory and Development Authority member P A Balasubramanian told TOI that senior officials from the General Insurance Company had met IRDA to discuss the issue last week. IRDA is the nodal authority that approves changes in the policies made by insurance companies.

"The insurance sector has suffered losses of about Rs 1,500 crore. We may not get re-insurance for these policies as we had not taken re-insurance for these small individual polices," said a senior manager with the National Insurance Company.

Re-insurance is done only for the big policies taken by various industrial groups.
Click to expand...

if the insurance companies aren't prepared to dish out the cash when its needed, what use is having an insurance anyway. Talk of US,, you have the tornado strikes all the time but people get back what they lose.. here our comapnies just find a way to somehow make life tougher for the people :no:
 
Next they will drop fire, explosion. everything.... they will insure your house only in case of the sky falling on it....

Bloody cheats, thieves, and all other expletives(whjich if I type here will make me susceptible to a ban)
 
what about the private playesrs though... ICICI or new york max life and all..
dunno if they gave flood insurance but are they planning clear up their dues? anyone claimed anything till now?
 
the worst part is that most of the people have not lost their whole house or property... what they have lost is their belongings like PCs, TVs, fridges, washing machines, etc.....

and most of these things are not insured.... Usually onlt the house(that is the building) is insured.... This is the worst...

I mean, see Funky's case... he lost 2 PCs. But had he insured them?? I don't think so.... Most people would not have insured them.... and they will not get any money for that....

Everyone as of now is talking abt the slum people and lot of aid is being promised to them(I say promised..... not being given... that remains to be seen). But very few seem to be thinking abt the middle class... those who had bought TVs, DVD players, comps, fridges, etc on monthly installments and have struggled to build a life...

Now, they are back to zero.... With no money with them(if their house is still intact)....
 
frankly i don't think the idea of getting things insured has took off in India.. atleast among the middle class.. can't blame them really..if you see the attitude of the insurance comapnies here in India and the kind of roadblocks they will put up for a claim. Hardly anyone would want to insure.
 
i saw cnbc aawaz.......irda refused they r doing such thing...but i guess within 3 yrs it will happen........also ppl will stop leaving on ground floor now onwards
 
its very bad indeed...ppl expect life insurance companies to help them in time of need and now these insurance cos. are making rules on wish. how convenient :bleh:
 
I think u guys are confused. This all applies in the future, that is, on new policies. Existing ones still get the cover. As for PCs etc, well that is up to you to insure them. BTW you do get comprehensive policies which include them.
I think it is fair enough to drop whateverthey want, only it should be clearly stated, and people should be given a chance to pay a fair amount to insure against floods too. Eg, If I lived in Rajasthan I might not care about floods.
As for class wars, well no money is going to the slum dwellers. The stupid part is now that the slums have been naturally demolished, instead of rehabilitating the slum dwellers in a proper location, most likely they will be setup in the same old encroachment which was in danger of being flooded the first time!
 
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