Visakhapatnam: Two months after the Hudhud havoc, 90 per cent of all insurance claims of around 6,000 have been settled. Around 600 cases are pending which are likely to be settled this month. Around 5,300 claims worth 375 crore have been paid in two months, said Rs member of insurance panel appointed by state government, O. Naresh Kumar.
“Most of the settlements paid are about 30 per cent to 50 per cent of claimed amounts. This is due to poor understanding of insurance laws and policy. Only a few people have taken replacement cost policy. In this entire replacement cost is paid. We request all to take this policy from now. Currently only less than 5 per cent have taken this policy. In normal policy people lose lot of money. The difference between claim amount and settled amount is about 50 per cent on average for genuine claims,” he said.
Another member of the Panel and CII Vizag chapter past chairman, G. Sambasiva Rao, said that there was a need to create awareness among businessmen regarding insurance issues. “CII would very soon organise a workshop to create awareness among these insurance issues,” he said.
He observed that many insure only once a year but there are many additions during the year to building or machinery, which are not updated in insurance policy regularly.
“It is better to upgrade policy whenever new addition is made to building or machine type insurance under each head must be made for full value separately at the time of taking policy. Usually people combine when paying premium without going into detailed break up. This leads to huge loss. If these factors are taken into account people will be safeguarded,” Mr Rao added.
