Reinsurance will protect United India Insurance Company Ltd. despite expecting around Rs.1,100 crore in claims over losses following Andhra Pradesh's cyclone and Kashmir floods, a top company official said Monday.Chairman-cum-managing director Milind Kharat told reporters: "We have received cyclone damage claims in Andhra Pradesh for around Rs.440 crore and it is likely to go up to around Rs.800 crore. In the case of Jammu and Kashmir, the flood damage claims are around Rs.300 crore."He said: "We do not expect any impact on our profits as we will be claiming the claim amount from our reinsurer."
According to him, the company is insured against catastrophic losses with reinsurers. Only claims up to Rs.25 crore will have to be borne by United India and anything over and above that will be passed on to the reinsurers.Cyclone 'Hudhud' recently battered Andhra Pradesh while Jammu and Kashmir was hit by floods.
General manager T.L. Alamelu said: "We are making part payments-on-account payments to claimants as an immediate measure in Jammu and Kashmir and Andhra Pradesh."According to her, the company has paid around Rs.1.5 crore to one of the oldest hotels in Jammu and Kashmir, Hotel Broadway, as part settlement of its claim.
Kharat said: "...the insurance claims from Jammu and Kashmir floods will be around Rs.1,500 crore and United India's share in that will be around Rs.300 crore. We have paid claims of around Rs.102 crore. In Andhra Pradesh, the claims are from steel and power plants under construction."General manager and financial advisor V.E. Kamala said United India closed the first half of this fiscal with a net profit of Rs.376.24 crore and a total premium of Rs.5,291 crore. For the corresponding period of the previous year, it had posted a net profit of Rs.364.54 crore and a total premium of Rs.4,768 crore.
He said the company has logged 11 percent growth in the first half while the industry's average growth was at eight percent.According to Kharat, the company will expand its network by opening 200 offices and recruit around 900 employees (around 300 officers and 600 clerks). He said the company will introduce innovative covers in the motor health insurance segments and also launch a package policy for small and medium enterprises.