BUSINESS

Blasts: Non-life insurers may lose Rs 20 cr

Source:PTI
July 13, 2006 14:59 IST

Mumbai's serial blasts may cost four public sector general insurance companies about Rs 15-20 crore (Rs 150 to 200 million) as the Railways has taken personal accident cover from a consortium consisting of Oriental Insurance, New India, United India and National Insurance.

"The Railway Tribunal will pay Rs 4 lakh to the families of the dead and Rs 1 lakh to the injured, which will be later reimbursed to the Railways by the four PSU general insurers," M Ramadoss, chairman, Delhi-based Oriental Insurance Company  told PTI.

According to official estimates over 200 have died and another 750 injured in the July 11 serial blasts in Mumbai's local trains.   

All the four general insurance companies have together insured Railways for personal accident claims and would share the burden equally, Ramadoss said.

However, the total claim due the blast will be much higher as many who died have taken life insurance cover.

Country's largest insurer Life Insurance Corporation and top private player ICICI Prudential have already announced easing of norms for faster claim settlement.

The recent floods in Mumbai during the first week of July had cost about Rs 1-2 crore (Rs 10 to 20 million) to the general insurance companies.

Insurance companies may face high claims

Source: PTI
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