Page 6 - Insurance Times February 2022
P. 6

The appointments come after the    only 2.84 per cent of the amount   rate groups of experts to suggest suit-
         Delhi HC said in an order that the  claimed due to cyclones Tauktae and  able working models with cost benefit
         Banks Board Bureau could not appoint  Yaas in the quarter to June 2021. As on  analysis that will lower crop insurance
         insurance directors. The court order  June 30, 2021, claim amounting to Rs  premium and technology in crop yield
         had also set aside the appointment of  1,351 crore were reported by 18,194  estimation under the flagship Pradhan
         at least six directors. The court said  claimants due to cyclones Tauktae and  Mantri Fasal Bima Yojana (PMFBY). This
                                            Yaas and of this, claims totaling Rs 38.40  follows the exit of several States in-
         that the appointments were contrary
         to the amendments in the General In-  crore were settled to 6,671 claimants.  cluding Gujarat, Andhra Pradesh,
                                            "Disposal of pending claims at various  Telangana, Bihar and West Bengal
         surance Business Nationalization Act.
                                            stages is being monitored by the Au-  from the scheme, citing high premium.
         "Consequently, The impugned selec-  thority regularly," the regulator said.
         tions could not have been undertaken                                  A ten-member committee under scien-
         by the BBB", said the HC, which di-  In 2021, cyclones Tauktae and Yaas  tist K R Manjunath of Indian Space
                                            caused losses to property in some parts  Research Organisation (ISRO) will ex-
         rected the government to make ap-
                                            of the country. The year 2020 saw the  plore the feasibility of adoption of vari-
         pointments according to law.
                                            occurrence of several natural cata-  ous technology-based approaches de-
         Only one third of Claims           strophic events in various parts.  veloped through pilot projects by ISRO
                                            While in May 2020, cyclone Amphan cre-  and its arm National Remote Sensing
         from Amphan Cyclone                ated havoc West Bengal and Odisha,  Centre (NRSC) as well as Mahalanobis
         settled                            cyclone Nisarga had a similar impact in  National Crop Forecast Centre
                                            Maharashtra, Gujarat and other neigh-  (MNCFC) of the Union Agriculture Min-
         Insurance companies settled 29.72 per
                                            boring states in June 2020. There were
         cent of the amount claimed by people                                  istry, the official said.
         and entities affected by cyclones and  floods in the states of Telangana, Andhra  According to NRSC, satellite data at
         floods in 2020-21, even as the number  Pradesh, Karnataka and Maharashtra in  regular temporal interval enables moni-
                                            October 2020. In November 2020, cy-
         of claims declined during the year.                                   toring of the natural resources for their
                                            clone Nivar caused loss to property in
         While insurers got 34,304 claims for Rs  some parts of the country.   effective management. However, the
         2,559 crore in cyclones and floods in                                 government has also been considering
                                            "The Authority issues guidance to the in-
         2020-21, they settled 27,576 claims for                               to utilise drones to capture yield data
         Rs 760.68 crore. As many as 3,428  dustry during catastrophes, keeping the  as satellite images are also considered
                                            interests of policyholders affected, in
         claims for Rs 1,705 crore are still pend-                             not effective in case of fog or cloud.
         ing before insurers, according to the  view," IRDAI said. According to the insur-
                                            ance watchdog, in respect of the major-  The other sub-committee, headed by
         Annual Report of the IRDAI.
                                            ity of the cases, claims are outstanding due  Saurabh Mishra, joint secretary in Min-
         In the previous year, insurers received  to reinstatement of property not having  istry of Finance, will conduct cost ben-
         1,40,804 claims for Rs 3,399.61 crore  taken place. It further said, "There are  efit analysis of all "accepted models -
         due to cyclones and floods with cyclone  also some instances of the required docu-  agriculture insurance pool, cup and cap
         Fani reporting maximum claims of Rs  ments not having been submitted by the  80-110 per cent and co-insurance 20-
         1,190.59 crore. In 2020-21, the maxi-  insured due to lockdown. However, on  80 per cent" as well as any profit-loss
         mum number of claims at 14,575 were  account payments have been made in  sharing model.
         from damages caused by cyclone     several instances."
         Amphan. Insurers settled 11,512    During 2021-22 too, IRDAI issued guid- Coonoor crash: Insurers
         claims for Rs 470.94 crore, while 1,693  ance to insurers to attend to the
         claims for Rs 1,235.77 crore are yet to                               settle claims in 'shortest
                                            claims arising out of the above events
         be cleared.                        promptly, it said.                 possible time'
         After the Telangana floods last year,                                 PSU general insurers, including New
         7,041 claims for Rs 329.83 crore were  Centre sets up two panels      India Assurance (NIA) and United India
         reported but insurers settled only                                    Insurance (UII), rushed to settle the
         5,510 claims for Rs 151.30 crore,  to lower crop insurance            personal accident (PA) claims of all
         IRDAI said.                        premium                            military personnel, including the first
         Further, insurance companies settled  The Centre has appointed two sepa-  Chief of Defence Staff (CDS) General

           6  The Insurance Times, February 2022
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