Kashmir floods cause huge losses
Published 2 September 2014
The State of Jammu and Kashmir in India, and parts of Pakistan, have recently experienced their worst floods in over 50 years. Besides the tragic loss of life with over 200 dead and some 250,000 displaced (the numbers are expected to rise), the entire public infrastructure of the State stands crippled.
The Secretary to the State Government’s Revenue, Relief and Rehabilitation Department has reportedly made a conservative estimate of the losses at around US$1bn. Insurers are unable to get a sense of their exposure to the losses as yet.
Meanwhile, the Indian insurance regulator, the Insurance Regulatory and Development Authority, has directed each life insurer to take steps towards expeditious settlements by setting up and publicising a dedicated toll free number and a local contact address, and nominating a senior official to coordinate the claims. As for non-life insurers, while in India it is compulsory for losses over approximately US$325 to be surveyed by a licensed loss adjustor before insurers can settle, this limit has been raised to approximately US$820 for the next two months to facilitate quicker settlements of smaller claims.
DAC Beachcroft has a joint venture arrangement with KS Partners.