Flood insurance claims to surpass Rs.7b mark
25% of claims already settled:
Insurance companies have already settled over 25% of the claims made
by the flood-affected people across the country, a top official of the
The industry expects the value of the claims to surpass the initial
estimate of Rs. 7 billion as the number of claims is expected to go up
when people fully settle down over the next few weeks.
Finance Minister Ravi Karunanayake said post-flooding reconstruction
costs would be between Rs.150 and 250 billion.
President, Insurance Association of Sri Lanka, Dirk Pereira said
companies have settled over 25 percent of the claims and added that
larger claims will need more time as they needed to be assessed by
overseas or local professional loss adjusters.
He said settlements of vehicle claims are rather easy as they are
With regard to the large claims, he said there is no issue of
settling claims as insurance companies are backed by reinsurance. “The
negative impact of the recent floods is much greater than the tsunami in
2004,” Perera said.The insurance industry hailed the setting up of the
insurance trust fund in line with the concept of having retrocession in
insurance. Reinsurance is a type of insurance wherein part of the risk
taken by an insurance company is taken on by another insurance company.
Chief Operating Officer, Janashakthi General Insurance Ltd, Dayalanie
Abeygunawardena said the company had already settled 60% of the claims
and added that over 25% of the claims was settled on the day intimations
“Of the 2,250 claims, 1,800 are motor and the rest are non-motor
claims. Advance payments have been made to around 50% of the remaining
claims,” Abeygunawardena said.
With regard to property claims, she said loss adjusters have to
assess the losses. Three-wheelers, motor bicycles and cars account for a
major component of the claims in the motor sector.
HNB Assurance and HNB General Insurance, CEO Deepthi Lokuarachchi
said other than damages at construction sites, factories and warehouses,
other claims were settled immediately on agreeing upon the damage
estimates. Assessment of loss to factories, warehouses and construction
sites are complex as it takes time to figure out the extent of damage.
“We have given them the flexibility to invite experts and carry out
proper estimates without rushing so that they get the real value in
claims,” he said.
Director and CEO, Asian Alliance Insurance, Ramal Jasinghe said
around a 25% of the claims have been settled and added that more
settlements would be made as soon as the estimates are available on
damage to vehicles. “Motor vehicle claims are so far around 200 while
non-motor claims are 31. All claims will be settled without a delay once
the total estimate has been done,” he said. Chairman, Sri Lanka
Insurance, Hemaka Amarasuriya said the total value of claims is around
Rs. 1,750 million with non-motor claims accounting for Rs. 1 billion and
motor Rs. 750 million. “We hope to settle over 75% of the claims this
week and complete all settlements within a month,” he said. Ceylinco
Insurance sources said all claims were settled on June 3 and new claims
will be settled within seven days. Insurance industry experts said the
need to obtain an insurance policy will be high following the recent
destruction to life and property.