According to sources, insurance companies will be factoring in calamities and flooding for big metros which are rapidly growing and hence the increase in premiums.

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If you own car in Mumbai, Chennai, Kolkata or New Delhi, you will have to fork out 15% higher insurance premiums as compared to other cities in India. This is because insurance companies will be factoring in higher risks of insurance in these cities post the Chennai floods which gave rise to claims worth INR 1, 500 crore.

According to insurance industry experts, even rainwater entering the basement can lead to big claims. Other aspects like the fuel type and geography will also be considered while determining automobile insurance policy prices in these cities. The record claims in Chennai have been considerably more than those garnered due to the 2006 Mumbai floods. The claim severity is always higher in metros and hence the increase in premium according to several company executives. Flood related policy rates could also be tweaked for property and automobiles owing to 10% increases in losses for companies.

Several insurance companies have shelled out INR 30-50 crore worth of insurance claims and help-lines have also been setup for customer convenience. Claim payments are being expedited while they are also helping in towing cars to their nearest service stations or workshops. The IRDA has asked companies to settle claims within a specified time period in addition to publicizing office details. The regulator has also asked for special claim redressal camps through state government and media channels for faster claim filing.

The Chennai floods should give rise to claims worth INR 3, 000 crore eventually according to sources which is way higher than the INR 1, 500 crore of claims during the Uttarakhand floods or even in Jammu and Kashmir.

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