General Insurance Corporation expecting $20-million in damage claims from Dubai flooding

MUMBAI: It is hard to conceive of losses from floods
in a desert. But that is what the country's designated
national reinsurer General Insurance Corporation is
facing now — a claim for $20-million due to the floods
in Dubai after a long time.

"We expect to see claims worth $20 million in Dubai
mainly from damage to property," said Alice Vaidyan,
chairman and managing director, GIC Re., the
reinsurer. "For the last three years we have been
getting huge claims due to natural catastrophe." This is
the biggest claim related to floods since 2007, when
Cyclone Gonu hit the Middle East.

The reinsurer, which earns half its premium by
underwriting international treaties, will review its policy
to bring down losses. GIC Re's is expected to touch Rs
16,000 crore in premium income by the end of the
current financial year.

"We are reviewing our way of underwriting protection
compared to other reinsurance companies," said Girija
Subramaniam, Deputy General Manager, GIC Re.

Indian insurance companies have seen claims due to
floods in Jammu and Kashmir, Cyclone Hudhud followed
by Chennai floods. In the current financial year, the
industry had paid Rs 5,000 crore claims due to
Chennai floods. Of this, GIC Re had seen hit of Rs
1,500 crore as part of the reinsurance programme.


GIC Re had posted profit of Rs 2,693 crore in
2014-15. Its gross global premium was Rs 15,183 crore
and 47% of it had come from international operations.