Lok Sabha Question No. 5065 (UNSTARRED), answered on 2022-04-04
Subject: Settlement of Insurance Claims
Ministry: FINANCE
Asked by: A. Ganeshamurthi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 5065

ANSWERED ON - 4.4.2022

## SETTLEMENT OF INSURANCE CLAIMS

5065. SHRI A. GANESHAMURTHI:

Will the Minister of FINANCE be pleased to state:

- (a) the  details  of  outstanding  claims  for  natural  disasters  in  2020  and  2021  from  the insurance companies, State/year-wise.
- (b) the  amount  that  was  settled  and  its  percentage  out  of  the  total  claims  for  natural disasters;
- (c) whether the Insurance Regulatory and Development Authority issues instructions to the insurers to expedite the process for receiving, verifying and settling claims; and (d) if so, the details thereof?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR. BHAGWAT KARAD)

(a) and (b): Insurance Regulatory and Development Authority (IRDAI) has informed that no claim is outstanding with the Life Insurance Companies for natural disasters in the years 2020 and 2021. The catastrophe and State-wise details of claims for natural disasters in the years  2020  and  2021  from  the  life  insurance  and  non-life  insurance  companies,  are  at Annex-I and Annex-II respectively.

(c) and (d): Yes, Insurance Regulatory and Development Authority of India issues guidelines for life insurer & non-life Insurer from time to time to expedite the processes for receiving, verifying  and  settling  claims  pertaining  to  natural  catastrophes.  This  includes  guidelines issued to insurers in respect of insurance claims of victims of Cyclones Amphan, HudHud, Fani  Nivar,  Nisarga,  Taukate  and  Yaas,  floods  in  Telangana,  Andhra  Pradesh  and Maharashtra etc.

*****

## Annex-I

## Lok Sabha Unstarred Question No. 5065 regarding "Settlement of Insurance Claims" Life insurers' settlement of claims arising out of catastrophe events  during the year 2020  and 2021 as on 28.02.2022

| S. No   | Year       | Natural Disaster Cyclone/Flood                                      | Outstanding Claims   |   No. of Claim Reported |   Amount (in Lakhs Rupees) | Percentage Claim Settled   |
|---------|------------|---------------------------------------------------------------------|----------------------|-------------------------|----------------------------|----------------------------|
| 1       | May, 2020  | Cyclone Amphan ( West Bengal, Odisha)                               | Nil                  |                       0 |                       0    | NA                         |
| 2       | June, 2020 | Cyclone Nisarga (Maharashtra , Gujarat)                             | Nil                  |                       0 |                       0    | NA                         |
| 3       | June, 2020 | Heavy Rainfall in Andhra Pradesh, Telangana, Maharashtra, Karnataka | Nil                  |                       2 |                      21    | 100%                       |
| 4       | Nov, 2020  | Nivar (Tamil Nadu, Andhra Pradesh)                                  | Nil                  |                       0 |                       0    | NA                         |
| 5       | May, 2021  | Cyclone Tauktae (Maharashtra, Gujarat, Karnataka,Kerala & Goa)      | Nil                  |                       4 |                     185    | 100%                       |
| 6       | May, 2021  | Cyclone Yaas (West Bengal, Odisha)                                  | Nil                  |                       0 |                       0    | NA                         |
| 7       | July, 2021 | Maharashtra floods                                                  | Nil                  |                       4 |                       5.94 | 100%                       |
| Total   | Total      | Total                                                               |                      |                      10 |                     211.94 | -                          |

Source:IRDAI

| Year              | Non-Life Catastrophe name (event wise)                         | insurers' settlement Claims Reported   | insurers' settlement Claims Reported   | Claims Settled   | Claims Settled       | Claims Repudiated   | Claims Repudiated    | Claims Withdrawn Claims Outstanding   | Claims Withdrawn Claims Outstanding   | Claims Withdrawn Claims Outstanding   | Claims Withdrawn Claims Outstanding   | % of claims outstanding   | %of claims disposed of   |
|-------------------|----------------------------------------------------------------|----------------------------------------|----------------------------------------|------------------|----------------------|---------------------|----------------------|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------|--------------------------|
| Year              | Non-Life Catastrophe name (event wise)                         | Number                                 | Amount (In Rs Lakhs)                   | Number           | Amount (In Rs Lakhs) | Number              | Amount (In Rs Lakhs) | Number                                | Amount (In Rs Lakhs)                  | Number                                | Amount (In Rs Lakhs)                  | % of claims outstanding   | %of claims disposed of   |
| May, 2020         | Cyclone Amphan (West Bengal, Odisha)                           | 14803                                  | 174896.02                              | 11930            | 57198.63             | 755                 | 4105.35              | 662                                   | 2229.17                               | 1448                                  | 114055.93                             | 9.78                      | 90.16                    |
| June, 2020        | Cyclone Nisarga (Maharashtra, Gujarat)                         | 7755                                   | 27911.92                               | 6574             | 11728.15             | 583                 | 1194.30              | 180                                   | 354.37                                | 416                                   | 14591.77                              | 5.36                      | 94.61                    |
| October, 2020     | Telangana floods                                               | 7315                                   | 39371.71                               | 5737             | 16362.97             | 215                 | 673.53               | 688                                   | 650.43                                | 673                                   | 20245.15                              | 9.20                      | 90.77                    |
| October, 2020     | Andhra Pradesh floods                                          | 447                                    | 1207.11                                | 344              | 794.59               | 13                  | 8.41                 | 52                                    | 17.97                                 | 38                                    | 380.21                                | 8.50                      | 91.50                    |
| October, 2020     | Maharashtra floods                                             | 1008                                   | 3901.16                                | 824              | 1816.43              | 28                  | 16.82                | 105                                   | 53.24                                 | 51                                    | 2014.67                               | 5.06                      | 94.94                    |
| October, 2020     | Karnataka floods                                               | 2407                                   | 1081.25                                | 2396             | 768.07               | 1                   | 0.27                 | 3                                     | 30.25                                 | 9                                     | 282.66                                | 0.37                      | 99.71                    |
| November, 2020    | Nivar (Tamil Nadu, Andhra Pradesh)                             | 1138                                   | 13055.93                               | 660              | 3172.92              | 92                  | 124.80               | 78                                    | 74.62                                 | 360                                   | 8939.52                               | 31.63                     | 72.93                    |
| Total (year 2020) | Total (year 2020)                                              | 34873                                  | 261425.11                              | 28465            | 91841.77             | 1687                | 6123.48              | 1768                                  | 3410.04                               | 2995                                  | 160509.91                             | 8.59                      | 91.53                    |
| May,2021          | Cyclone Tauktae (Maharashtra, Gujarat, Karnataka,Kerala & Goa) | 14362                                  | 264101.35                              | 9604             | 29451.24             | 939                 | 2769.04              | 851                                   | 2089.17                               | 2968                                  | 231611.44                             | 20.67                     | 79.33                    |
| May,2021          | Cyclone Yaas (West Bengal, Odisha)                             | 7393                                   | 18280.89                               | 5530             | 2691.72              | 86                  | 120.25               | 1291                                  | 143.82                                | 486                                   | 15204.67                              | 6.57                      | 93.43                    |
| July,2021         | Maharashtra floods                                             | 14579                                  | 111617.48                              | 9826             | 27253.01             | 794                 | 2977.35              | 894                                   | 9986.68                               | 3065                                  | 74162.82                              | 21.02                     | 78.98                    |
| Total (year 2021) | Total (year 2021)                                              | 36334                                  | 393999.72                              | 24960            | 59395.97             | 1819                | 5866.64              | 3036                                  | 12219.67                              | 6519                                  | 320978.92                             | 17.94                     | 82.06                    |
| Grand total       | Grand total                                                    | 71207                                  | 655424.8                               | 53425            | 151237.7             | 3506                | 11990.1149           | 4804                                  | 15629.7                               | 9514                                  | 481488.83                             | 13.36                     | 86.70                    |