Nepal quake: GIC Re stares at Rs 1,000 cr claim payouts

Nepal quake: GIC Re stares at Rs 1,000 cr claim payouts

FPJ BureauUpdated: Saturday, June 01, 2019, 02:10 AM IST
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Mumbai : GIC Re, which is the largest re-insurer in Nepal, said the company is expecting to pay a whopping Rs 1,000-crore claim against the damages caused by this natural disaster in the the earthquake-ravaged nation.

“My company, which is the largest reinsurer in Nepal, is preparing itself to pay around USD 160 million (Rs 1,000 crore) of claim out of the devastation caused by 7.9 earthquake that shook the densely-populated Kathmandu valley and the rest of the Himalayan kingdom,” GIC Re chairman and managing director A K Roy told PTI.

He further warned, “Rs 1,000 crore is the maximum that we should be paying in the worst scenario. We have done reinsurance business with 13 Nepalese non-life companies. We are expecting claims from segments like power plants, housing complexes, commercial buildings and hotels. The claims may lead to higher reinsurance premium in the region.”

GIC Re also hinted that it may increase its reinsurance premium in Nepal in the future. “As of now, we don’t know the quantum of our loss in Nepal. The only thing that I can say at the moment is in case our loss goes higher, then it will definitely result in increasing the premium amount for providing reinsurance cover in that country,” he said.

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