Date:19/08/2005 URL: http://www.thehindubusinessline.com/2005/08/19/stories/2005081902380600.htm

Back IFFCO-Tokio puts Mumbai flood losses at Rs 137 cr

Our Bureau

Mumbai , Aug. 18

IFFCO-Tokio (ITGI), a joint venture between Indian Farmers Fertilisers Cooperative Ltd and The Tokio Marine and Fire Insurance, has suffered losses worth Rs 137 crore in the recent Mumbai floods.

Mr Ajit Narain, Managing Director and Chief Executive Officer, IFFCO-Tokio, said the company received 1,017 claims in Mumbai. Of these, 560 were motor claims while 457 were claims from the industry, marine, shops and offices, he said.

"As far as motor insurance claims are concerned, ITGI has settled claims worth approximately Rs 3.5-4 crore and the company is abiding by the guidelines set by the manufacturers. The surveyors and the teams have been given a clear mandate by the company to settle claims as per the rates agreed by the manufacturers," said Mr Narain.

ITGI will settle 40 per cent of its claims by the end of the month and 100 per cent by September 2005.

ITGI derives 50 per cent of its business from fire insurance while the other 50 per cent of the pie is divided between motor, health, shopkeepers and householders' insurance.

In the recent floods in Gujarat, the company had 400 claims and estimated losses worth Rs 22 crore.

Mr Narain said that ITGI had the complete support of reinsurers such as Munich Re and Swiss Re.

ITGI reported premium income of Rs 507.39 crore in 2004-05 and garnered 2.80 per cent of the market share.

The company has covered 16,020 farmers in eight States under the Barish Bima Yojana, an insurance cover against deficit rainfall.

It also provides personal accident covers on the purchase of fertilisers where the upper limit of the sum assured is fixed at Rs 1,00,000.