Cyclone Phailin: Insurance industry not hit hard

India Infoline News Service | Mumbai |

According to insurers, there is a huge amount of underinsurance in the areas hit. However, there was not a huge impact on industrial areas or risks

Though there is significant flooding following cyclonic storm Phailin in Odisha, the insurance industry is not expected to be hit hard, according to a media report.

Phailin hit the Andaman and Nicobar islands between 12:30-1:30PM on Wednesday and turned into a "very severe cyclonic storm" and hit northern Andhra Pradesh and coastal Odisha around Saturday.

According to insurers, there is a huge amount of underinsurance in the areas hit. However, there was not a huge impact on industrial areas or risks. But, claims are still coming in as the damage is being assessed, the report added.

Around 25 people lost their lives as a result of Phailin after a huge evacuation operation took place. According to sector officials, the highest destruction is on “kuchcha houses” (huts) and public property. Hence, the number of claims is expected to be limited and early estimates, put there at well under Rs. 1 billion.

Cyclone Phailin originated over east central Bay of Bengal and has since intensified moving north-westwards, 800 km southeast of Paradip (Odisha) and 870 km east-southeast of Visakhapatnam (Andhra Pradesh). Phailin means sapphire in the Thai language.

According to a London-based storm tracking service - Tropical Storm Risk - Phailin is a Category 4 cyclone, which usually is very destructive with winds of 225-279 kph. This is below the most powerful Category 5 super storm that hit Odisha in 1999 killing an estimated 10,000 people.


 

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