GIC Re expects claims worth $50 million from Nepal earthquake

MUMBAI: The country designated national reinsurer- General Insurance Corporation of India is expects claims worth $50 million (around Rs 320 crore) from the Nepal earthquake.

GIC Re is the largest reinsurance partner of the Nepalese insurance industry. The company’s gross exposure in the Nepalese insurance market is around $140 million. The company had sent a team of 10 surveyors to assess the loss. However, it is yet to arrive at any estimate of losses due to the recent earthquake there.

“So far we have not received any cash-calls from any of our cedents. Much will depend on the damages suffered by the insured properties,” said GIC Re in a release today. “We reiterate our commitment to accord top priority to all claims arising out of this tragic event,”

A massive earthquake measured at 7.9 on the Richter scale rocked Nepal on April 25Saturday, followed by another one measuring 6.7 on the following day, impacting some parts of India as well. The worst earthquake to hit the region in 80 years brought down several buildings and centuries old temples. The claims are arising out of damage to commercial and industrial properties.

“Our past experience with such calamities in this part of the globe indicates insured losses to be a very small part of the economic losses. It will take some time for an actual picture to emerge. However, we expect the claims to remain with in USD 50 million in worst case scenario,” said GIC.