Kerala floods: Will not charge any interest on late premium payment, says LIC chairman VK Sharma
New Delhi: In view of the crisis in Kerala, the chairman of Life Insurance Company of India (LIC) VK Sharma told ET Now that the organisation is taking numerous steps to assist people in the flood-hit southern state.
He said that LIC will not be charging interest on delay in payment of premium for Kerala people apart from creating a special cell, where officials will assist in clearing insurance claims from the southern state on top priority.
“We have created cells at separate places to settle the claims as quickly as possible. We have waived all key charges. We estimate life insurance claims around 200. The property damage is very extensive in the state,” Sharma said.
Other than that, Sharma declared that LIC is waving all requirements for settling claims due to Kerala floods. However, the special provisions that have been arranged by LIC in Kerala would cost the insurance industry more than Rs 500 crore.
“This is a crisis, in fact, a national crisis reason being the level of damage of property and life it has been unprecedented there. My own assessment is that insurance industry will be losing not less than 500 crores,” he said.
Saying that the corporation’s Kerala business covers roughly about 6% to 8% of the total business, he said that LIC is making all efforts to help people in a way that their risk will be covered if the premium is delayed.
“We are trying to help people in a way that their risk will be covered even if the premium is delayed so we will not charge an interest on late premium payment,” he said.
“We have already issued the instructions in case some information of death is coming either for life insurance policies or pradhan mantri jeevan jyoti beema yojna PMJDY. We will be settling the claim on top priority,” Sharma added.
It may be noted that Kerala, over the past few days, was hit by one of the worst rain-related disasters since 1924 and has led to the death of at least 370 people. While rescue operations are coming to an end with the skies clearing up, the challenge for the state is far from over.
In light of the tragic event, the move by the largest insurance company in India would provide much-needed relief to the people who have been battling for their lives in the flood-ravaged state.