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Sunday, July 3, 2011

Japan earthquake and nuclear catastrophe leaves a Rs 400 crore hole in GIC books

The General Insurance Corporation of India (GIC), the designated national reinsurer, has seen a claim of Rs 400 crore from the catastrophe in Japan. Japan was hit by an earthquake on March 11 this year. This was followed by tsunami and fire outbreak that lasted for close to a week. The entire catastrophe has taken the total economic loss to the extent of $409 billion. "We have seen a loss to the extent of Rs 400 crore from the crisis in Japan," said GIC chairman and managing director Yogesh Lohiya. He said the total economic loss was estimated at around $409 billion.
The insured loss, however, is estimated to be around $40 billion, he added. GIC had mainly reinsured the property risks for catastrophic events. Mr Lohiya said that the entire loss to commercial properties is borne by insurance companies against 80% of the damage to the residential properties absorbed by the government in Japan, while the remaining 20% is with insurance companies. The recent catastrophic events such as floods in Australia, quakes in New Zealand and tsunami in Japan had led to reinsurers to raise rates.

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