Friday, October 09, 2009

How much will it cost insurance companies?

Now it is time to file claims....from Ondoy and Pepeng damages. How much it will cost our insurance companies?

Insurance companies face at least P11 billion in property claims alone from the devastation brought about by Tropical Storm “Ondoy,” according to the Philippine Insurers and Reinsurers Association (Pira).

The amount, which does not include life insurance claims, was an “ultraconservative” estimate, said Michael F. Rellosa, vice chair of Pira, the country’s non-life insurance industry association.

The estimate is enormous because the areas most affected by the devastating floods were industrial and commercial rather than agricultural or residential, he said.

“Marikina, Pasig and Cainta [host] many factories that have millions of pesos worth of machinery and equipment. The warehouses were full of stock for the Christmas season,” he said.

The commercial establishments sustained heavy losses in lost inventories, he added.

Claims from water-logged vehicles with “acts of God” coverage could reach P1 billion, said Rellosa, who is also president of Fortune General Insurance Corp.

“Three Pira members that offer motor vehicle insurance with [acts of God coverage] said claims from their clients could reach roughly P300 million,” he said.

There you have it.

Are you properly covered?