Chennai Floods: MSMEs not happy with the insurance cos
Updated: Dec 23, 2015 04:55:28pm
Chennai, Dec 23 (KNN) The micro, small and medium enterprises in the flood-hit regions of Tamil Nadu, have not only been hit by the heavy rains but also by the “slow” estimation process of the insurance companies and also some of their complicated policies.
C K Mohan, Vice –President of Tamil Nadu Small and Tiny Industries Association (TANSTIA) told KNN about various issues being faced by the MSMEs in the flood-hit region in the state.
Recently occurred floods in Tamil Nadu left the state in highly horrendous state affecting more than 14000 MSMEs.
The calamity left the small industry in a completely destroyed and dysfunctional state disrupting the entire capital and submerging all the essential documents of the companies.
The insurance companies, Mohan said, generally takes too long to reach at a proper estimate of the total amount to be repaid to the firms as per the insurance policy.
“The first and foremost problem with the insurance companies is that there is a huge delay in the estimation for the total insured amount to be repaid,” he said.
He further said, “In cases of such calamities only small fraction of the total devastated amount is offered to the industries by the insurance companies. Say, estimation of Rs 10 lakh is offered for the total devastation of Rs 1 crore. This is the Real picture”.
From further discussion, it was inferred that the only a certain fraction of the company’s total capital is insured. The insurance companies are reluctant to take under the total insured fraction, the working capitals.
“The insurance companies only insure the stocks held by the firm and not the entire working capital. Thus, freeing themselves from the responsibility of bearing the loss due to destruction of the entire working capitals,” Mohan asserted.
Mohan concluded by saying that the insurance companies are not doing the insurance properly and are not taking the floods into consideration for the same. The industry is at a huge loss for that.
Meanwhile, the Secretary General of Madras Chamber of Commerce and Industry of India, K Saraswathi said that they are still in the process of evaluating the loss incurred due to the floods.
“We can’t give a concrete figure as to what extent the devastated fraction of property has been insured, but we in process of assessing the loss,” Saraswathi said.
She also asserted that they have approached many insurance companies, further stating that till now, the insurance companies are being very supportive and sympathetic towards the plight of MSME sector in Tamil Nadu. (KNN/ J)
C K Mohan, Vice –President of Tamil Nadu Small and Tiny Industries Association (TANSTIA) told KNN about various issues being faced by the MSMEs in the flood-hit region in the state.
Recently occurred floods in Tamil Nadu left the state in highly horrendous state affecting more than 14000 MSMEs.
The calamity left the small industry in a completely destroyed and dysfunctional state disrupting the entire capital and submerging all the essential documents of the companies.
The insurance companies, Mohan said, generally takes too long to reach at a proper estimate of the total amount to be repaid to the firms as per the insurance policy.
“The first and foremost problem with the insurance companies is that there is a huge delay in the estimation for the total insured amount to be repaid,” he said.
He further said, “In cases of such calamities only small fraction of the total devastated amount is offered to the industries by the insurance companies. Say, estimation of Rs 10 lakh is offered for the total devastation of Rs 1 crore. This is the Real picture”.
From further discussion, it was inferred that the only a certain fraction of the company’s total capital is insured. The insurance companies are reluctant to take under the total insured fraction, the working capitals.
“The insurance companies only insure the stocks held by the firm and not the entire working capital. Thus, freeing themselves from the responsibility of bearing the loss due to destruction of the entire working capitals,” Mohan asserted.
Mohan concluded by saying that the insurance companies are not doing the insurance properly and are not taking the floods into consideration for the same. The industry is at a huge loss for that.
Meanwhile, the Secretary General of Madras Chamber of Commerce and Industry of India, K Saraswathi said that they are still in the process of evaluating the loss incurred due to the floods.
“We can’t give a concrete figure as to what extent the devastated fraction of property has been insured, but we in process of assessing the loss,” Saraswathi said.
She also asserted that they have approached many insurance companies, further stating that till now, the insurance companies are being very supportive and sympathetic towards the plight of MSME sector in Tamil Nadu. (KNN/ J)
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