BANGALORE: Recently the insurers were busy collecting data from the cyclone-hit areas of Andhra Pradesh and Odisha as they brace for claim settlement, barely weeks after carrying out a similar exercise in the wake of Jammu & Kashmir floods. The very severe cyclonic storm 'Hudhud' has caused widespread devastation in Visakhapatnam and other coastal districts of Andhra Pradesh. Thus the

Insurance claims are likely to cross Rs 4,000 crore reports Business Standard.

According to senior public-sector insurance executives, the largest claims are expected to come from Visakhapatnam, where there has been severe damage to commercial units and the naval base, as well as the airport. Initial estimates show that the claims on these could be as high as 1,800-2,000 crore.

Even the crop insurance business is expected to take a hit of 2,000 crore owing to destruction of crop-fields, especially in the coastal areas of Odisha. While not all general insurance companies have exposure to the crop insurance schemes in Odisha and Andhra Pradesh, most insurers have some exposure to the property claims that have begun to emerge.

Prime Minister Narendra Modi urged insurance companies to expedite the claims of the farmers who have been badly affected by the cyclone. Public general insurers are expected to take a major hit as large commercial establishments in Vizag are insured by them. This could impact their books in the third quarter of the current financial year. Private General insurers seem to have taken only a marginal hit.