Bangalore: On a fateful day of October 2013, a cyclone referred as ‘Phailin’ hit the states of Odisha and Andhra Pradesh and left many people homeless. The cyclone has prompted the biggest evacuation in India that has happened in 23 years with about 550,000 people moved to safety pockets of the states. However, insurance companies are not going to bleed since most of the property damaged by Phailin does not fall under insurance purview, reports M Saraswathy of Business Standard.

Most of the “kuchcha houses” (huts) and public properties are damaged by the torrential cyclone. Since these huts could not be claimed for, the early estimates reveal a claim amount of less than 100 crore. Two days after the cyclone hit the states, the insurers have received claims from companies of about 4-5 crore.

The claims are, however, expected to rise in the coming days due to massive flooding in coastal areas of Odisha as an aftermath of the cyclone. The insurers have not yet assessed the affected areas and are planning to wait for few more days before giving a final estimate.

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