The recent floods in Chennai and other parts of Tamil Nadu left the entire nation in a state of shock and caused extensive collateral damage to life and property. It is deemed the costliest flood of 2015 and among the costliest natural disasters of the year.
In the wake of this disaster, ICICI Lombard received approximately 5000 motor insurance claims that surmounted to more than ₹ 50 crore, and this is merely from the motor insurance segment. The company's Chief-Underwriting, Claims and Reinsurance, Mr. Sanjay Datta, said, “On property insurance front, the industry is likely to have received claims valued at around ₹ 2,000 crore post Tamil Nadu floods.”
According to a report released by ICICI Lombard, the Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched in early 2015, created the much-needed awareness about health insurance in the country. This contributed to an astonishing 17% rise in the health insurance premium – from ₹ 17,495 a year ago to ₹ 20,443 crore in 2014-15. Moreover, catastrophic events like the Chennai floods of 2015 also make people realise the importance of health, motor and other covers.
This awareness and the general rise in people under the fold of PMSBY has helped curb medical inflation to a considerable degree. Medical inflation, which was initially at 9.5% in 2012-13, dropped to 6.5% in 2013-14; in 2014-15, it has been at an all-time low at 5.5%.