Basix settles Rs.5M worth flood insurance claims

Microfinance Focus, Dec. 24, 2009: Hyderabad-based Bhartiya Samruddhi Finance Ltd, a microfinance institution, a flagship company of the BASIX Group, along with Royal Sundaram Insurance company, has settled insurance claims of over Rs. 51 lakh of its customers who were victims of the recent floods in Kurnool district of Andhra Pradesh and Bellary and Raichur districts of Karnataka state, said a press release.

On Oct. 2, 2009, nearly 373 villages in the states of Andhra Pradesh and Karnataka were affected by unprecedented floods. Apart from life casualties, livestock and micro-enterprises were washed out severely affecting the livelihoods of several people.

BASIX has been active in the region for over a decade offering a wide range of Financial Inclusion services such as Savings, Insurance, Remittances and Credit; and Livelihood Promotion services such as Agriculture, Micro-business & Institutional Development.

For all affected customers, who had availed of its Insurance Services, BASIX and their insurance partner Royal Sundaram, have passed on the insurance benefit proactively, instead of waiting for them to lodge their claims. This was done with a view of minimizing the lead-time to settle a claim and to ensure that the affected customers could quickly re-establish their livelihoods.

BASIX and Royal Sundaram’s Emergency Response Team has organised an onsite survey to collate all required data and a simplified claim form was also specially designed to facilitate early settlement.

In the first phase of flood claims survey, 1,149 claims were reported, including 125 for livestock and 1,024 for Micro enterprise, in Kurnool, Bellary and Raichur districts. These claims were processed after verification by using the enrolment forms available in the BASIX units/ branches, said the statement.

Following this, a sum of Rs.50,76,710 pertaining to 1,068 claims have been handed over for customer disbursements, toBSFL COO Mr.D. Sattaiah by Mr. M S Sreedhar, COO, Royal Sundaram. BASIX, with its partners, Royal Sundaram and AVIVA, offers insurance products covering life, health, livestock, enterprise,rainfall risks for all its credit and non-credit customers. Around 1.6 million members are covered for life and health insurance and 250,000 customers are offered livestock insurance and other products. Cumulatively since 2001, BASIX has settled over 50,000 claims to the tune of nearly Rs.200 million, the statement added.

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