Speaking to The Financial Express from Ahmedabad, Mr AP Pradhan, chairman & managing director of New India Assurance, stated that the four companies have formed a co-ordinating committee at the level of their regional managers to unitedly deal with claim settlement issues.

"We have delegated them the necessary power to settle higher claims and have decided to allow major waivers of procedures for settling any of such claims," said Mr Pradhan.

Mr D Sengupta, chairman of General Insurance Corporation, Mr Pradhan, Mr BD Banerji, chairman & managing director of Oriental Insurance, Mr KN Bhandari, CMD of United India, Mr PB Ramanujam, general manager of National Insurance, Mr T Lakshamanan, secretary-general of the Association of General Insurers (GIPSA) representing the state-owned non-life industry, have met state government officials, including a minister, to discuss the issue of claims settlment.

Though a minimum total claim of around Rs 500-600 crore is expected out of the devastation, according Mr Pradhan, the companies will be able to assess the range of losses within a few days as the staffers of the companies have started working on it from Monday itself. ``We are expecting most claims from the personal accident policy segment,'' noted Mr Pradhan. He said the companies were also trying to create a network of surveyors to certify the damage quickly.

Most of the small and middle-level industries, which have suffered damages, may not qualify for the claim settlement as they only take the fire policy and hence disqualify from them from any claims for the damages caused by earthquakes.

Though in the case of shop-keeper and household policies, the peril of earthquake is covered, not many claims are expected as usually not many Indians buy these policies. In terms of both life and non-life policies, Gujarat is one of the most heavily insured states of the country.

However, the non-life companies heaved a sigh of relief as mega set-ups, including Reliance Petroleum's Jamnagar petrochemical project as well as the plant at Hazira, Essar Steel's facilities at Hazira and the Essar refinery construction at Jamnagar, and Mundra port (with liquid storage facilities) have escaped unscathed from the killer earthquake. But Gas Authority of India's gas terminals at Bijapur, which is part of the Hazira-Bijapur-Jagdishpur pipeline, the Indian Petrochemicals Corporation Limited's refinery at Baroda, and the Kandla port were damaged by the earthquake. IOC's Kandla-Bhatinda oil products pipeline has been shut down by a power shortage at Kandla.

This is for the second time in recent times that the Kandla port, which serves the hinterland of western, central and northern India for crucial imports of petroleum products and chemicals and exports of agricultural commodities, has been hit by natural calamities. Three years back the port suffered extensive damages due to a cyclone.