While Rs 31 crore worth of claims have already been settled by the companies, officials are confident that another Rs 170 crore from exporters will be settled by the end of this month. Finance Ministry officials say that efforts are on to ensure that all claims are settled within the next three months.

Of the total 2,492 claims placed on the insurance firms, roughly 46 per cent are for fire policy. This policy includes damage done by floods, storms, tempest, and earthquake. Since most of the devastation was inflicted by strong winds and rain, this policy is responsible for almost half the claims. About 21 per cent of the claims relate to motor insurance, reflecting the number of vehicles which were destroyed by the cyclone. Another 12 per cent relate todamage done to ships under the marine hull policy. The rest involve engineering and miscellaneous losses.

The Gujarat Chief Minister met Prime Minister Atal Bihari Vajpayee and asked him to release Rs 600 crore as assistance from the National Calamity Relief Fund to rehabilitate families affected by the cyclone and to compensate for the public property destroyed in the calamity. Patel said that the total damage of public property, private assets, and loss of business are estimated at Rs 2169.91 crore.

A team led by the chairman of the GIC which included the heads of the four companies and a representative from the insurance division of the Union Finance ministry visited Gujarat to assess the situation and expedite the claim settlement process. The team met the Gujarat CM and Finance Minister as well. Claims worth Rs 70 lakh were settled on the spot by the team.

Though the total claim amounts to Rs 1,200 crore, there will be a net outflow of only Rs 200 crore. The rest of the money will be compensated tothem by way of re-insurance, say officials.

United India Insurance faces the maximum amount of claim among the four subsidiaries of GIC. Its claims total to Rs 593.88 crore. Oriental Insurance faces a pay out of Rs 408.97 crore; New India Assurance Rs 147.01 crore; and National Insurance about Rs 69 crore. These figures are estimates based on the claims received as on July 13. The next step is the assessment of the actual damage at the site by surveyors of the insurance companies. The final figure could be lesser as the claims are usually inflated, say officials. As a result, the final figure would be available only after each claim is settled and paid.

Already there have been some reports of fraud in the claims filed. While inflating the claims is popular, another way is back-dating claims. At least one instance of back-dated claim of about Rs 8 crore has been discovered by one of the companies. The modus operandi is simple.

Once the calamity is over, a company or individual approaches the localinsurance office and buys a policy. And with the connivance of the insurance executives, back-dates the policy to a period before the calamity.