Kottayam: Insurance companies are reluctant on covering business and home loans post-deluge, bankers here say.
The Idukki District Cooperative Bank has many such instances to cite. In the case of its Vattavada branch, their application for three shops they financed is pending even after a month with the United India Insurance.
“When our staff contacted the insurance company, they cited some technical issues. But they had no such issues earlier,” Y. Anil Kumar, Vattavada branch manager, told DC.
The Mankulam branch also faced the same, and according to Nibu A.N., its manager, five of their proposals are awaiting the approval.
“Previously the company used to approve proposals within a week," he told DC.
"Moreover, the insurance companies are also setting new conditions whereas previously filling a form was simple."
The Adimaly branch, which had sent proposals for five homes and as many shops, is also facing a delay.
The United India Insurance company is now demanding a copy of their tax returns, photographs of the house and other details. "The company may be unwilling to give the insurance on doubts that fake claims may creep into this. In that case, they could have conducted some field verification," branch manager A.P. Baby said.
PR Rajesh, the general manager of the Idukki DCB, said the scenario with most of his branches is the same.
"We are finding it difficult to give retail loans in this new situation," he told DC.
“We have got information that they are acting on directives from the top,” he said.
The Idukki district administration has estimated 1,535 houses destroyed, 3061 damaged and 11,530.64 hectares of crops lost in the floods and landslides since May 29.
