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Insurers see claims in India rising to decade-high on worst floods

Insurers from Lombard to AIG are bracing for a surge in Indian claims to a 10-year high after unprecedented floods last week ravaged the city that is home to Ford and BMW factories.

By Anto Antony, Bloomberg, Bhuma Shrivastava | Updated on December 07, 2015
Residential areas are seen inundated by floodwaters in Chennai, India, Saturday, Dec. 5, 2015. Although floodwaters have begun to recede, vast swaths of Chennai and neighboring districts were still under 8 to 10 feet of water, with tens of thousands of people in state-run relief camps. (AP Photo/Arun Sankar K)

(Bloomberg) — Insurers from Lombard General Insurance Co. to American International Group Inc. are bracing for a surge in Indian claims to a 10-year high after unprecedented floods last week ravaged Chennai, the city home to factories of Ford Motor Co. and BMW AG.

Disruption in road, rail and communication networks hindered efforts by the automakers to resume production after they shut down factories on Dec. 2. Officials put the death toll at 277 from the deluge since the start of October as a threefold increase in seasonal rainfall brought the metropolis of 9 million to its knees. The Associated Chambers of Commerce and Industry of India estimated losses to businesses at more than 150 billion rupees ($2.3 billion).

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