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Business
Gujarat floods spark insurance claims worth thousands of crores, insurers raise industrial rates
✍️ The Economic Times
🗓 18 Sep 2026, 06:17 AM
👁 7
The recent floods in Gujarat have generated insurance claims amounting to several thousand crore rupees, leading insurers to increase premiums for industrial risk coverage.
Heavy monsoon rains caused extensive flooding across Gujarat, submerging agricultural fields, industrial estates and residential areas. Insurers report that the disaster has triggered insurance claims running into thousands of crore rupees, the highest single‑event payout in recent years.
In response to the surge in claims, major insurance companies have announced a revision of premium rates for industrial risk policies. The adjustments are aimed at offsetting the heightened exposure to flood‑related losses and to maintain the financial solvency of the sector.
Industry bodies warn that the higher premiums could increase operating costs for manufacturers and logistics firms operating in flood‑prone zones. They are urging the government to accelerate flood‑mitigation infrastructure and to consider risk‑sharing mechanisms that could temper the impact on businesses.
In response to the surge in claims, major insurance companies have announced a revision of premium rates for industrial risk policies. The adjustments are aimed at offsetting the heightened exposure to flood‑related losses and to maintain the financial solvency of the sector.
Industry bodies warn that the higher premiums could increase operating costs for manufacturers and logistics firms operating in flood‑prone zones. They are urging the government to accelerate flood‑mitigation infrastructure and to consider risk‑sharing mechanisms that could temper the impact on businesses.