Maruti Suzuki India Limited have insurance claims to just Rs.5 crores damages to plant. But with production at a complete halt, Maruti is losing Rs 70 crores with each passing day, so the damages at the Manesar Plant now exceeding Rs.400 crore mark. This may prove to be costly for the auto giant. Maruti has insurance cover of Rs.16,213 crores with four insurers namely Bajaj Allianz, National India Insurance, United India Assurance and Iffco Tokio. But these do not cover loss of production due to interruptions but only takes care of destruction to plant and machinery.
This will prove costly for the company which is already battling with lock out at the company plant in Manesar following last Wednesday’s riot and mayhem. Insurers have sent their surveyors to the site to assess damage to property, but company sources have confirmed that the cover does not include losses incurred due to interruptions in business.
While Maruti Suzuki is going under stormy weather, other auto companies are reveling in the sunshine. Companies like Hyundai, are stepping up production and instigating dealers to initiate sales. Hyundai is pushing forth sales such as their i20 and Verna models while Maruti Swift and Dzire waiting periods are extended indefinitely.
Hyundai has stated that higher incentives will be paid to dealers selling i20 and Verna. Skoda Auto too revealed that there would be benefits seen to their brands like Skoda Fabia due to the situation in Manesar while Ford India is also banking on delays on the part of Maruti Suzuki to ensure better sales of their products.