An insurance claim is a formal request of the insuree to the insurance company for a payment on the basis of provided terms and conditions. These claims often range from tragic or sometimes bizarre personal claims, to that arising from sufferings due to disaster of global cataclysmic proportion. From pandemics and tsunamis to claims for feline surgery, let’s have a look at the top 15 most expensive insurance claims awarded around the world:
Here Are 15 Top Most Expensive Insurance Claims
Financial Crisis Of 2008
Britain and various other countries suffered a financial crisis in 2008 that was widely regarded as the worst to happen since “The Great Depression” in the 1930s. This was caused by the sudden collapse of the banks and insurance giants such as Lehman Brothers, Northern Rock and Bear Stearns. As a result that many stock markets crashed, businesses fell and the unemployment hit an all time high. But the hardest hit sector of all was insurance sector that had to hand out insurance claims estimated around £14 trillion.
Hurricane Season Of 2005
The Atlantic Hurricane season was the worst in American history as three major hurricanes viz. Hurricane Katrina, Rita and Wilma hit the North America coastlines in 2005. There were an estimated death toll of over 4000 and spread across many different claims owing to the damages caused to the homes, businesses and for personal injuries and fatalities insurance companies had to payout an estimated $130 billion.
The Japanese Tsunami Of 2011
The Tsunami that hit the coast of Japan in the year 2011 led to a combined insurance loss of an estimated approximate of about $100 billion.
9/11 Terrorist Attack
The terrorist attacks on 11th September, 2001 that led to the destruction of the New York Twin Towers of the World Trade Centre claimed nearly 3,000 lives. In financial terms, insurance companies had to payout around $40 billion for insured losses to business interruption claims, property and vehicles damage claims, life insurance, aviation liability insurance, workers compensation etc.
Chinese Earthquake Of 2008
China was hit by a huge earthquake in Sichuan Province in 2008 that is regarded as the deadliest earthquake to hit China since 1976 and one of the costliest in Chinese history. The loss due to the disaster included a death toll of around 68,000 and at least 4.8 million people were left homeless. Although most of these were not covered by the insurance, but still the damage cost rose to an estimated $20 billion.
Indian Ocean Earthquake And Tsunami In 2004
The undersea earthquake and the subsequent tsunami shook many countries in the Indian Ocean belt on the Boxing day in 2004.The tsunami, one of the worst in the history, claimed 227898 people, with Indonesia being the worst affected with around 170,000 deaths. The financial impact of the disaster was also devastating with Insurance companies facing claims of around $1.3 billion due to property loss, life insurance at about $250 million and travel loss claims of about $50 million.
North East Blackout (US/Canada Power Outage) Of 2003
In The Northeast blackout in 2003, an estimated 10 million people in Ontario, Canada and 45 million people in eight states of the U.S. suffered a severe widespread power outage for about seven hours. Virtually all businesses suffered as a result and the power outage cost insurance companies around $6 billion due to the grounded flights, looting, business interruptions, trains and flights cancellations etc.
Eyjafjallajokull Volcanic Eruption Of 2010
In the year 2010, Iceland’s “Eyjafjallajokull” volcano erupted and released massive ash clouds which drifted south towards the Atlantic and Europe that created a no fly zone over much of Europe for six consecutive days and disruption to flights continued for weeks thereafter. It cost EU an estimated over $3.4 billion as airlines and hotels lost revenues and as hundreds of flights to got cancelled and payouts for over ten million compensation claims from landlocked travelers in different places were entertained.
China’s SARS Outbreak In 2003
In 2003, the global outbreak of Severe Acute Respiratory Syndrome (SARS) started from Guangdong province of China and reported to cause nearly 800 deaths. The resulting deaths and travel cancellations and business interruptions in in the infected area affected the insurance companies with a payout of nearly $1 billion.
Swine Flu Pandemic In 2009
The H1N1 pandemic or commonly known as Swine Flu out broke from Mexico in April 2009 and claimed nearly 18000 lives and accounted for approximately 4% of 250,000 to 500,000 annual influenza deaths. The death toll, travel cancellations and business interruptions were largely responsible for the subsequent insurance claims made, whose exact value is still not ascertained.
Fatal Car Accident
In 2012, a lawsuit in London (United Kingdom) involving a head on car accident. Agnes Collier, a 17 year old student who was paralyzed as a result of the accident, had lost her mother in the accident. The dispute was settled for an amount of over $37 million, paid out by the involved insurance agencies.
Slip And Fall Accident
In the year 2012, a victim from Virginia broke many leg bones by slipping on the ice while getting out of his apartment. The victim, also being a diabetic, later developed some serious complications due to the accident which led him to get his legs amputated. Moreover, due to the involvement of the landlord in not dealing with the fallen snow led the victim getting a staggering compensation claim of $7.75 Million.
Car Prototype Testing
In 2007, car engineers crash tested 2 Bugatti Veyron prototype cars with combined car cost of about $1.6 billion and the loss incurred was paid out by the insurance claims, making it the highest recorded vehicle loss insurance payout ever.
Most Expensive Pet Insurance Claim
In the year 2010, this astonishing insurance claim was registered for a feline renal surgery of just a simple hybrid Moggy. This insurance claim, often regarded as the most expensive pet insurance claim ever, rose to $22,000!
Rowan Atkinson Car Crash
Known for his performances as Mr. Bean, Rowan Atkinson sustained some minor injuries in a road accident with his $1.05 million worth McLaren sports car. The goes to the records as the biggest auto insurance claims in UK which is almost 3 times greater than the previous record of £310,000!.
While the insurance business was brought about to compensate the victims of misfortunes and accidents, some opportunists take this opportunity to collect benefits by exaggerating or even often faking an event to earn cash.