Only comprehensive insurance to cover submerged and damaged vehicles

PUNE: The general insurance sector is anticipating claims in crores in the coming days with companies stating that only those who have a comprehensive vehicle insurance would be covered for losses and damages caused by natural calamities such as floods, cyclones and hailstorms.

Those vehicles which have comprehensive cover will be insured, irrespective of the vehicle being submerged or damaged. A source from the insurance sector told TOI that they were expecting the motor insurance claims to pick up slowly in the district, as it had during the recent Kolhapur and Sangli floods. The sector stated that the claims have to be intimated to the respective offices immediately to ensure a cashless process.

In the Kondhwa area, many vehicles are still in the parking areas of the societies. They are yet to be drawn out by the fire brigade and corporation officials. The residents fear their vehicles would be completely damaged as they have been submerged underwater for over 48 hours. The Latitude, a residential society in Kondhwa, has over 40 cars submerged underwater for over 48 hours. The residents have applied for claims of ‘total loss’ as the damage cannot be repaired. “Our cars will be given up for scrap considering the vehicles have been underwater for so long,” a member said

“Only those vehicles that have comprehensive insurance will be covered. The claims to companies have been trickling in slowly. There is a huge loss estimated,” an official from the insurance sector stated. Engine seizure is among the common claims during monsoon. It’s also one of the most disputed claims, as insurers reject all cases where the water enters the engine and damages it.

When water enters the engine from the air intake system and seizes it, it is called hydrostatic lock. It usually occurs when a driver tries to restart the car multiple times after the water has entered the engine. But, in certain cases, it can also occur when the car was moving through a waterlogged area. However, insurers reject all claims pertaining to hydrostatic lock citing the customer was negligent and damaged the engine trying to restart it.

The officials from the insurance agency said that it is best that after the vehicle is taken out of the water it is towed to the garage without starting the engine. “The insurance companies need to be contacted immediately for the claims,” an official from the National Insurance Academy said. An official also warned that if owners re-start the vehicle a number of times, the claims could get difficult.

“If the seizure occurs while driving through a water logged area, it’s an accident. Insurers need to reimburse the cost of repair for an accident. But if the seizure occurs because the customer tried to start the car multiple times, it is negligence,” an official from the general insurance company said.

Source: The Times of India