Videos of vehicles getting washed away in floods and rains have started surfacing across social media. It is no surprise that Cyclone Michaung has taken Chennai city by storm and among other severely impacted assets, motor vehicles have emerged as one of the prominent casualties. This has not only added to the despair of individuals but sparked apprehensions about the looming financial burden of their repair.
This article seeks to provide an extensive guide on navigating the process of claiming damage caused by Cyclone Michaung under motor insurance policies.
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The first and foremost is to keep calm and be patient while dealing with the claim process. A comprehensive insurance policy comes handy when it comes to safeguarding against the unpredictable forces of natural disasters, particularly floods. While this insurance type covers extensive repairs for vehicles damaged by floods, it is important to note that certain components such as engine or gearbox damages, may not be included. To bridge these gaps in coverage, incorporating specific add-ons becomes essential for an enhanced and tailored protection plan.
These supplementary options offer financial safeguards and can be customized to provide additional coverage. Key add-ons include:
Engine Protection Cover: This add-on provides financial coverage for the repairs or replacement of damaged engine parts resulting from water ingression—a common concern during floods.
No Claim Bonus (NCB) Protection Cover: Preserving NCB benefits even after filing a claim, this add-on ensures the retention of earned discounts over consecutive claim-free years.
Return to Invoice Cover: In the event of irreparable damage due to flooding or theft, this cover allows the policyholder to claim the purchase price or invoice value of the car.
Zero Depreciation Cover: By eliminating depreciation from the claim calculation, this add-on guarantees the policyholder receives the total value of car repairs.
Consumables Cover: This add-on protects against expenses related to consumable items like lubricants, engine oil, nuts, bolts, and grease during accidents or natural calamities.
Roadside Assistance Cover: Offering 24×7 emergency roadside assistance, including towing services and various benefits, this add-on proves invaluable if the vehicle becomes stranded due to floods.
Initiating a claim for vehicle damage resulting from floods follows a relatively straightforward process. Policyholders should promptly contact their insurance company, providing evidence such as photographs or videos showcasing the extent of the damage.
Essential documents, including the car’s Registration Certificate, the owner-driver’s Driving License, a soft copy of the Policy Document, and any relevant evidence-related documents, should be readily available. Following the insurance company’s assessment, the claim will undergo processing.
However, something unexpected might happen despite the submission of all necessary documents. Instances of claim rejection may surface due to identified consequential damage—harm resulting from actions that may or may not be under one’s control. For example, attempting to crank the engine while submerged underwater can lead to a hydrostatic lock and subsequent damage not solely attributable to flooding. To mitigate such situations, it is advisable to invest in an engine protection add-on.
In conclusion, individuals residing in flood-prone areas are strongly advised to consider motor insurance policies and enhance coverage with the appropriate add-ons.
This proactive approach ensures comprehensive protection against potential financial setbacks resulting from flood-related damages to vehicles.
-The author is Chief Underwriting Officer, ACKO. Views expressed are personal.
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