Bengaluru floods: General insurers brace for more claims as incessant rains cause damage to vehicles

Acko General Insurance said it has received over 100 claims so far. “Rains are expected to continue, so we do see a rise in claim intimations in the next few days. Most claims we have received so far relate to damage to parts, while around 20 percent are, in fact, full damage claims because of major impact,” says Animesh Das, Senior Director, Motor Underwriting, Acko General Insurance.

The Insurance Regulatory and Development Authority of India (IRDAI) had asked insurers to simplify and expedite the claim settlement process earlier during floods in Maharashtra, Andhra Pradesh and Tamil Nadu. It is possible that the insurance regulator will notify similar guidelines this time as well.

However, at your end, ensure that you take all precautionary measures and inform your insurer of such claims at the earliest. Damages to your vehicles will be covered under the own damage component of your comprehensive motor insurance policy.

Also read: Private residences, luxury villaments submerged across 'Billionaire Street' in Eastern Bengaluru

Navigate flooded areas carefully

There is very little that you can do if — as we saw in Bengaluru — your housing complexes and parking lots get flooded due to incessant rains.

However, if you are driving on waterlogged roads, you need to take certain precautions to ensure that your actions do not aggravate the damage. And protecting your car’s engine in waterlogged spots is one of the most crucial measures.

“Do not rush to start your vehicle’s engine until you know that water has completely receded. If the engine area is flooded with water, then the chances of water ingress are higher,” says Ashwini Dubey, Head, Motor Insurance Renewals, Policybazaar.com.

This could result in major damage to your car and worse, your insurer will reject the claim unless you have purchased the ‘engine protect’ add-on feature along with your base policy.

“Damage to the engine due to liquid ingress is not covered under base policies. If you have an engine protector add-on, however, even such claims are paid for,” says Dubey.

Also read: Motor insurance riders: All you need to know for a smooth ride

If you are stranded on a waterlogged street, consider leaving the car behind and having it mechanically towed away. “Damage to the car’s exterior is covered. But when you crank up the engine in flooded areas leading to water entering the engine area, the damage is an exclusion, and hence, not paid for (unless you have the engine protector add-on),” says Das.

Besides water ingress in the engine, cars also suffer damage due to tree falls. “During intense rains, tree branches can fall on the cars if they are parked in open spaces. As far as possible, take care to park your vehicles in covered areas to ensure better protection,” says Dubey.

Also read: Five insurance dos and don’ts for your car this rainy season

Intimate claims on priority

In affected areas in Bengaluru, even housing complexes and covered parking areas got flooded, leaving no scope for car owners to take any precautions. In such cases, you would do well to inform the insurer about the damage immediately. Since claims can be intimated online and through apps, notifying insurers instantly is now simpler.

“Generally, it is not a good idea to use your car in a flooded area as it could result in multiple issues. If electrical components are not functioning properly, using the car in such a situation can be tricky – not only from the perspective of damage to the car but also your own safety,” points out Das.

Instead, inform your insurer and make use of roadside assistance or towing services rider benefits that insurance companies offer to extricate yourself from flooded spots.

“Once the water level decreases or water has drained out of your vehicle, get it inspected by a qualified mechanic or towed to the nearest workshop for inspection and further necessary actions such as engine flushing and cleaning,” says Adidamu.

Asking the insurance company to tow away your vehicle can mean fewer hassles at the time of claim settlement. “Reaching out to your insurer for support is a good idea in general. If you try to move the car on your own and take it to the garage, the insurance company is not in a position to conduct an on-the-spot inspection. If the insurer tows the car away, on the other hand, the scope for disputes is narrower,” says Das.