The two cyclones, Amphan and Nisarga, which hit India in quick succession over the last one month, have caused damage to life and property. A lot of pictures were shared on social media, showing cars and bikes damaged because of tree falls, or being submerged in water.
Worry not. The cost incurred for cars and bikes that have been damaged by the strong winds can be recovered from your motor insurance product.
Motor own damage (OD) cover offers financial protection against losses due to natural catastrophes like cyclone, flash floods, landslides, storm and earthquake.
If your vehicle is among those damaged in the recent cyclones, here is what you should do to file a claim with your insurance company:
First call the insurance company before touching the vehicle
In case a tree or any other structure has collapsed on the vehicle damaging it, don’t attempt to remove it. In case you damage the vehicle further in this process, claims payment process will be delayed.
A toll-free number is provided by every insurance company. Call the number within 48 hours and provide all the details related to the incident and the vehicle involved. Keep the policy number and vehicle registration details handy.
In case there is an urgent need to use the vehicle, you can visit the nearest authorised garage and get the vehicle repaired. However, seek all documents including inspection record as well as bills for purchase of spare parts and all repairs.
Start collecting pictorial evidence
Due to the Coronavirus (COVID-19) lockdown, general insurers across India are allowing filing of claims online and through the mobile phone. For this, detailed pictures of the vehicle to show the extent of damage will be required.
Using your mobile phone camera, click as many pictures of the interior (if safe) and exterior of the vehicle and send it to the insurer.
Wait for the vehicle to be towed away
All insurance companies have tie-ups with garages across India. Once you have made the claim request, the insurer will send service personnel from the garage to tow away the vehicle.
After an inspection is made, the insurer will be informed by the garage of the estimated costs of repairs. Depending on your insurance cover, the company will pay the claim.
For instance, if specific spare part replacements are not covered by an insurance policy, you will be required to pay for that amount. Also, in case the vehicle was being used by someone else other than the insured and damage was caused during that period, claims are likely to be rejected.
A surveyor may inspect the claims, if needed
Motor claims upto Rs 50,000 do not need any surveyor to assess the extent of the claim. However, in case it is a large amount for an SUV or a luxury car/bike, it is essential that a surveyor/loss assessor is appointed.
This individual will be deputed to assess the extent of loss and declare how much of it is payable by an insurance company. For instance, if your car was bought for Rs 4 lakh, in case of damage beyond repair due a cyclone, only a part of the claim will be payable excluding depreciation.
In case of motor insurance, each car/bike has an insured declared value (IDV) which is the market value of the vehicle depending on its age. An insurer look at the incident as ‘total loss damage’ only if the repair amount exceeds 75 percent of the IDV.
Why are motor claims rejected
Though insurance companies will pay claims in case of incidents like cyclone, there are cases where there could only be partial payments or even rejection.
These are the reasons why that could occur:
--Insurer was informed late: Your insurer needs to be informed of a damage within 48 hours.
--Car registration details were incorrect: In case, the vehicle you have insured is not in your name or has been driven by someone else the claim won’t be payable.
--Unauthorised modifications: Any modification done to an insured vehicle has to be with the prior permission of the insurance company. Else, the OD claim could be rejected.
--Repairs were done before inspection: Though it is advised that policyholders wait for the insurer to tow away the damaged vehicles, an urgent repair at unorganised road-side outlets could lead to claim rejections or partial payments. This is because unauthorised dealers could provide an inflated bill or could even fit defective parts.
--Usage for commercial purposes: If you have given your own bike/car for rent to someone else for commercial usage like deliveries or private car service - motor OD claims due to damage will not be payable.
--Doubtful report by surveyor: If the surveyor suspects that the vehicle has been damaged intentionally to seek insurance damage, there could be an adverse report presented to the insurer delaying or rejecting claims. Third-party eye witnesses could also be called to present evidence.
Whether it is a major or minor motor claim, the insurance company should be the first point of contact. If you have all the documents in place and ready evidence of the incident damaging the vehicle, the chances of the claim being rejected are low.
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