The heavy floods that swept through Chennai about a week ago led to a massive destruction of property. Insurance companies are gearing up to receive equally massive claims. Many claims have already been initiated with the ticket values for small vehicles ranging between Rs 50,000 and Rs 60,000.
Tickets for vehicles that have an engine capacity of more than 1,500CC will be between Rs 8 Lakh to Rs 10 Lakh. According to the insurance regulations and policies, the insured may forward a claim because the vehicle was subjected to natural calamities. However, there are provisions that are designed to limit the number of claims. In this case, the insurance firms are only interested in paying for the damages that have strictly been caused by the flooding. For example, the client cannot claim a replacement of his/her vehicle's brakes.
In situations where the vehicle was completely washed away, the insurance firms will categorize it as a complete loss and the client will be paid back through the insured declared value (IDV). Here are some of the major points that the insurance will address.
Most of the claims involve cases where the engines were damaged when they got submerged in the water. Motor insurance does not usually involve such damages. Premiums will be influenced by age, engine capacity, make and model. This type pf cover can cost an extra Rs 1,500.
Consumables and Fittings
Consumables include essentials such as brake oil, oil filter, bearings, bolts, etc. They are not included in the policy. Fittings such as the AC and the radio might be subjected to water damage especially if it was an aftermarket installment. These will not be replaced.
External damages caused by the impact
Insurance firms have been receiving so many claims on account of external damages. There were many cases reported where vehicles were washed away and damaged by the strong currents.