CARS IN FLOOD – INSURANCE AND MORE!
The entire world looks at CHENNAI, India as the city is facing an unprecedented rain-related disorder.
More than the rain, the human encroachment of water flow routes and the anticipatory failure & preparation against the possible dangers of water discharge from local Dams devastated the life and properties. The heart will melt and tears would roll out if we get into the deep of sufferance of those people and, the purpose of this article is to create some awareness on PERSONAL VEHICLES which we own out of our dream and hard earned money and to know, what one should do at times of such need.
It is a painful fact that motor vehicle accident causes nearly 14 deaths every hour in India and 70% of the two wheelers and almost 49 % of the four wheelers are uninsured in our country and all those risks like loss or damage to the vehicle and causing un expected third party death or damage by using such vehicle on public road becomes the sole responsibility of the owners themselves.
Many of us forget to renew our insurance policy from the next year onwards after registration or take only limited third party cover to save our money. IMAGINE THE PLIGHT OF SUCH PEOPLE NOW … !
Therefore, would like to share some facts and Dos and Don’ts for the benefit of our forum members: DOs & DON’Ts – CAR INSURANCE POLICY FOR FLOOD COVER
Check your insurance policy and renew the same in advance well before the expiry date. Insurance is a contract and the coverage will cease by midnight of expiry day. Damage / accidents occurring even after one minute will not be covered. You have to be careful especially when your expiry date happens to be a Friday or week end. Generally Saturday and Sundays are non-working days for general insurance companies in India.
Take a Package, comprehensive policy always. Though it appears expensive in the beginning, it will get reduced in every renewal to a maximum of 50% thereafter as NCB if you have not lodged a claim.
What is interesting , this No Claim Bonus is given to the owner and such owner can get the benefit of such discount in the first premium paid to his new car of similar category in future if he sells this one. Please note only comprehensive policy covers Theft of Car / Flood Damage / unexpected Accidental Damage made by a registered / duly licensed owner etc., apart from covering the compulsory third party liabilities. DOs & DON’Ts – CAR INSURANCE CLAIMS AGAINST FLOOD COVER
Flooding and inundation of vehicle due to floods are covered under motor insurance but, if you crank up the engine after water ingress, the chances of you getting the claim will turn bleak. This is because insurers would not be able to gauge whether the damage has been caused by inundation or subsequent cranking. Therefore call for the service assistance as such cars are need to be towed away and require systematic approach. WATER IMMERSED CAR OWNERS:
1. Don't start the car,
2. Tow the vehicle to a garage,
3. Drain engine oil completely, Replace new air filter and oil filter which is important. Remove engine intake manifold and clean all water entry.
4. Fill with new engine oil, Jack the car front wheels,(Don't start) hand rotate the wheel, which in turn engine gets cranking. This process enable oil circulation and mix with water inside the engine, do it continuously for 15 minutes, then drain engine oil , again fill fresh oil, do the same process again, drain oil, clean all plugs. Remove starter clean & Refit
5. Now fill with fresh engine oil start the engine. Run 1 or 2 minutes.
This will cost Rs.6 to 7 thousand. If you have no insurance assistance , can avoid engine failure due to water entry and save major expenses.
Please note that all parts damaged due to floods can be claimed. Depending on the level of submersion — complete or stalling after being driven in two/three-feet of water — repairs could cost from ₹1.5 lakh to ₹5 lakh. To set right engine damage alone could cost about ₹ 1.5 lakh. The most expensive parts in today's new generation cars are electronic sensors.
A typical motor insurance policy covers all essential car parts like upholstery, gear box, steering wheel and engine assembly subject to depreciation or nil depreciation depends on the policy obtained. Car accessories other than OE need to be declared and covered separately by paying additional premium.
FAQ – INDIAN MOTOR POLICY
This policy covers all types of vehicles plying on public roads. Highlights
This policy covers all types of vehicles plying on public roads such as:-
• Scooters & Motorcycles
• Private cars
• All types of commercial vehicles
• Motor Trade (vehicles in show rooms and garages)
As per the Motor Vehicles Act, 1988 it is mandatory for every owner of a vehicle plying on public roads, to take an insurance policy, to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property. A Certificate of Insurance must be carried in the vehicle as a proof of such insurance. Two types of covers are available:
1. Liability only policy. This covers third party liability for bodily injury liability and / or death and property damage. Personal Accident cover for Owner-driver is also included.
2. Package policy. This cover loss or damage to the vehicle insured in addition to (1) above.
No- claim discounts are available on renewal of policy, ranging from 20% to 50%, depending upon the type of vehicle and the number of years for which no claim has been made. Scope Liability Only policies:
The policy covers the vehicle owner's legal liability to pay compensation for:
1. Death or bodily injury to a third party person.
2. Damage to third party property.
Liability is covered for an unlimited amount in respect of death or injury and damage to third party property for Rs.7.5 lacs under Commercial vehicle and private car and Rs. 1 lakh for Scooters / Motor Cycles. Package Policy
In addition to the coverage under liability only, this policy covers loss or damage to the insured vehicle and its accessories due to:
1. Fire, explosion, self-ignition or lightning.
2. Burglary, housebreaking or theft.
3. Riot and Strike.
4. Malicious Act.
5. Terrorist Act.
6. Earthquake (Fire and Shock) Damage.
7. Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and Hailstorm.
8. Accidental external means.
9. Whilst in transit by road, inland waterway, lift, elevator or air.
10. By landslide/Rockslide
The policy also pays for towing charges from the place of accident to the workshop up to a maximum limit of Rs.300/- for Scooters/Motorcycles and Rs.1500/- for cars and commercial vehicles. The important exclusions under the policies are:
• Wear and tear, breakdowns
• Consequential loss
• Loss when driving with invalid driving license or under the influence of alcohol.
• Loss due to war, civil war, etc.
• Claims arising out of contractual liability.
• Use of vehicle otherwise than in accordance with `limitations as to use ' (e.g. private car being used as a taxi) Insurance Premium Rating factors:
Rating depends upon the following factors:
1. Insured Declared Value.
2. Cubic capacity
3. Geographical zone
4. Age of the vehicle
5. Gross Vehicle Weight of in case of commercial vehicles
6. Add on Covers Add on covers
The policy can be extended to cover the following risks on payment of additional premium:
1. Loss or damage to accessories fitted in the vehicle such as stereos, fans, air-conditioners etc.
2. Personal accident cover under private car policies for:
• paid driver
3. Legal liability to employees.
4. Legal liability to non-fare paying passengers in commercial vehicles.
5. Nil Depreciation, Courtesy Car, Medical Expenses, Personal Effects & Return to Invoice. Who can take the policy?
Any vehicle owner whose vehicle is registered in his/her name with the Regional Transport Authority in India.
How to select the sum insured?
The sum insured of a vehicle in a Motor Policy is referred to as the I.D.V., which stands for Insured's declared Value.
In case of theft of vehicle or if the vehicle is totally damaged and beyond repairs in an accident, the claim amount payable will be determined on the basis of the IDV. The IDV of the vehicle is to be fixed on the basis of manufacturer's listed selling price of the brand and model of the vehicle proposed for insurance at the commencement of insurance / renewal and adjusted for depreciation as per schedule.
IDV of vehicle which is beyond 5 years of age and of obsolete models of the vehicles (i.e. models which the manufacturers have discontinued to manufacture) is to be determined on the basis of an understanding between insurer and insured. How to claim?
In the event of an incident giving rise to a claim under the policy, the following steps should be taken:
In case of accidental damage to the vehicle:
1. Immediate intimation to the nearest office, which will issue a Claim Form.
2. Claim Form duly filled in to be submitted along with copy of Registration Certificate and Driving license of the driver of the vehicle at the time of accident as also estimate of repairs.
3. Vehicle will be surveyed by a Surveyor, appointed by the insurance company, who shall submit his report to the company. In case of a major damage to the vehicle, a spot survey, at the site of accident, would also be arranged by the company.
4. Final bills/cash memos are to be submitted duly signed by the insured.
5. Salvage of the damaged parts may be required to be deposited with the insurance company after approval of the claim. In case of theft of the vehicle:
1. Lodge an F.I.R. with the police immediately.
2. Inform the policy issuing office with a copy of FIR.
3. Submit the Final Police Report as soon as it is received.
4. Extend full cooperation to the surveyor and/or investigator appointed by the company.
5. After approval of the claim by the company, get the Registration Certificate transferred
in the name of the company, hand over the keys of the vehicle, submit a letter of
Subrogation and Indemnity on stamp paper duly notarized. In case of liability claim:
1. Inform insurance company immediately of any incident likely to give rise to liability
2. On receipt of summons from Court, the same should be sent to the company
3. Claim Form duly filled in along-with copies of Registration Certificate, Diving License, FIR
are to be submitted.
SOME SNAP SHOTS- PAINFUL!