Cyclone Biparjoy: Does your car and home insurance policy cover you against storm damage?

As cyclone Biparjoy intensifies, the western states of Gujarat, Maharashtra, and Goa have been placed on high alert. Apart from lives, the advancing storm carries the potential of causing significant damage to houses and car engines as well. It is, therefore, important to ensure that your home and vehicle are adequately covered by a home and motor insurance policy along with suitable add-ons for complete protection.

For the uninitiated home insurance covers three kinds of risks. The basic policy protects your house against fire and allied perils such as cyclones, floods and earthquakes. The second layer protects the contents of your house from both natural and man-made calamities, including burglary. The third covers peripheral risks such as accidents caused in your home or outside your home by you or a family member, and loss of baggage in transit, among others. These can either be bought separately or as a clubbed policy, such clubbed home insurance policies are known as comprehensive home insurance policies.

The fine print is that home insurance generally pays you the cost of construction and not the cost of land. In case the house has to be rebuilt, the cost of construction is arrived at by multiplying the carpet area of the house with the cost of construction in that city.

Motor insurance

A comprehensive motor insurance plan safeguards your vehicle against damage and losses caused by natural calamities such as cyclones, floods, thunderstorms, earthquakes, and more. In addition to the comprehensive coverage, it is advisable to look at add-on covers for extra protection. For instance, the engine protection cover safeguards your engine during cyclones. If you reside in an area prone to water logging or cyclones, make sure you have this add-on under your comprehensive motor insurance plan. Water can enter the vehicle engine during cyclones, making it susceptible to damage. Since the engine is one of the most expensive parts of the vehicle, repairing or replacing it can prove costly.

However, there are certain exclusions that you should be aware of, as any oversight can lead to claim rejection. Keep in mind that while the add-on may protect policyholders from engine damage due to water ingress, the claim may not be admissible if the vehicle is driven during a cyclone, as it can be deemed contributory negligence. Additionally, remember that you cannot purchase an add-on cover separately before cyclone season. Add-ons can only be obtained during policy renewal or when purchasing a new policy.

Cyclones can also damage the accessories of your car if water seeps in. To protect the accessories, such as rubber mats, headlights, wiper blades, and mud flaps, you can consider purchasing another add-on cover.

Claim Process

In the event of an unforeseen circumstance, it is crucial for the insured to promptly inform either the local office or the company’s call centre about the claim. Subsequently, the insurance company assigns a surveyor who evaluates the losses before settling the claim. While the insurer typically requests the claimant’s know-your-customer (KYC) documents for identification purposes, they often simplify settlement procedures for significant events. In some cases, insurers may only require the policy issuance date and year to cross-reference it with their database and facilitate the claim settlement.

Similarly, if your vehicle sustains damage during cyclones, it is crucial to inform your insurer immediately. Gather substantial photo and video evidence that can be shared with the surveyor during vehicle inspection. This will ensure a smooth process at the workshop and expedite the settlement of your claim.

To ensure a seamless experience during a calamity, it is advisable to familiarise oneself with the entire claim process in advance. By proactively understanding the necessary steps, you will be well-prepared to navigate the claim journey when unforeseen circumstances arise.