Cyclone Biparjoy landfall: How to buy home, car insurance covers keeping disasters in mind

Cyclone Biparjoy is scheduled to make landfall on the Gujarat coast and has been marked as a "very severe cyclonic storm" with maximum wind speed reaching up to 150 kilometres per hour. Director General of IMD, Dr Mrityunjay Mohapatra has said that Biparjoy is a very severe cyclonic storm with damaging potential. 

Natural disasters can unexpectedly cause severe damage to personal belongings, such as house, car, workplaces, and others. Therefore, insurance policies and covers play a vital role in providing financial protection during times of crisis like this. 

On Wednesday, Finance Minister Nirmala Sitharaman met the officials of the insurance companies and bank officials to review preparedness for the cyclone. 

"Banks and insurance companies should ensure that the staff get adequate care, food, and medicine during the cyclone. The claims originating from loss of life, fisheries, livestock, crops, boats, & property should be settled expeditiously," said Sitharaman. 

She added that banking services should be restored at the earliest post-cyclone to provide ease to the citizens. 

While the government is all set to offer relief to the affected ones, there are many other ways through which people can ensure that the losses can be minimised or compensated to some level.

Here are a few points to note before buying insurance covers, which additionally protect your belongings and assets during disasters, such as cyclones or floods:  

1. Investors can opt to buy a comprehensive car insurance policy, which covers damages during natural calamities such as cyclones, floods, earthquakes, etc. 

2. While buying car insurance covers, one should note what all clauses are being offered because most car insurance policies do not offer coverage against cyclones.  

3. Car insurance covers offered by car dealers during the purchase of cars mostly miss out on such provisions.  

4. For covering natural calamities like cyclones, floods, earthquakes, etc., one needs to buy a comprehensive car insurance policy or a standalone own-damage policy. 

5. Under the comprehensive car insurance policy, if the policyholder’s car is severely damaged during a cyclone, he or she can ask for a cashless claim.  

Also read: IMD predicts heavy rains, hailstorm, thunderstorms in these places as Cyclone Biparjoy set to make landfall; check details 

 

6. As per the policy clauses, which the policyholder needs to check before investing, the insurance company is responsible to fix you’re the damaged car. 

7. A comprehensive car insurance policy offers the benefit of no claim bonus (NCB), which means policyholders would get a discount on the premium renewals if they don't avail any claims in the policy terms.  

8. When buying a car insurance policy, the car owner should always keep the insured declared value, or IDV, in mind. It is the maximum current value of the car. 

9. Also, policyholders should note that a total loss means a situation in which the car damage is beyond repair. Such situations are common after disaster such cyclone 

10. If the total expense of repair is higher than 75 per cent of the IDV of the car, the insurance company is liable to settle the claim by paying the IDV. 

11. Protection for homes: The Insurance Regulatory Development and Authority of India (IRDAI) has standardised home insurance policies, under which policyholders can take protection against fire, lightning and flooding.  

12. Home insurance policies are available in three forms: one that covers the contents of the house, one that covers the building, and one that covers the building and its contents (furniture and electronic goods). 

13. Just like comprehensive car policies, comprehensive home insurance policies cover damages caused by natural calamities, such as cyclones, storms, floods. The policies largely cover damages to structure of the home and the contents inside. 

14. Some covers also cover personal liability coverage, wherein the policyholder can protect himself from financial liability if someone is injured on your property. 

 15. Crop Insurance covers are crucial for farmers. There are insurance policies available that cover losses owing to cyclones, floods, droughts, and other natural disasters.  

16. Some of the prominent covers are Pradhan Mantri Fasal Bima Yojana, Comprehensive Crop Insurance Scheme, and National Agricultural Insurance Scheme (NAIS). 

Claim settlement 

Following the disaster, the claim settlement policy is very crucial. Policyholders should reach out to insurers as soon as the calamity is over.  

The policyholders can click pictures and share them with the insurers to speed up the process.   

The insurance companies usually assign an officer to verify the claims and evaluate the losses. 
Besides looking at the losses, the insurer will also evaluate the KYC documents for identification purposes.

Claimants can contact the insurers through special helpline numbers, which are set up to fast-track claim settlement requirements as well.  

For car damage claims, it is crucial to inform your insurer immediately. Keeping photos and videos of the damaged vehicle can speed up the settlement process.  

Also read: Fire breaks out at Mukherjee Nagar coaching centre; students escape using wires 

Also read: Cyclone Biparjoy update: Weather to be impacted in Delhi, Rajasthan, Gujarat, Amit Shah cancels Telangana visit

Also watch: Full List of Cancelled Trains due to Cyclone Biparjoy. Also check Short Terminated and Short Originated Trains in Western Railway’s latest update ahead of Cyclone landfall