Cyclone Biparjoy leaves a trail of financial loss. Here’s how to make insurance claim for motor, home damage

After looming over the Arabian Sea for several days, Cyclone Biparjoy made landfall on the Gujarat coast Thursday evening, leaving behind a trail of devastation, and emotional as well financial setbacks, including damage to property like vehicles and homes. As claims are expected to pour in after a few days for insurance companies, T A Ramalingam, Chief Technical Officer of Bajaj Allianz General Insurance, talks to BT about whether motor and home insurance policies cover the cyclone damage and how to claim it. Edited excerpts:

BT: Does my motor insurance cover cyclone or flood loss?

TAR: A comprehensive motor insurance policy, which is one that provides third-party liability and own-damage cover, can cover losses from cyclones or floods. A standalone third-party motor insurance policy will not cover losses to the insured’s vehicle. Hence, it’s imperative to have a comprehensive cover for damages to the insured’s vehicle due to natural calamities like floods, storms, earthquakes, etc. The insured can also opt for add-on covers like an engine protector cover that covers damages caused to the engine due to water seepage during floods or gearbox breakage due to oil leakage. Other add-on covers like depreciation shield cover, ensures that the age of the vehicle doesn’t affect the claim amount paid for spare parts.

BT: Does home or property insurance cover cyclone damage? What are the exclusions?

TAR: Home insurance provides protection for the insured’s home, which includes cover against natural calamities like cyclones, floods, storms, earthquakes, inundation, etc., where you can not just shield the structure of your house but also the contents within. If the insured stays in an area that has a higher probability of being impacted by any natural catastrophes like floods and cyclones, then comprehensive home insurance is a must and is offered at affordable premiums by insurers. Customers can buy this policy for a year or for an extended period and customise it as per their needs.

Typically, a home insurance policy does not cover loss/damage to your home structure and/or contents in scenarios where there was intentional/wilful destruction of the property (home and contents), pre-existing damage to the structure of your home and contents, mysterious disappearance and unexplained losses, improper handling of contents, manufacturing defects in electrical, mechanical and electronic items amongst others, war, nuclear radiation, etc

BT: What is the claim process for motor insurance?

TAR: To initiate a claim owing to damage caused by floods or cyclones, the first step would be to inform the insurance company regarding the damage or loss, which can be done through their customer care number/toll-free, website or even on their apps. A surveyor appointed by the insurer will assess the damage to your vehicle and prepare a report. The insurer will accordingly inform the insured regarding the extent of damage. Subsequently, the insured can get repairs done at the insurer’s network garage on a cashless claims basis or at their preferred garage and attain a reimbursement claim. Insurers also provide on-the-spot faster claim settlements where sharing pictures of the damages to the vehicle are uploaded on their app, and the claim can be settled. 

BT: What is the claim process for a home insurance policy?

TAR: First and foremost, the insured must inform the insurance company immediately about the damage to their home owing to, in this case, a flood or a cyclone. The insured must provide the insurer with all necessary information, including the extent of damages. The insurance company will assign a surveyor to assess the damages and prepare a report detailing the damages. The policyholder must fill out the claims form providing accurate and detailed information about the incident and losses. The insurance company will review the claim form, and the claim will be settled based on the policy terms and conditions.

BT: What are the common mistakes made while buying a policy and making a claim?

TAR: Learning from mistakes is more important to avoid making it again.

• Provide all the necessary information to your insurer in order to receive plans covering your needs.
• One can opt for a comprehensive home insurance plan that covers the complete structure of their home including all type of contents. In case of any natural disasters, your home insurance will cover any damage to your home including its compound walls, as opted. One can also opt to insure only the contents of one’s house which would cover furniture, appliances, electronics, jewellery, paintings etc.
• Always read your policy document, ask questions, and understand the exclusions and inclusions.
• Choose a credible insurer who has a good track record in claim settlements versus an insurer providing you a cover with lesser premium and hence lesser coverage.
• Customers must read enough literature on home insurance and research on different product offerings from multiple insurance companies. Find the policy that best suits your needs.
• Policyholders must read through their policy document carefully and understand inclusions like coverage, features, and benefits but at the same time they must understand their exclusions as well which will help in a seamless claims experience