Dear Chennai, don't crank your car engine in water; your insurance claim may be declined

Chennai has been dealing with the havoc caused by the worst rainfall the city has seen in nearly a century. Several localities were submerged underwater, right up to the first floors of certain buildings, and cars were seen floating around, completely immersed in water. Even at other places, people have been stuck, with their cars breaking down on the water-logged roads. 

However, there's something important to remember if you want to make sure you're eligible to claim insurance for the damage caused to your cars. 

Early this year, during the Monsoons, insurer ICICI Lombard General Insurance had advised its customers via SMS: "Avoid driving in water-logged area. Do not try to crank/push start the engine of a submerged vehicle as even one attempt can lead to serious engine damage." 

It was not the only insurance company to do so. "Whenever there are predictions of heavy rains or storms which could lead to a flood-like situation, we increase our efforts to reach out to the customers of that region to help them minimize their losses. As a practice, we send out advisories to customers and the general public every year via SMS, FM radio, brochures or through channel partners during the monsoon," Vijay Kumar, chief technical officer, motor insurance, Bajaj Allianz General Insurance had said.

These advisories are to restrict the claims ratio, which shoot up as a result of water-logging or building and tree collapses, which are a fallout of the monsoons. "The claims ratio for passenger cars shoots up by 15 to 20% during this period," reveals Kumar.

Suggestions

If stuck in water, drive the vehicle in either first or second gear and increase the engine RPM without the clutch. When you are in flooded areas, do not crank the engine even after the water recedes. It is advisable to get the car towed to a workshop. One should disconnect the battery. At the workshop, rust-proof the car and get it re-oiled when possible.

"Check the brakes for thorough functionality as it can be affected if the flood water enters the brake lines, pads or discs. Ensure it is functioning satisfactorily before moving the car further. Check the radiator fan motor for thorough functionality as there is a possibility of its damage due to flood water," states Bharti AXA General Insurance in its insurance advisory.

"If water has entered the passenger compartment, do not turn the ignition "ON" as there is possibility of short circuit in the electrical system the moment ignition is turned "ON" even without cranking of the engine. This may cause further damage to the vehicle," says Sanjay Kumar, vice-president and head, motor – underwriting at Bharti AXA General Insurance, who also advises car owners to keep a hammer or stone ready to break the window glasses in case the door locks get jammed.

Inspite of the dos and don'ts list doing the rounds year after year, hydrostatic lock, wherein water enters the engine and stalls it is the most common car damage, filed for claims during the monsoon claim insurers. "Other common claims include fender benders, vehicle damage due to lower visibility and vehicle skidding," says Kumar of Bharti AXA General Insurance.

Trees falling on cars and damaging them is also under motor insurance, says insurers.

Claim declined

"If we find cases wherein a policyholder deliberately drove the car in water-logged areas, there are chances that his/her claim might get declined," warns Kumar of Bajaj Allianz General Insurance. Cranking the engine after it has stalled due to water entering it too can lead to rejection of claim, he adds.

But doesn't mean the insurance companies would reject each and every claim arising during floods. "Beyond a level, we ensure all genuine claims are cleared at the earliest. Further, our claims resolution period is just 5.1 days as compared with the industry average of 8.9 days," Kumar of Bharti AXA General Insurance had told dna earlier this year.

Though the engine damage would not be paid for if deliberately damaged, but the other damage caused to the upholstery, or fuel parts failing due to floods will be covered.

Add-ons to consider

If you have been wading through flooded waters year after year, then the standard car insurance policy would not suffice. Insurers offer several additional covers that can be tagged onto your existing policies. Ahead of the monsoons or during renewals you can consider the add-on cover 24x7 road-side assistance, where towing the vehicle stuck in flooded waters or accident site to a garage is covered under the insurance policy.

"The 24x7 spot assistance cover offers mechanical assistance and benefits ranging from that for a flat tyre to minor repairs, towing assistance and even assistance such as medical coordination and legal advice, if required," elaborates Kumar of Bajaj Allianz.

In a zero depreciation cover, the age of the vehicle would not affect the claim amount paid for spare parts. "Typically under any comprehensive policy in case of a claim the insured receives an amount that is subject to depreciation. He/she therefore receives an amount lower than the actual repair expense. With depreciation cover the insured receives the depreciation amount deducted on the value of the parts replaced for upto two admissible claims," Kumar of Bharti AXA General said.

Another add-on offered is engine protector. One can opt for this cover only when you have high-end vehicles, else it is an avoidable expense.

Avoid free insurance

Insurance policies bundled with the car purchase at dealership may offer limited option in terms of selecting riders and avoiding unnecessary add-on covers. Instead, you can decline the free insurance offered by the car dealer and bargain for an additional discount to the extent of the premium on your total car cost. Later purchase an insurance cover keeping in view your needs.

Avoid making paltry damage claims under insurance as it would strip you off the no-claims bonus advantage, wherein a customer can get as much as 50% discount on insurance premium.

(From dna archives, updated)