Steps to ensure your car insurance claim is honoured

There can be several reasons to claim damages for your vehicle out of which some can be when your car meets with an accident or it may get damaged due to natural calamity, etc. In such cases, the first and foremost requirement is to have the ownership of a comprehensive motor insurance policy. It is only then that one can make claims for situations like the car getting washed away or there is damage to the engine in case something happens due to natural calamity.

However, there can be typical reasons of claim rejection like drunk driving, lapsed policy, commercial usage of private car etc., a car insurance claim can be rejected in specific cases even after the damages have happened due to natural calamity like floods.

“Damages due to natural calamity are covered in motor Insurance package policy but there is a specific case where if the vehicle is submerged in the flooded area, and the user tries to ignite the engine then it leads to engine ceasing and permanent damage. Such a scenario is not considered as impact damage to the vehicle, and it is rejected by the Insurers,” said Animesh Das, Head of Product Strategy, ACKO General Insurance.

Moreover, not only these, there are other circumstances in which the insurer rejects the claims, they are:

-- Consequential loss or damage which is a result of insured’s actions (whether intentional or by accident) and not an outcome of an event is not covered. The most common case being engine damage due to hydrostatic loss. This is because the damage did not happen because of flooding but because the car was cranked up in a water-logged area. It could be a mistake, an intentional act or an action taken in an emergency situation, however, it won’t be covered by the insurer as the risk was not covered.

-- Depreciation on plastic parts, tyre/rubber parts etc. will not be covered by the insurance company but if the insured has purchased a zero-depreciation add-on, which covers such damages, then the insurance company will pay.

-- Damage to electrical accessories in the vehicle will not be covered unless electrical accessories value has been added to the coverage while taking the policy.

-- Damage to the engine from driving through a water-logged area unless covered by an engine protector add-on.

-- Delay in filing the claim or getting the damages repaired before filing the claim also results in claim rejection.

Apart from knowing these claim rejection scenario, one should also know that there are certain direct exclusions and exceptions mentioned in the policy document.

Exclusions and Exceptions in the policy

The insurance companies mention their exclusions and exceptions in their policy document under the terms and conditions. These are:

--Depreciation in the value of the car due to ageing
--Wear and tear of the vehicle
--Electrical or Mechanical breakdown
--Damage caused to the vehicle by a person who is driving it without a valid license
--Damage caused due to driving the vehicle under the influence of alcohol, drugs, narcotic substances or other banned substances
--Damage to tyres and tubes. However, if the vehicle is damaged at the same time, the liability of the company will be limited to 50% of the replacement cost

--Loss/damage to the car caused by war, mutiny or nuclear risk

Preventive Measures

A car owner should avoid igniting/cranking engine if the vehicle is submerged in a flooded area. The vehicle should be towed to the nearest garage for a check-up. Also, car owners can consider buying "Engine Protect or Hydrostatic Lock Cover" add-on at the time of purchase of the policy. This add-on covers engine ceasing due to waterlogging.

Devendra Rane - Founder & CTO, Coverfox.com said that the best precaution one can take is to ensure that their policy is active. “In order to provide complete coverage, one must attach additional add-on covers to their comprehensive car insurance policy like Engine Protector, Return to Invoice, zero depreciation, accessories cover and so on. This could provide overall protection even in the situations discussed above,” he said.

If you have a comprehensive insurance coverage covering natural calamities, then you should take certain important measures on time. Tarun Mathur, Chief Business Officer, General Insurance, Policybazaar.com said that one should not delay informing the insurance company about the damage caused to your car during the natural calamity as the insurance company appoints a surveyor to monitor the damage and during natural calamities, there is a chance of a number of claims and you would not want to delay your claim process.  Keep the insurance papers ready and handy along with the evidence.

“It is important to document the damage(s) caused by the natural calamity to your car before doing the clean-up. Take pictures of your car from every possible angle to capture the damage including both interior and exterior capturing engine and trunk also,” he added further.