The devastating floods in the Northern parts of India have led to a surge in claims over vehicles and immovable property damages. If industry leaders are to be believed, the insurance companies are now facing higher payouts, causing increased financial liabilities and a re-evaluation of risk assessment in flood prone areas.Talking about the situation of the claims filed due to recent floods, Animesh Das, Chief Underwriting Officer, ACKO said that the company has witnessed approximately 15 percent increase in the claims in Delhi, Himachal, and Uttarakhand, while a further increase is expected as more individuals are yet to report their claims. In the event of heavy rainfall and flooding, there are frequent cases of engine damage due to water ingress, electrical system malfunctions, bodywork damage, and even complete vehicle write-offs. "In the standard comprehensive cover, if the car is totally damaged then the customer will get the IDV (Insured's declared value). Every year, the car value depreciates roughly by 10 percent and in case of impactful damage, the customer gets the claim amount minus the depreciation of the parts," he explained.

The insurance regulator, IRDAI has also urged general insurance companies and standalone health insurers to expedite processing of claims related to floods and activate their 24x7 dedicated helplines. Insurers have also been instructed to launch various awareness campaigns to highlight the actions taken. Bajaj Allianz General Insurance company (BAGIC) have also started to receive claim intimations – currently close to 350 – across motor, home, & property insurance. The claim intimations are primarily from Delhi, Punjab, and Himachal Pradesh.

Gaurav Arora - Chief - Underwriting & Claims Property & Casualty, ICICI Lombard shared that till date the company has received about 350 Claims in total between Property and Motor line of businesses. Claim settlement TAT for flood loss claims is around 12 to 15 days on an average from the date of vehicle reporting to garages. With our claims team mobilising on ground wherever the water has receded, we expect faster claim settlement timelines in most parts of affected areas. he added.

Taking cognizance of the devastating effects of flood and the resultant damage to human lives and livelihoods in Northern parts of India, HDFC ERGO General Insurance has also extend support to its customers by setting up a dedicated helpline and claims desk for the claims arising from the North India floods. So far the company has received 231 claims from the flood affected areas, out of which 23 are motor and property claims from Himachal Pradesh.

(The writer is Sheersh Kapoor.)

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