Tamil Nadu Finance Minister Thangam Thennarasu, on Friday, December 8, advised insurance companies to urgently provide claims for vehicles which were damaged during the recent floods in Chennai. As per a statement by the Tamil Nadu Government, representatives of 13 major insurance companies have informed that over 2,300 motor insurance claims for 600 bikes, 1,275 cars and 445 commercial vehicles have been received so far.
The Minister’s office is reported to have urged the insurance companies to act in a humane manner and quickly dispose of the insurance claims which they have received.
The Finance Minister is also reported to have asked the federation of motor vehicle sellers unions to ensure speedy repair of the vehicles which were damaged in the rain.
If your car has third-party insurance, it won’t cover the damage caused by floods. However, if you have comprehensive car insurance, it covers losses or damages caused by natural calamities such as floods, cyclones, and hailstorms.
If your car has been affected by the floods, broadly there are two kinds of damages that your car can suffer – damage to its engine and damage to its accessories. If the engine of your car is completely damaged, then it can cost you around Rs 1.5 lakh to repair it. Depending on the accessories that have been fitted on your car, the costs can vary and this can also be high. If you have car insurance, then it should pay for engine repairs as well as for upholstery. Insurance companies place natural disasters like floods and earthquakes under the ‘Acts of God’ clause.
An important point to be noted is that while the insurance covers unforeseen events, it doesn’t cover damages caused to the engine if you attempt starting a car that has been submerged. That said, every insurance provider has its own rules and guidelines. Some insurance providers will have an option of an add-on and in such cases, the comprehensive insurance will not cover the engine damage unless you have the add-on. In most cases, add-ons opted for a car vary, especially if the people live in places that are less likely to be flooded.
If your car has been impacted by the recent flooding, reach out to your insurer and follow the steps laid down to get your car repaired. Before you attempt to get the car repaired, it is advisable to read the guidelines and the terms and conditions laid down by the insurer.