Insurers could gear up to serve car- owners facing rain damage risk
On the night of August 14, Bengaluru received 128.7 mm of rainfall, the highest in a day since 1890, according to data from the Met department. With Mother Nature continuing to unlesh her fury on succeeding days, causing much havoc for life, property and infrastructure in the city, automobiles -- prized possessions of citizens -- have seen much damage, with owners rushing to claim insurance.
With rain-related damage to automobiles becoming commonplace, owing to nonstop urbanisation and lack of efficient infrastructure, especially drainage systems, a new risk factor is likely to get added into the vehicle insurance gamut.
According to PriceWater House Partner Abdul Majeed, “After the Chennai floods, insurance companies are looking at this as a major risk factor, as incessant rain has become a major issue across different cities and states. Cities aren’t geared up with efficient drainage systems, and some pockets get affected by rain. Going forward, one cannot exactly say how the risk can be assessed, because you cannot blindly increase insurance premium across the board. For instance, if you are staying in an area which is frequently inundated during rains, then insurers might possibly start considering these issues.”
Currently, car insurance covers engine, battery, and transmission, among other important systems, and exteriors are seldom covered in a big way. Also, insurance compensation for two-wheelers is not as much, as in the case of cars.
Meanwhile, insurance companies in Bengaluru are gearing up for an upsurge in car owners making a beeline for claims, but have said it is too early to state anything.”The rains have just hit the city, and the actual damage is slowly becoming apparent. It would take over a week to expect anything from customers, be it enquiries, or let alone applications for claims,”a spokesperson for a leading insurance company told DH.
DH News Service