How to file your insurance policy claims?
By Mr. P Saravanan, IIM Shillong
Globally, the occurrence of natural disasters is
increasing.
A natural disaster is defined as a major adverse
event arising out of natural processes of the earth.
Natural disasters are often called ‘act of God’.
As the losses owing to these risks can not be
borne by individuals, it is shifted to insurance companies by paying a premium.
Insurance firms cover up the losses to the
insured.
What is covered?
In India, insurance against natural calamities is
not a standalone policy but it comes as an in-built coverage with home and
automobiles insurance policies.
These policies have coverage against disasters
like
1.Fire,
2. Earthquake,
3. Lightning,
4. Cyclone,
5. Floods,
6. Landslide,
7. Tornado,
8. Hurricane,
9. Falling of trees and
10. Explosion.
In western countries, flood insurance &
earthquake insurance are not covered even in the comprehensive coverage &
they should be purchased separately.
It is important to read the fine print of the
policy documents to examine what are the items have been included and excluded.
If you feel that some adverse events such as
terrorism, damages owing to nuclear, radioactive and toxic explosives which
need to be incorporated, talk to the insurance company and get it included.
This may increase the premium amount, but it will
provide you an exhaustive and complete coverage.
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| P Saravanan, IIM Shillong |
Similarly, most home insurance policies do not
automatically cover a business that is located in the home.
In case, if you have a home business, make sure
that you obtain property insurance for your home as well your business.
One can also take additional coverage for
business equipment or / inventory that you keep in your home.
How to file your claims?
It is the responsibility of the insured to take
care of the item which is covered under
insurance.
Accident under the
1. Influence of alcohol or /
2. Wrong side driving,
3. Driving without license you will not get any
insurance claim.
However,
if the vehicle got damaged owing to natural disaster for instance rain or /
flood one can definitely claim insurance.
As technology is advanced to a greater extent one
can take a photo of the vehicle which is damaged & file a claim through
mail to the insurance company stating the date & time indicating the policy
number.
Some companies encourage policy holders to fill
up the claim form online. While filing for online claims, one needs to enter
appropriate details for easy evaluation of the claim.
On receipt
of mail or online complaint, the insurance company will arrange a surveyor who
will visit your place to assess the damages to the vehicle or home.
No-claim scenarios..!
In case of motor insurance, if the vehicle is
damaged owing to flood or rain and if the insured makes an attempt to start the
engine & thereby the engine seizes, then the insurance company will not
admit the claim.
The insurance company will admit events which are
unexpected, whereas if you start the vehicle, it becomes a planned event. There
is a myth that if you have parked the vehicle outside the premises, insurance
claim is not admissible, which is not true.
How much one will get..?
The claims process will be difficult if the
policy documents are not available. For instance, in the recent Chennai deluge,
items such as certificates, domestic appliances, jewellery, cash and insurance
policies were reported as washed away.
In such scenarios, the surveyor depends on other
documentary evidence of existence or / ownership like the copy of the sale deed
in case of property or physical evidence at the scene to assess the loss.
Cases where the house or vehicle has been
completely washed away will come under complete loss and full sum insured will
be admissible. Else, surveyor will put the case under partial loss and one will
get refund for repair and reinstatement.
Regular deductibles will apply as in case of
items such as jewellery & domestic appliances, which is normally up to 20%
of the sum insured.
Know whom to contact..!
Majority of the insurance companies issue the
policy on a single sheet wherein they might not have mentioned to whom one
should approach in case risk happens.
It is essential at the time of taking an
insurance policy to obtain the details of surveyors and other relevant
officials.
Some insurance companies may scare you by stating
that you will lose out on the bonus if you make a claim.
Do not heed to the same in case if you file for a
claim against a natural disaster.
About the author..
The writer P Saravanan is associate professor of
finance & accounting in IIM, Shillong.
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