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Old 8th August 2014, 08:40   #1
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Default No Insurance for car driven "carelessly" through floods

It is known fact that heavy monsoons cause water logging in a many cities in India however built with lots of planning. There's no respite from these conditions if your travel route has areas plagued with waterlogging but to travel on them. In such travel the engine is prone to water ingress and may fail to work either immediately or over a period of time. For that very reason most Insurance co offer engine protector as an add on package along with the Normal Insurance cover.

The Insurance co offering the various add on packages are as below.

Bajaj Allianz offers Engine Protector
Barati Axa Offers Hydrostatic Lock Cover
HDFC Ergo offers Engine and Gearbox protector
Future Generali offers Engine Protector
Tata AIG offers Engine Secure

All of the above talk of the same protection but in different words. Buying the above add on doesnt neccessarily guarantee the complete protection when driving through waterlogged areas. Most of the Insurance co in their exclusion clauses have mentioned that an alternate route to the waterlogged areas should always be preferred.

However Insurance co have a right to refuse the claim filed under engine seizure if the vehicle owner has driven the car through the waterlogged area knowingly. This amounts to carelessness on the part of the vehicle owner as per Insurance co and is liable for refusal of the claim. Check the link below.

http://articles.economictimes.indiat...consumer-forum

Mods: Searched the forum but couldnt find the related topic thread. If such a topic exists in any thread, kindly merge.
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Old 8th August 2014, 09:41   #2
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Default re: No Insurance for car driven "carelessly" through floods

For an immediate failure (Engine or GB) Insurance co may reject the claim stating above reason. For a failure after considerable period of time, how could they prove it?
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Old 8th August 2014, 09:53   #3
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I always dig deep regarding this issue when I take insurance for my cars. If you take the added cover in some insurance companies, they do cover this to the extent that your car got stuck in water clogged area. Getting stuck is somewhat accepted but the catch is, if your engine stops and you try to crank it again then they consider it as "intentional" damage caused to engine. They say the engine damage is aggravated by cranking it once halted.

To cover this, some companies like BMW offer additional protection which specifically mentions in their cover note that cranking the engine after getting stuck in a water clog does not void insurance. But I think it mentions no. of cranks allowed under this protection.

Insurance is something which should be chosen very carefully after reading their clauses and scope of coverage. Just going by the cheapest quote is stupid because the cheapest one you got might have the least IDV and no added cover at all. One should study this carefully when taking the insurance policy.

Last edited by Rudra Sen : 8th August 2014 at 10:22. Reason: Para spacing
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Old 8th August 2014, 11:57   #4
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Default re: No Insurance for car driven "carelessly" through floods

Quote:
Originally Posted by ajaypjayaraj View Post
To cover this, some companies like BMW offer additional protection which specifically mentions in their cover note that cranking the engine after getting stuck in a water clog does not void insurance. But I think it mentions no. of cranks allowed under this protection.
A similar cover is provided by Bajaj-Allianz (OEM Insurer of VW) called 'Drive-Assure' engine protection for VW cars. The engine is fully covered in that policy.

For example if the oil chamber hits somewhere and oil leaks out then only oil chamber is covered in normal insurance plan. If anyhow engine gets seized because of car was driven without oil or was cranked up without oil then the engine will not be covered in normal policy. But it will be covered if Drive-Assure engine protection cover was taken.

Now I am not sure what their clause is about the damages due to water-clogging. Because that falls in category of natural disaster and clause and scope of coverage varies in different plans of different companies.
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Old 8th August 2014, 13:29   #5
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Default re: No Insurance for car driven "carelessly" through floods

Quote:
Originally Posted by Mr.Boss View Post
For a failure after considerable period of time, how could they prove it?
They cant prove it unless the Surveyor is smart enough to identify the root cause of failue in association with feedback from the workshop. Here the main source of worry is the engine which IMO will exhibit signs of failure either during the waterlogging or immediately after that. Engine wont continue performing and stop after couple of days or more. Maybe other related failures will point out to the actual reason.

Quote:
Originally Posted by tbppjpr View Post
Now I am not sure what their clause is about the damages due to water-clogging. Because that falls in category of natural disaster and clause and scope of coverage varies in different plans of different companies.
For Insurance co, the engine failure can be due to mainly two reasons water ingress or loss of lubricant. Both the causes at the same time cant be a possibility. As seen in the HDFC Ergo add on pack wordings, it looks like you can continue to drive through water logged areas even if there is water ingress inside the engine.

Quote:
Covers consequential damages to the internal child parts of the engine and /or gearbox of the insured vehicle, arising out of :Water ingression, Leakage of lubricating oil and/or damage to engine and/or gearbox of the Insured Vehicle arising out of lubricating oil due to accidental means.
Key benefits: No worries of driving your vehicle through water logged area. Covers expenditure incurred due to damage to internal Engine and Gear box parts.

Conditions: The claim will be admitted under the own damage section of the policy
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Old 13th September 2014, 05:31   #6
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Default Re: No Insurance for car driven "carelessly" through floods

How about the recent floods in J&K? As per TOI, there might be higher claims than Uttarakand floods.

Source Link:http://timesofindia.indiatimes.com/b...w/42391332.cms

Quote:
CHENNAI: With the valley battling one of the worst floods in recent decades, general insurers are anticipating claims mostly from motor vehicles, shops and establishments and home inundated with water.

Bajaj Allianz which has a bancassurance partnership with the Jammu and Kashmir Bank is also monitoring the situation closely and expects auto loans to exceed losses on account of last year's floods in Uttarakhand. "We have a large number of insured assets that include motor as well as non motor. We anticipate the motor loss to be higher in J&K because the number of vehicles in the region is more as Srinagar is a big city when compared to Uttarakhand," Vijay Kumar, chief technical officer, motor insurance, Bajaj Allianz General Insurance said. The company recently set up a dedicated helpline to assist customer register claims.

"Going by reports of damage there will be an additional loss on the motor front during this quarter," G Srinivasan, chairman and managing director, New India Assurance said. He added that as the flood waters have not receded and communication facilities are yet claims have not yet been registered so far."

"The total losses in Uttarakhand were higher as the region is home to numerous industrial units and power plants," Srinivasan said. The company net loss (post reinsurance) due to the Uttarakhand floods stood at Rs 50 crore last fiscal.

Milind Kharat, chairman and managing director, United India Insurance also said that the losses on account of J&K floods were expected to be lesser than the Rs 850 crore company's losses in Uttarakhand floods last year. "While we anticipate more claims from J&K on account of the density of the population, but the average claim size would be lower as it's largely a tourist spot," Kharat said. He added that the company has readied seven surveyors to travel to the region to assess the loss once the water recedes.
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Old 2nd September 2019, 14:51   #7
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Default Re: No Insurance for car driven "carelessly" through floods

Bumping up an old thread to highlight an article from today's Hindustan Times:

Insurers must honour claims for vehicle damage on waterlogged streets

No Insurance for car driven "carelessly" through floods-ht-20190902.jpg

Quote:
If you look at a comprehensive motor insurance policy, you will see no reason why an insurance company should not pay for repair of a vehicle or its engine, damaged in a flood or a flooded road. The policy after all, covers loss due to several natural calamities including floods, cloud bursts, landslides, etc. However, if the water enters the engine causing a hydrostatic lock, the repair is expensive and so the insurance companies use an all-encompassing exclusion clause –consequential damage- to reject your claim. You are told that the engine damage is not caused from the flood or rain water, but from the driver of the car either driving fast through an inundated road or repeatedly trying to start a car stalled on an inundated road, resulting in the water entering the engine. Thus, the engine damage is a consequence of the consumer’s failure to safeguard the vehicle –a breach of the policy condition- and a consequential damage, not covered under the policy, you are informed.

However in Bharati Axa General Insurance Company V Chandra Mohan Goyal (RP No 4504 of 2014, decided on Feb 5, 2015 ), while dismissing the contention of the insurance company that the engine damage caused on account of hydrostatic lock was a consequential damage coming under the exclusion clause, the apex consumer court pointed out that the policy clearly said it covered floods, cyclone, hailstorm, etc. Thus a damage to the vehicle on account of hydrostatic lock caused due to flooding of the roads, would also be covered for reimbursement. Besides, the policy did not exclude hydrostatic lock. So in the absence of such an exclusion clause, the insurer had to pay for the damage caused by heavy rains and flooding, the National Consumer Disputes Redressal Commission said.

The Insurance Ombudsmen too have similarly dismissed the argument of the insurance companies that they will not pay for engine damage caused as a result of flooding of roads,. In Shri JItendra Kumar Vs Iffco Tokio General Insurance Company Ltd (Award dated 21-12-2017), for example, the insurer argued that the engine damage was a result of the ‘mishandling and using the vehicle after the damage due to rain water’ and so it was a consequential loss not covered under the policy. However, the Ombudsman held that the engine damage was due to flood water , covered under the policy.

If the insurers want to reduce their burden on paying for hydrostatic lock, they must educate consumer about the ‘do’s and dont’s ‘ of driving on a flooded road. In fact they must give a written note about this to every policyholder. They also have an obligation under the Insurance Regulatory and Development Authority (Protection of Policy Holders’ Interests )Regulation, to explain to the consumer, ‘clearly and explicitly’, the policy conditions, including the exclusion clauses, It is also important to remove ambiguities in the policy and be more specific, be it in respect of the what the policy covers or does not cover.
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