Vehicle Insurance Claim in Case of Floods - Do Not Start the Engine: Facts

Story:

Guys in Chennai who has their vehicle submerged in water, as per insurance agency rules and regulations, u must not start the engine once your car or bike is submerged by flood. If you did so, your insurance will become void and you cannot claim them. So if it’s flooded, first call insurance agent to show the car and the way it is flooded. Once the insurer confirms to proceed you need to take it to a mechanic and proceed further. Never start the engine by yourself!! Or you void your insurance!!! Don’t loose your vehicle insurance claim.
Please forward to all your friends and family!!!

Other Versions

#ChennaiFloods If vehicle submerged n water, as per insurance agency rules and regulations, u must not start the engine once submerged.

Picture about Vehicle Insurance Claim in Case of Floods - Do Not Start the Engine — Vehicle Insurance Claim in Case of Floods – Do Not Start the Engine

Analysis:

Many stories shared widely through social media sites suggest the flood-hit victims of Tamil Nadu not to start the engines of their cars and vehicles, saying doing so will decline their Insurance claim. The claims are facts, but do not give complete information.

As a general advise, when your vehicle is stuck in water, it is better to drive either in first or second gear and increase the engine RPM without the clutch. When a vehicle is submerged in water, as it happened in many cases in flood hit areas of Chennai in late 2015, there will be two aspects of concern – one, the safety of the vehicle and the driver, and two, keeping the vehicle eligible for Insurance claim. As Sanjay Kumar, the vice-president and head, motor – underwriting at Bharti AXA General Insurance explains, when water has entered the passenger compartment of vehicle, one should not turn the ignition “ON,” because there will be possibility of short circuit in the electrical system the moment ignition is turned “ON” even without cranking of the engine. Also, after the water recedes, it is advisable not to crank the engine. A senior United India Insurance official explains the norms that owner should first inform the insurance company about his vehicle being submerged and then the company would send an official to estimate the damages. He also adds that vehicle owners may also approach workshops, which may tow the vehicles.

Insurance companies maintain these norms because hydrostatic lock, wherein water enters the engine and stalls it, is the most common car damage filed for claims during the monsoons. To reduce their claims ratio in monsoon season, insurance companies also alert consumers with many such advisory messages. “If we find cases wherein a policyholder deliberately drove the car in water-logged areas, there are chances that his/her claim might get declined,” warns Kumar of Bajaj Allianz General Insurance. Cranking the engine after it has stalled due to water entering it too can lead to rejection of claim, he adds.

So if your motor vehicle is submerged in the flood, and you want to make sure you are eligible to claim insurance for the damage caused, it is better to alert your insurance company or workshop first, because any attempt to kick-start it may cause you to lose your claim under the Comprehensive Insurance Policy for Vehicles. Note that most Insurance Companies have this condition, but the Terms and Conditions given by your insurer will be the judging factor.