Display Blog Content

Royal Sundaram answers Mumbaikars Flood-Related queries on Motor Insurance Cover

08 October, 2005

The torrential rains on July 26 or `Terrible Tuesday'''' and throughout the week thereafter brought life to a standstill in Mumbai. The aftermath of the rains has seen the general insurance companies in India receive mounting motor insurance cover claims from all quarters of the beleaguered city.

Royal Sundaram's comprehensive motorcar insurance package is designed to cover a motorcar in any situation - theft, earthquake, fire, flood, landslide, riot and strike.

In Mumbai, claims intimations are being received on a toll-free number (1600 345 8899) and a unique Royal Sundaram Customer Service number (9444 44 8899), as well as through Royal Sundaram''''s Agents and Distribution Partners. The Company has set up a quick response team, headed by a Senior Vice President, at Mumbai, which receives the intimation, appoints surveyors wherever required, and makes immediate decisions to settle the claims. Additional surveyors have been deployed for speedy service. Royal Sundaram is contacting motor vehicle owners for shifting the vehicles to selected garages for immediate repairs and get the customers car back on the road in no time.
In light of the numerous queries that have been received and to assist customers to better understand its motor policy, Royal Sundaram, has prepared a document in response to the questions most frequently asked by customers:

1. Whether Flood is covered in the Motor Policy?
The Standard Motor Package policy covers flood as well as Inundation.Damage to the car is covered due to flood as well as overflow of water.

Inundation Rising of body of water and it is overflowing on to normally dry land.

2. I parked my vehicle at my house. Due to water logging, water had entered into my vehicle and damaged many parts? Whether such losses will be viewed as Flood?
Damage to the car due to water logging is covered. The loss is due to inundation and the same is also covered under the policy.

3. Can the Flood / Inundation cover be excluded from the Motor Policy?
The same is in-built as a standard cover in a package policy and cannot be excluded.

4. My vehicle was in water for 2 days. I do not know whether there is any damage?
In such a case, please do not use the car before it is inspected. The engine should not be started (or operate any other part including horn, tape recorder etc.,) till the vehicle is checked / repaired for any possible damages by an authorized repairer.

5. My car partially submerged in water during the rainy days. Now I confirm that there is no water in and around the car. The vehicle is fully dried. Can I try starting the vehicle?
No. You may see the vehicle externally and find it okay. But the water would have entered the engine (or any other part) and mixed with the oil or fuel. Attempt to start may cause damage or aggravate a damage.
As per policy condition any aggravation of damage before necessary repairs is not payable.

6. How to find out an authorized dealer
You can get in touch with the dealer from where you have purchased the vehicle or ref. the owners manual for the authorized dealer list or get in touch Royal Sundaram for assistance in this regard. You can also reach Royal Sundaram through `Toll Free No.(1600 345 8899).

7. Can I repair the vehicle anywhere, as I like?
That will be as per your choice and the company will bear reasonable cost of repairs. However it is suggested to carry out checks and repairs at a repairer shop that is duly authorized by the manufacturer of the vehicle.

8. You say I should not start the vehicle? Who will shift my car to the workshop?
You can inform the repairer. Repairer has all facilities and they will arrange to shift the vehicle.

You can also reach Royal Sundaram through Toll Free No. (1600 345 8899). The company will also Support / facilitate / arrange for the same as the case may be.

9. How long the process of insurance claim will take?
As soon as your vehicle reaches the workshop, you can inform the insurance company and arrange to submit a claim form and the RC Book (for verification & return)

If the workshop is having a tie up with our company, they themselves will inform us as soon as your vehicle reaches the workshop. On getting the intimation, the company will send a surveyor for assessing the loss, discuss with the repairer and after policy confirmation, the repairs will be authorized.

10. How soon will the insurance survey be carried out?
Normally the surveyor will reach with in 4 working hours. In this situation, at the maximum, the same will be carried out during the same day or next day morning.

On getting the intimation, the company sends a surveyor to assess the loss, discuss with the repairer and after policy confirmation, the repairs are authorised. As there were many damaged cars this time round, additional surveyors were deployed for speedy service. Normally, the surveyor reaches within four working hours and the survey is carried out on the same day or the next day in the morning.
Are you operating under cover?

11. Will the insurance company pay the complete cost of repairs?
Any claim will be subject to deduction of depreciation and deductible (excess) as per the policy. Reasonable labor charges as assessed will be paid in full and assessed replacement of parts will be subject to the depreciation as per the policy.

12. Will the company pay for oil etc.?
Yes, you will get indemnified for all damages, which includes oil, coolant and other lubricants subject to depreciation.

13. Will 50 per cent be deducted as depreciation for Bearings, speedometer ECMs, shock absorbers and motorized Headlamp?
Any claim will be subject to deduction of depreciation as per the provisions of the policy. The depreciation for such parts is to be determined based on the age of the vehicle.

14. When will I need to bear 50 per cent of the parts?
Only for replacements of nylon, rubber plastic parts, tyres, tubes and batteries.

15. If there is damage to the engine due to water entry, whether the same will be paid under insurance?
Yes, so long as the damage is not due to aggravation as mentioned above.

16. In the market we heard that, the insurance companies would pay only 50 per cent for all the engine parts?
The depreciation for such parts is also to be determined based on the age of the vehicle.

17. Will I get replacement of seats, seat covers, carpets and mats?
If the same is damaged due to floods and the condition is beyond usage, the same will be considered subject to applicable percentage of depreciation. Items those are fitted separately will be considered only if the same is covered as accessory under the policy.

18. Who will give the warranty for repairs?
The repairer who has carried out the repairs will have to give the warranty.

19. Will I need to pay the cost of repairs completely and follow up with you for settlement?
Not necessarily in all cases. We have arrangement for cash less facility with select dealers and repairers. If the facility is extended, then you can take delivery of vehicle by paying the deductible (excess) and depreciation. The balance of the assessed repair cost will be paid directly to the repairer.

20. Will I lose my No Claim Bonus for making a claim for a flood loss?
Yes. The Bonus will be withdrawn for any own damage claim.

Note to Editors:

Royal Sundaram Alliance Insurance Limited is a joint venture between Sundaram Finance and Royal & SunAlliance, where the latter holds 26 per cent of the venture in accordance with IRDA regulations. It was the first Non-Life Insurer to be awarded a licence by IRDA.

For further information:

Saradamani Dey
Royal Sundaram Alliance Insurance Company Ltd.