India as a nation has over the years greatly improved its approach towards tackling and mitigating the damage caused by natural calamities. The most conspicuous change has been the increased use of technology in risk assessment and adoption of appropriate avoidance / mitigating measures. The recent cyclone “HudHud” is a classic example of how technology helped in early detection of a natural catastrophe. The findings pertaining to the cyclone were then effectively used to prepare both people and the relevant authorities for preventive action.
While large strides have been taken in the direction of better on-ground management; minimizing the impact of financial losses for victims is yet to be addressed completely. In other words, basic benefits of insurance continue to elude a large chunk of our population. Insuring of valuable possessions like homes, cars etc. against floods, cyclone, storms and other natural calamities can contribute to the financial resilience of victims immensely. The trauma and distress that people undergo during such incidences can certainly not be compensated for but insurance can provide much needed financial relief to the victims through monetary compensation for damaged property and assets.
Apart from financial relief, the insurance sector plays a consistent role in inculcating a culture of safety by constantly educating consumers on methods to cope with unforeseen circumstances.
Despite a string of natural catastrophes India has faced, (the latest being HudHud) and the massive damage to property and assets, very few have insured their material possessions. The insurance industry provides a range of offerings which help to ameliorate any loss during the course of such trying times. Bharti AXA General Insurance shares some important pointers that could be considered while opting for vehicle and home insurance that are particularly useful in the wake of natural calamities.
MOTOR INSURANCE
While most people have a comprehensive insurance policy to cater to their bank’s stipulation for such coverage, not many people know that motor insurance products today come with add-ons and useful benefits that meet specific needs in times of disaster, all for a nominal increase in premium.
- Hydrostatic Cover– If the vehicle is caught up in a flooded area and there is an inadvertent attempt to continue driving / starting the car, there is every possibility of water ingress to internal engine parts and consequent engine seizure. Such damage would not be payable under an ordinary comprehensive policy as this would be considered an extension of loss. Availing Hydrostatic Lock Cover, would extend insurance cover for such eventuality.
- Road Side Assistance– A common sight during the cyclone / monsoon season is of vehicles getting stranded on a road following a flood / stagnation of water. It may not be advisable to the customer to crank the engine as this may lead to ingression of water into engine and consequent damage to the engine itself. Road Side Assistance Product provides the comfort to the customer, where insurance company’s vendors would tow the vehicle to the nearest garage.
Recommended tips:
While Insurance looks at compensation post the disaster, there are certain pro-active steps that individuals themselves can take to mitigate and even avoid damages –
- During lightning, stay in the vehicle with windows closed, avoid touching metal parts of the vehicle and do not see the lightning with naked eye
- Keep yourself updated of the latest reports regarding progress of the cyclone.
- Do not stay in a Vehicle, if possible run to a nearby solid structure (Building/Shelter)
- Avoid parking on slopes and always park with handbrakes on
- Beware of the downed power lines that may be touching your car
- Avoid driving cars during heavy rains or through flooded water as it can damage the engine and other internal components.
- Drive the vehicle at a very cautious speed to avoid the engine from stalling
- Check the brakes and radiator fans for thorough functionality
- Should the vehicle stop, avoid cranking as it may damage the system
- Do not keep the AC on in stagnant water as it may increase the splash of water
- Avoid closing doors with central locking
- If the water level has risen up to the passenger compartment, do not turn the ignition on.
HOME INSURANCE:
Most individuals are ignorant of the various insurance offerings available in respect of not just residential building but also the contents. Home insurance package policies are designed to take care of all possible exposures that the individuals could face. These package policies offer cover in respect of damage to residential buildings not only due to fire and allied perils but also flood, storm (such as Hudhud), earthquake etc. Even the contents in the building are fully protected from loss due to these referred perils/causes. Apart from the above, the package policies cover a host of other substantial losses. They include loss of jewellery whilst travelling anywhere in India and whilst being worn on one’s person, breakdown risk in respect of domestic appliances such as refrigerator, TV, AC etc. Other important inclusions are Personal Accident cover for the entire family, loss of rent, additional rent for alternate accommodation incurred following damage to residential building, additional expenses incurred to obtain duplicates in the event of loss of documents such as title deeds and passport due to specified perils, damage to house hold items due to road accident whilst being transported to new premises within India, pedigree pets and legal liability to domestic servants and third parties.
In case one does not want to go for the comprehensive package cover, the person may opt for a Standard Fire & Special Perils policy. This policy covers losses due to fire and allied perils apart from storm/flood as well. This policy is available not only for residential buildings but also for shops, offices, hotels, industries, and manufacturing establishments. There is also a choice of deletion of certain inbuilt covers from the policy and a consequent discount in premium. However, customers, unmindful of their exact exposure, sometimes opt out of this cover just to save a small amount on premium but end up falling prey to extensive loss in the unfortunate event of a calamity. The biggest advantage of going for a Standard Fire policy cover is that it covers losses caused by storm, even in the absence of a flood.
Recommended tips:
While Insurance looks at compensation post the disaster, there are certain pro-active steps that individuals themselves can take to mitigate and even avoid damages –
1) Know the HFL (High Flood Level) height for your area.
2) If your home/office is on the lowest floor, and this happens to be below the HFL, then the entire house would need to be elevated to be above the HFL height.
3) Use water-resistant building materials in areas below HFL.
4) Prevent sewer lines from backing up by installing backflow valves or standpipes.
5) Raise your washer, dryer and other equipment such as water heaters, oil tanks, furnace and electrical wiring on concrete blocks such that they are above the High Flood Level height. If you are unable to raise a particular item, then anchor it and protect it with a floodwall or shield.
6) Install and maintain a sump pump system if you have below-grade floors
7) Landscape with native plants and vegetation that resist soil erosion
8) Become familiar with your community’s disaster preparedness plans and create a family plan. Identify escape routes from your home/office and neighborhood and designate an emergency meeting place for your family/employees to reunite if you become separated. Identify a Point of Contact to communicate with concerned relatives
9) Put together an emergency kit that includes a 3-day supply of drinking water and food you don’t have to refrigerate or cook; first aid supplies; flashlight; work gloves; emergency cooking equipment; portable lanterns; fresh batteries for each piece of equipment; clothing; blankets; baby items; prescription medications; extra car and house keys; extra eyeglasses; important documents, including insurance policies.
Author
Mr. Rajagopal Gopalan
Senior Vice President & Head, Operations and Claims.
Bharti AXA General Insurance
