Know how motor insurance policy covers damage during riots?

Riots are unpredictable incidents that may arrive without notifying which can awfully damage your vehicle. In such a situation, you can immediately file a claim for compensation by intimating your insurer. It could lead to various damages to your vehicle body, engine, windshield. Your vehicle may get damaged due to burning, stone-pelting, or malicious acts.

Moreover, Neeraj Prakash, Managing Director, Shriram General Insurance, said “The insurance company will also pay for the death of or bodily injury to any person including occupants present/carried in your vehicle or damages to property other than property belonging to you.”

Riot claims are paid under the comprehensive insurance policy

In the case of riots if someone owns a comprehensive insurance policy, then only the claim is payable. A comprehensive insurance policy comprises ‘Own damage (OD) cover’ and third-party insurance cover. The damage to the vehicle due to the riots is covered under OD section if a policyholder has a comprehensive insurance policy. The third party insurance policy is a mandatory cover that works to protect you from claims made by a third party. The TP covers legal liability for bodily injury, death, and damage to third party property while using a vehicle.

How much of a claim is settled in case of damage to your car in riots?

A motor insurance policy document contains the details of coverage, exclusions, and exceptions as per the terms and conditions. However, any deliberate action by the policyholder to cause vehicle damage is not covered under the policy and hence, the claim is not payable. “The claim will be honored if the damage to your insured vehicle happened accidentally due to riots and is not deliberately inflicted. If found otherwise, the insurance company will not make any payments for such a claim,” Prakash said.

Process of intimation of losses and claim settlement 

In case of injury to your vehicle during riots, you should immediately notify your insurer about the damage that happened. Fortunately, there is a provision for condoning the delay of intimation. So, if you forgot to convey the injury to your body, you can be intimate later. They take a certain time to take the situation into account and allow filing claims.

Prakash said that the clause requiring immediate intimation of the damage to the insurer does not work in isolation and is not absolute. He said, “It is true that the owner has to intimate the insurer immediately after the damage to/loss/ theft of the vehicle. However, this condition should not bar settlement of genuine claims, particularly when the delay in intimation or submission of documents is due to unavoidable circumstances. However, consideration of delay depends upon the merits of the individual case.” 

Prakash further explains:

“Based on the verdict of the Supreme Court, the Insurance Regulatory and Development Authority of India (IRDAI) had published a Circular dated September 20, 2011, whereby it stated that insurer’s decision to reject a claim shall be based on sound logic and valid grounds. It also stated that rejection of claims on purely technical grounds in a mechanical fashion will result in policyholders losing confidence in the insurance industry giving rise to excessive litigation. The Insurers shall not repudiate such claims unless and until the reasons of delay are specifically ascertained and recorded.”

How to initiate the claim process, documents required

You need to register a claim with your insurer by calling its customer care/toll-free number. If the vehicle is at the spot, a spot survey has to be done and if the vehicle has been moved from the spot it has to be taken to the workshop for the final survey.

 

Prakash said that in case of claims arising due to riots following documents help in getting the claim settled:

  •  Duly filled claim form
  • Copy of insurance policy
  • First Information Report/Final Investigation Report
  • Fire Brigade Report, if called for
  • Survey/Assessment Report to substantiate a quantum of loss due to damage to an insured vehicle
  • Original Bills of Repairs/Replacement
  • Newspaper cutting wherein the incidence of riots has been reported

News Source: Economic Times