Nature is unpredictable. Take the recent Cyclone Biparjoy, for example. The occurrence of such cyclones puts a lot of things at risk, including homes and cars. The post-repair costs, in these cases, can be high. But the good news is if individuals have comprehensive insurance, they need not worry too much about expenses.
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Scope of insurance
Natural disasters like cyclones usually come under the "Act of God" and experts suggest individuals have comprehensive home and motor insurance policies for protection against them.
Home insurance policies have been standardised by the Insurance Regulatory Development and Authority of India (IRDAI) where consumers can take protection against fire, lightning and flooding. There are typically three types of home insurance policies: one that covers the contents of the house, one that covers the building, and one that covers the building as well as its contents (personal belongings in the house such as furniture and electronic goods).
Under a comprehensive home insurance policy, though the insurer will not pay for the regular wear and tear of the house, it will certainly pay for any damage caused by natural calamities including floods, earthquakes, cyclones, etc.
Here's a list of all insurance companies offering home insurance in India along with coverage and benefits:
| Insurance policy | Coverage |
| Bajaj Allianz Home Insurance | Fire and allied perilsLoss of documentsHome burglaryIn-transit loss or damage to household goodsPersonal accident coverLoss of rentCoverage for pedigree petsAlternate accommodation expensesLoss of baggageThird-party and employee liabilities |
| Bharti Axa Home Insurance | Fire and allied perilsLoss of documentsHome burglaryIn-transit loss or damage to household goodsPersonal accident coverLoss of rentCoverage for pedigree petsAlternate accommodation expensesLoss of baggageThird-party and employee liabilities |
| Cholamandalam Home Insurance | Fire and allied perilsAll risk cover for jewelleryBurglary and housebreakingBreakdown of home appliances and home utilityLoss/damage to personal baggageDamages to fixed plate glassPersonal accident coverTemporary/total permanent relocationCoverage for pet animalsGarden coverEducation benefitEmployee benefit |
| Future Generali Home Insurance | Fire and allied perilsProtection of jewellery/valuablesBurglary/housebreaking/theftBreakdown of a portable computerProtection of household electrical/mechanical equipmentProtection of electronic equipmentTenants legal liabilityPersonal accident coverDomestic workmen compensationEnhanced protection coversPublic liabilityVeterinary costsHome loan EMI |
| National Insurance Home policy | Fire and allied perilsJewellery/valuablesBurglaryPlate glassTV setsBreakage of domestic appliancesPedal cyclesPersonal accident coverBaggage loss |
(Source: Policybazaar website)
On the other hand, comprehensive car insurance covers losses or damages caused to cars by natural calamities, such as floods, cyclones and hailstorms. In this, the amount insurers pay depends on the age of the car and the car’s insurance-declared value. All companies, except a few, cover add-ons for five years, while some offer 10 years.
Few other add-ons that may help
An ‘engine protection add on
According to Kunal Jha, Head of Motor Product and Actuarial, Digit Insurance, individuals who live in areas prone to waterlogging or floods should make sure they have an ‘engine protection’ add-on under the comprehensive motor insurance plan.
“Water can enter the vehicle's engine and make it prone to damage. The engine is one of the most expensive parts and replacing or repairing can be expensive. One should keep in mind that while the add-on may protect policyholders from engine damage due to water ingression, the claim may not be admissible if the vehicle is driven during a flood as the same can be classified as contributory negligence. An add-on can only be bought during renewal or at the time of purchasing a new policy,” he said.
Invoice-protection cover
Customers should also look to have an invoice-protection cover. This add-on covers the gap between the insured declared value and the invoice value of the car.
Add-on for consumables
Consumables are also not covered under the policy and one must buy an add-on cover for them. Consumable items of a car include nuts and bolts, screws, washers, grease, lubricant, clips, A/C gas, bearings, distilled water, engine oil, oil filter, fuel filters, brake oil and related parts.
Filing claim settlement
For claims, consumers should reach out to the insurers immediately after a disaster. Due to technological advancements, policyholders can now click pictures and send them to insurers over WhatsApp images for insurance claims. Also, there are special helpline numbers which are set up to fast-track claim settlement requirements.
Insurers should have the policy documents ready in case of a natural disaster.
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