News Non-Life23 Aug 2018

India:Insurance surveyors propose guidelines for handling Kerala motor claims

23 Aug 2018

The Indian Institute of Insurance Surveyors and Loss Assessors (IIISLA) has proposed guidelines to assess the damage suffered by vehicles and buildings in the Kerala floods in order to ensure the speedy processing of insurance claims.

IIILSA suggests that owners of vehicles, which suffered damages in the flood, be allowed to repair them in local workshops, reports Times of India.

As of now, damaged vehicles have to be taken to service centres for repairs and the insurance surveyor assesses the damage before submitting a report to the insurance company to release the claim payout.

“All service centres are flooded with damaged vehicles. It will take time to repair all vehicles at service centres. Delay in repair will only lead to aggravating the damage. It will also increase the burden on the insurance companies and exacerbate the difficulties of people. The purpose of the guidelines is speedy disposal of claims, considering the widespread damage suffered by people in the state,” said IIILSA Kerala secretary Santhosh P A. The guidelines were submitted before insurance companies at a meeting.

The new set of guidelines are in line with those introduced in Chennai and Gujarat, which were hit by natural calamities in 2015 and 2001 respectively. One suggestion is to give a sum of up to INR50,000 ($715) to meet repair costs in a local workshop. Another suggestion is to give INR2,500 to people whose bikes are damaged, as relief.

In Kerala, losses are expected to be higher for motor insurance because the state has one of the world’s highest density of vehicles on the road numbering over 11m, with close to 1m vehicles added in 2017 alone. The state also has one of the highest numbers of luxury cars registered in India.

The record rains and resultant flooding have caused unprecedented loss of lives and property across Kerala with economic losses expected to cross $3bn.

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