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Explanation and How to Claim Flood Insurance for Cars



Explanation and How to Claim Flood Insurance for Cars - Flooding has been transformed into an annual "party" that often occurs in various major cities in Indonesia. Although for many years, all efforts have been made to prevent flooding, like a season that always happens in fruits, flooding has never seemed to be a seasonal agenda in the country.

Every time a flood comes, no doubt, a variety of negative impacts and damage occur. Not only does it cause losses in material form, but floods also often cause casualties, be they fatalities that coincide with when floods occur or after floods. For example, many flood victims have contracted diarrhea and dengue hemorrhagic fever (DHF).

Flood disasters can indeed happen to anyone in the rainy season like today. Of course, we all have to realize that basically, floods occur because of the negligence of all parties in maintaining the cleanliness and balance of the natural surroundings. Just imagine how much loss arises due to flooding that occurred within a few hours, where the economic activity will experience paralysis, and various infrastructure also suffered severe damage. Very sharp, right?

What to do if floods hit?
If floods hit, hope you don't panic too much. Mainly, protect your soul and all family members. After that, you can think of protecting your assets, such as houses, cars, and other valuables.

It would be helpful before the floods occur, you already have protection or insurance for your life, health, and assets such as houses, vehicles (cars and motorcycles). The goal, insurance protects you from various financial losses that can occur due to floods that cannot be predicted when they occur.

The Importance of Vehicle Insurance
Having vehicle insurance is included in a relevant category because a motorbike or a car damaged by flooding can be compensated by the insurance. With notes, your vehicle or motorcycle already has a vehicle insurance policy with extended collateral disasters such as floods.

So vehicle insurance will benefit you because of insurance functions in providing protection to avoid various kinds of risks and losses that arise at unexpected times. For example, when there are an accident and damage to the car due to injury, floods, landslides, and so forth.

It is highly recommended you have vehicle insurance since the first time you buy a vehicle. Because basically, you never know when a disaster will come and cause harm. So guarding first is undoubtedly better than sad later.

Flood Insurance for Cars
As an illustration, flooding and striking vehicles in the middle of the road can be a scene that will fill your view when the rainy season comes. Avoiding is one of the most impossible things to do, especially for those of you in Jakarta and its surroundings. Narrow streets will not give you space to simply turn around or enter a secure parking lot because, in an instant, the road will be totally jammed.

Not to mention if your car is suddenly flooded and there is no time to save it. Things like this can happen. If the above conditions happen to you, the only thing you can do as a form of protection for your vehicle is car insurance.

Understand and make sure if your vehicle or car has been equipped with car insurance with extended coverage due to flood disasters.

Never forget to pay close attention to all vehicle insurance policies so that at any time, if your vehicle is flooded, you get protection for the incident.

Do not underestimate this, many people are not so concerned when buying car insurance. Generally, car insurance that is often traded is only a total loss only (TLO) and has not to cover damage due to natural disasters.

The effect, you will not get compensation if there is a flood because, in your car insurance policy, there is no scope of expansion due to flood disasters. Just imagine how much it will cost you to spend to make repairs to your vehicle that was flooded? Moreover, you do not have flood coverage in your vehicle insurance policy. This, of course, will be very draining the contents of the bag and also your mind, right?

Tips you can do before the flood season comes and damage your vehicle:

Check back and re-read the contents of the car insurance policy that you have. Pay attention to the written points regarding coverage of car damage due to flooding. Generally, this will be called the term "expansion."

If it turns out, you have no expansion risk of flooding in your vehicle insurance. Immediately contact the relevant insurance to ask to add the expansion to your vehicle insurance policy.
You will be charged additional fees with the addition of flood expansion for your car insurance policy.

If you already have a car insurance policy with coverage of flood expansion:
Remember that even if your vehicle has an extended flood risk coverage from insurance, it does not mean you can deliberately break through the high level of standing water. As much as possible, you should still avoid standing water and keep the vehicle from being flooded.

There is a reason why you should still avoid waterlogged roads, this is important so that your vehicle insurance claims do not fall because the act of intentionally forcing or breaking into flooded areas is one of the things that can invalidate a claim.

For vehicles whose status is still in the credit period, generally, you already have vehicle insurance. Also, make sure to ask first if your car/motorcycle installment insurance covers expansion due to natural disasters/floods. So you can be calm and be able to get compensation according to the price of coverage minus the remaining installments when a disaster occurs. 

Flood Premium and Applicable Government Rules

 Insurance premiums via timesofsandiego.com

When floods occur in various areas, the insurance company will inevitably be flooded with claims from its customers. For this reason, the government restructures premium regulations and regulations that are set against floods and other natural disasters.

This is very important to do to avoid tariff wars between these insurance service providers. The government also monitors insurance policies through the Financial Services Authority (OJK).

Regarding the policies set by the government, these are regulated in Circular No. SE06 / D.05 / 2013 December 31, 2013, which contains premium rates and acquisition costs in the motor vehicle and property insurance business lines and particular types of risks including floods, earthquakes, volcanic eruptions, and tsunamis in 2014.

This will significantly help create healthy competition among insurance service providers, especially vehicle insurance. That way, the rights and obligations of both parties (in this case, the insurance service provider and the insurance user itself) can be protected and guaranteed as a whole without harming any of the interested parties.

How to Claim Flood Insurance

How to Claim Car Insurance via autoinsurance.org
Basically, you, as the owner of vehicle insurance coverage that covers the expansion of floods, can not be arbitrarily and deliberately break into puddles and floods without thinking about the damage that will be experienced by your vehicle.

Understand if the insurance provider also has standard provisions and limits that they will bear for your vehicle. So as much as possible, avoid water puddles and never intentionally break into a flood because your claim could be dropped and not covered by the insurance.

The following standard procedures must be carried out for submitting a car insurance claim when affected by a flood: 

1. In the first step, all you have to do is immediately contact the nearest call center/insurance representative office. Clearly inform the incident, vehicle position, and the condition of the standing water or flood.

Note: Make sure you already have your call center/car insurance representative's contact center stored in your wallet/cellphone. This is important because, at any time, floods occur, you can quickly contact the insurance.

2. Immediately disconnect the electricity in the car, including the battery, and never start the engine when the condition of the vehicle has been submerged in water.

3. It is better if you immediately request for evacuation assistance, especially for cars, to avoid damage to the engine area.

4. Prepare the required documents, such as a car insurance policy number, or if there is a photocopy of the report at the same time, this will facilitate the claim process.

Note: Make sure you have saved your policy number data on your cellphone, or you can save it in the form of a photo file stored in an email that you can later photocopy when submitting a car insurance claim.

5. Remember, the general rule for the process of reporting this claim must be made a maximum of 72 hours after the incident. However, this rule is flexible and depends on the services and provisions of the insurance service provider company. Make sure you don't delay reporting and claiming your car insurance in the event of a flood.

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