Date:07/07/2006 URL: http://www.thehindubusinessline.com/2006/07/07/stories/2006070702970600.htm

Back Mumbai rains dampen insurers' spirits again

Our Bureau

Claims trickling in; clear picture of damage to be known in next few days

Like last year, we will simplify the formalities required for claim registration. Delay in intimation of the damage will be condoned if there is a genuine reason.

Mumbai , July 6

Uneasy memories resurfaced this week for the insurance industry as it took in afresh the sight of cars and two-wheelers submerged in the flooded areas of Mumbai. The industry is still dealing with the devastation of last year's torrential rains, which left over 15,000 cars and 30,000 two-wheelers damaged.

Insurers say that although some claims have started trickling in they expect to have the full picture of this week's damage only in the next few days.

Mr Mahendra Dhruva, National President, The Institute of Insurance Surveyors and Adjusters, said that dealerships across the city were seeing claims being registered. "We have received reports of cars being damaged in the low-lying areas of Santa Cruz, Parel, Kandivli and Kurla. A number of the high-rises that have basement car-parks have been affected," he said.

Besides this, there have been complaints of private contractors looking to make a fast buck with their towing vans. "There have been complaints that towing vans are charging as much as Rs 2,000-Rs 3,000 for just a 2-3 km stretch. Car owners are now being asked to secure a receipt and then register their complaint," said Mr Dhruva.

Mr K.K. Mishra, Senior Vice-president, Tata AIG General, said that the company has already received 52 claims of which 78 per cent was from vehicle owners.

Towing vans used by the traffic police usually charge Rs 200 for towing and an additional Rs 100 as fine for a parking offence. However, towing vans owned by private contractors are being put to use during the monsoon.

Insurers, who had suffered severe losses last year, are also monitoring the situation closely. "We are expecting motor as well as householder's claims to be registered in the next week. Once the full extent of the damage is known, then we will formulate guidelines with respect to claim settlement," said an official at a public sector insurance company.

Officials said that concessions would be made for flood-affected vehicles.

"Like last year, we will simplify the formalities required for claim registration. Delay in intimation of the damage will be condoned if there is a genuine reason," said an insurance company official.

Surveyors say that most dealerships have stocked up a higher number of spare parts ahead of the monsoon.

Last year, the shortage of spare parts had caused undue delay in repairs of flood-damaged cars.

The Western India Automobile Association (WIAA) has set up a cell to provide emergency services. Services for people who require ambulance or towing services, and who need help with their insurance claims can approach WIAA, said Mr Nitin Dossa, Executive Chairman, WIAA.