By Cedric E. Stephens,ContributorDear Helpline,
ARE THERE any differences between making a claim for hurricane damage under a motor policy from one under a household
policy?
E.M.,
Kingston 10.
Dear E.M.,
You posed a simple but intriguing question.
Many persons overlook
vehicle losses when they talk about hurricane damage. The focus tends to be on infrastructure, farm products, buildings and their contents. This is surprising given our love affair with
vehicles.
Nearly 50 cents of every
dollar we paid for non-life insurance last year (or about
$7 billion) was for motor insurance. (This compares with $5.6 billion for houses, factories, offices, other buildings and their contents).
VEHICLE CLAIMS
Members of the insurance lobby group Jamaica Association of General Insurance Companies (JAGIC) do not behave any
different from the rest of us. Even though they cover vehicles against natural disasters, the group's post-Ivan claims advisory is silent on vehicle claims!
Not all motor policies provide coverage against hurricane. Third party and third party fire and theft policies generally do not. Additionally, only some comprehensive policies include the protection. The coverage is not always 'married' to this type of insurance. So, one of the first things you should do is to find out if your car was covered against this type of loss.
The coverage provided to cars and other types of vehicles is similar to the protection granted to other types of
property. That is, vehicles are protected against the effects of flood and wind damage caused hurricanes.
RULES FOR CLAIMING
The rules for making a claim for hurricane damage under a motor policy are, generally, no different from those under a household policy. Your post-loss actions should be guided by my four commandments. They are:
Act as though you are
uninsured.
Report your loss to insurers as quickly as possible.
Prove your loss (to insurers).
Find out about the 'nuts and bolts' of your policy (or
contract).
Since these rules were the subject of last week's article I do not intend to discuss them separately except in the case of the third.
Proper proof of the loss involves completing the insurer's claim form. The second step involves sending insurers (or their rep, the adjuster) a detailed estimate for repairing the vehicle.
Typically, there would be no difference between an estimate for repairing a front end
damaged in a collision and one for fixing flood damage that arose as a result of Hurricane Ivan. A competent repairer knows exactly the information the insurers would require and in what detail, and would also be familiar with the claims process.
The repair process would start after the estimate was
prepared. An adjuster would review it along with repairer. Once they agreed on the details, i.e., the work to be done and the costs for parts, materials and labour, the adjuster would authorise repairs.
'WRITING OFF'
If, on the other hand, repairing the vehicle was deemed to be uneconomical, the adjuster would recommend 'writing it off'. Payment of your claim would then be based upon its pre-accident value instead of the cost of repair.
I hope that you are in the group of persons who had the wisdom to cover your vehicle against the effects of natural disasters and that this article will help you in preparing your claim.
Cedric E. Stephens
provides information and advice about the management of risks and insurance. If you need free information or counsel to help you solve a problem write to The Financial Editor or contact Mr. Stephens directly at aegis@cwjamaica.com
