Motor Insurance Claims See Nearly 40% Spike In Flood-Prone Cities During Monsoon

Tamil Nadu, Karnataka, and Andhra Pradesh reported higher motor insurance claims due to cyclones, while accident-based claims are higher in Delhi NCR and Maharashtra, according to PolicyBazaar.com.

According to data shared by the digital insurance platform, the number of motor insurance claims spike during monsoon, owing to a rise in accidents as well as increased instances of vehicle damage during these months, especially in regions prone to higher rainfall.

The increase is as much as 40% during the rainy months in India, especially in cities that experience heavy rainfall, according to data shared by PolicyBazaar.com.

With the higher risk and the specific needs that vehicle owners now have, add-ons have seen an uptick. Policyholders look at add-ons like zero depreciation, engine protectors, and cost of consumables even for their older cars.

These add-ons help keep claims hassle-free and ensure better coverage as well. For instance, policy-holders in Tamil Nadu and Kerala would need flood-damage add-ons compared to other cities.

In India, hatchback claims accounted for 54% of total claims. Amounts ranged from Rs 20,000 to Rs 25,000. Claims from sedans contributed to 21%, with amounts ranging from Rs 25,000 to Rs 30,000. Claims made by SUV owners accounted for 26% of claims, ranging from Rs 30,000 to Rs 35,000.

Higher claim volumes from hatchbacks were attributed to their higher market share, according to PolicyBazaar.

The nature of claims varied across cities as the cause of damage was different.