When two cyclones affect the same region within a short period, assessing insurance claims can become more complicated. With Cyclone Murasu approaching the Andhra Pradesh coast after Cyclone Arnab, homeowners and vehicle owners may wonder how insurers will determine when the damage occurred and whether their policies will cover the losses.
The assessment will depend on the damage, the evidence available and the terms of the insurance policy. Photographs, repair records and inspection reports documenting the condition of a property or vehicle after each storm may help establish the extent of the damage.
Amit Chhabra, chief business officer – general insurance at Policybazaar, said extreme weather events could leave households exposed to significant financial losses if they do not have adequate insurance.
“The landfall of Cyclone Arnab near the Andhra Pradesh coast is a stark reminder of how extreme weather events can put both homes and vehicles at risk. Yet, many families remain underinsured, leaving themselves vulnerable to significant financial losses when disaster strikes,” Chhabra said.
How will insurers distinguish damage caused by two cyclones?
If a property or vehicle is damaged during the first cyclone and sustains further damage during the second, determining the extent of the losses from each event may require a closer assessment.
Photographs and videos taken after the first storm, followed by records of additional damage after the second, can help document changes in the property’s condition. Inspection reports, repair estimates and other relevant records may also assist in assessing the claim.
The final settlement will depend on the circumstances of the loss and the policy’s terms and conditions. Two separate cyclones do not automatically mean that a policyholder will receive two separate payouts.
Does home insurance cover cyclone damage?
Home insurance can cover damage to a house and its contents, depending on the policy and its exclusions. However, policyholders should check the terms of their cover rather than assume that every type of cyclone-related loss is insured.
Where a property is damaged by successive storms, documenting the losses and informing the insurer promptly can help with the claims process. Policyholders should retain photographs, inspection reports and repair estimates to support their claims.
Chhabra said understanding policy coverage was as important as having insurance.
“The real gap is not just insurance penetration, but awareness of what a policy actually covers. Homeowners and vehicle owners should review their policies, check natural calamity coverage and understand exclusions before disaster strikes,” he said.
Does motor insurance cover cyclone-related damage?
A comprehensive motor insurance policy or a standalone own-damage policy can cover vehicle damage caused by cyclones, subject to the policy’s terms and exclusions.
Third-party motor insurance, which is mandatory in India, does not cover damage to the policyholder’s own vehicle. Vehicle owners should therefore check whether their policy includes own-damage protection against natural calamities.
If a vehicle is damaged during successive storms, photographs, inspection records and repair estimates may help document the losses. Owners should notify their insurer promptly and follow its instructions on inspection and repairs.
Does life insurance cover deaths caused by natural disasters?
Life insurance provides a death benefit to the nominee if the insured person dies during the policy term, subject to the policy’s terms and conditions.
Coverage for deaths associated with natural disasters depends on the specific policy wording and applicable exclusions. Policyholders should check their documents rather than assume that deaths caused by cyclones or floods are automatically excluded.
Optional riders may provide additional benefits for specified risks, depending on the insurer and product. These may involve an additional premium and are separate from home or motor insurance, which covers eligible damage to property and vehicles.
Why are natural disasters challenging for insurers?
Natural disasters can generate large numbers of claims within a short period, placing pressure on insurers’ claims operations and financial resources.
Several factors contribute to this challenge:
- Multiple claims: A single cyclone can damage homes, vehicles and businesses across a wide area, leading to a surge in claims.
- Uncertain losses: The severity of damage can vary considerably between locations, making the overall cost difficult to estimate.
- Large payouts: Widespread destruction can result in substantial claims over a short period.
- Reinsurance: Insurers transfer part of their risk to reinsurers to help manage large-scale losses.
- Changing weather patterns: Historical data may not fully reflect future risks, complicating long-term risk assessment and pricing.
Insurers manage these risks through risk modelling, financial reserves, geographical diversification and reinsurance arrangements. Policy terms and exclusions determine the circumstances in which individual claims are payable.
Cyclone Murasu: Tamil Nadu sends 500 power personnel to Andhra Pradesh
As Andhra Pradesh prepares for Cyclone Murasu, the Tamil Nadu government has deployed 500 electricity department personnel in 25 teams to help restore power supply disrupted by the storm, Electricity Minister R N Nirmal Kumar said on Monday.
Tamil Nadu has also sent essential equipment to support restoration work. The assistance followed a request from Andhra Pradesh Chief Minister N Chandrababu Naidu to Tamil Nadu Chief Minister C Joseph Vijay for manpower and machinery after a large number of electricity poles were damaged.
In its latest bulletin, the India Meteorological Department (IMD) said the severe cyclonic storm was moving west-northwestwards at 14 kmph. It was centred about 120 km east-southeast of Nellore, 140 km east-southeast of Kavali and 170 km northeast of Chennai.
The IMD forecast that the storm would cross the south Andhra Pradesh coast between Nellore and Narsapur around midnight on November 2 and in the early hours of November 3. Sustained wind speeds were expected to reach 100-110 kmph, with gusts of up to 120 kmph.
Chennai rains: Heavy showers cause waterlogging, disrupt flights
Cyclone Murasu’s outer rain bands brought widespread showers to Chennai and neighbouring districts. In the 24 hours ending at 8.30 am on Monday, Kadapakkam and Parrys received 15 cm of rainfall each, while Manali New Town and Manali recorded 14 cm apiece.
The Greater Chennai Corporation deployed pumps and backup motors in vulnerable locations to address waterlogging. Two of the city’s 22 subways experienced minor waterlogging, which was cleared promptly. All subways remained open to traffic, while schools in Chennai were closed as a precaution.
Air travel was also disrupted. IndiGo cancelled 10 flights scheduled to operate from Vijayawada, while Air India Express cancelled services connecting Visakhapatnam and Vijayawada, as well as Hyderabad and Vijayawada. Eleven flights linking Chennai with Vijayawada, Rajahmundry, Kadapa and Tiruchirappalli were also cancelled.
Greater Chennai Police advised residents and visitors to stay away from Marina, Pattinapakkam and Besant Nagar beaches because of rough seas, high waves and strong winds.
Cyclone Murasu: Andhra Pradesh, Odisha step up preparedness
Andhra Pradesh authorities stepped up preparations ahead of the expected landfall, keeping six National Disaster Response Force (NDRF) teams and seven State Disaster Response Force (SDRF) teams ready for rescue and relief operations.
Officials were directed to monitor water levels in canals and streams, move residents of vulnerable low-lying areas to safer locations where necessary and maintain drinking water supplies.
Odisha also strengthened its disaster response arrangements, positioning more than 300 rescue teams from the NDRF, Odisha Disaster Rapid Action Force and Odisha Fire Service for deployment.
Districts including Ganjam, Gajapati, Rayagada, Koraput and Malkangiri were placed on alert. The IMD forecast heavy rain in parts of southern Odisha, accompanied by thunderstorms, lightning and gusty winds.