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A recent survey conducted by Policyhouse.com among UAE residents has found out that about 60 percent of the participants have very little knowledge about the nitty-gritty of their insurance policies. Very few have made a conscious effort to read and understand the policy document before purchasing the same.

The latest incidents related to heavy flooding have a lot of policyholders confused about whether their vehicle insurance covers damages caused due to flooding? Listed below are few tips that the policyholder can use to identify if their policy cover flooding damages, they are as follows:

Read the Policy Document Thoroughly/Take an Expert Opinion

The best thing to do before committing to buy a policy is to read the policy document carefully and understand the inclusions and exclusions. If a person finds it difficult to understand the terms, conditions, and clauses of the document please do not hesitate to consult a lawyer or an insurance expert to understand the scope of the cover. Buy the insurance policy only when it completely satisfies the purpose of its purchase.

Comprehensive Cover Vs Third Party Cover

Comprehensive covers usually cover damages caused by natural calamities unless the authorities declare the incident as a ”natural disaster”. Insurers usually deal with these claims on a case by case basis hence do not be disheartened if someone else did not receive the claims on their damages.

Note: It has to be noted that most insurers offer flood damage claims to stationary vehicles. If the vehicle incurred flood damages while driving the policyholders will not be eligible for the claim. Third-party insurances, unfortunately, do not cover vehicle damages arising from natural calamities and flood damages are no exception. Hence, Policy premium should not be the only criteria to be considered before deciding to purchase a policy. A cheap car insurance policy might not help the consumer to serve the purpose it was bought for in the first place.

Look For Insurance Providers with High Claim Settlement Ratio

Claim settlement ratio refers to the number of claims dispersed against the total number of claims received. A higher claim settlement ratio indicates a higher chance of the insurance company releasing the claim amount to their customer. When looking for the best car insurance policies in the UAE, please do select insurance providers with high claim settlement ratios for a satisfied claim filing and settlement process. Policy premiums should not be the only major criteria while selecting a policy. With these tips, one can easily identify some of the best car insurance policies available in the country that offer policy covers for flood damages and other natural calamities.