The recent catastrophe in Bengaluru has proved that vehicles, especially gasoline ones, aren’t immune to the damage caused by downpours. Events in the past have made this clear and as we move ahead, this is going to be a threat that apparently will persist for vehicles. Such situations have created a new tech that’s been around in the country lately. Also Read - Buying a new car, bike will be expensive from June 1, as third-party motor insurance premium to go up
RMS, an on-demand risk analytics company, has created a new model that has over 1.25 lakh simulated flood events from 9,000 different catchment areas in the country. The model studies risk accounting for river-based and alone rain-based flooding and help insurers to manage and quantify the risks caused by the flood.
“This model encompasses the widest possible risk accounting for fluvial and pluvial flooding and is used by a number of insurers to quantify and better manage and transfer flood risk,” stated Alok Kumar, the Managing Director of RMS India.
Interestingly, such models can be used by the auto insurer to screen risk levels. Owing to advancements in computing and simulations, the data quality provided by such models has been improving, which means there are better and more reliable predictions.
Due to such floods, Insurance add-ons have become the state of play. Meaning, that auto insurers are offering Insurance add-ons such as Engine protectors, and consumers or the insurees are ready to pay for it. However, such protectors do bump up the price of insurance premiums by about 15 percent, depending on the insurance company.
Whilst insurers are also setting up more insurance helplines, claims depots, and automatic ticket raising for information received from the online platforms. The new tech model helps insurers to automate the claims process for affected vehicles.
In addition to this, K Mahalingam from TSM Cars said that frequent floods in the urban areas will soon create a spin-off industry to help used car buyers learn if the car was affected by floods.
In fact, some car service stations and auto companies are offering more transparency through their own apps offering omnichannel services to users. For instance, myTVS recently launched its own platform called myTVS Life360 super. The platform offers omnichannel services offering transparency for used cars. This is another addition to the emerging technology which has apparently emerged due to the recent floods in Bengaluru.