Insurers inundated with flood-related claims

Fitri Wulandari, The Jakarta Post, Jakarta

Realizing the pains inflicted by the recent flooding, some insurance companies have vowed to settle claims quickly.

However, at least one person was disappointed at the rejection of his claim by an insurance firm which insisted properties were not covered against flooding despite an "all risk" clause in his policy.

PT Asuransi Wahana Tata, one of the insurance firms which has promised to settle quickly, said it would focus on processing claims from retailers.

"We give priority on settling flood-related claims from retailers so that they can fix their properties immediately," company director for claims, survey and underwriting Maria Theresia Ratnawati told The Jakarta Post over the weekend.

PT Asuransi Bintang operations director Arizal E.R said it had even paid down payments to its clients while it finished assessing the claims.

"We will start giving a 25 percent down payment for our retail clients next Wednesday," he said, adding his company had received a total of 105 claims from the commercial industry, house owners, and vehicle owners.

Claims for house owners range from Rp 50 million to Rp 60 million (between US$4,873 and $5,847), he said.

The insurance companies have apparently made all necessary arrangements to speed up the settlement process.

Some insurance firms sent surveyors who were authorized not only to asses and calculate damages, but also to settle claim payments on the spot.

PT Asuransi Allianz Utama Indonesia claim manager Wiyono Sutioso said that all flood-related claims from retailers were settled on the same day that surveyors came to asses the losses.

Similar procedures also applied in PT Asuransi Bintang.

"It's our way to speed things up for the flood victims," Arizal said.

Wiyono said that for vehicle claims its clients could go to an auto repair shops appointed by Allianz.

"The auto repairers will send us the claims as soon as they finish repairing the vehicles," he said.

Maria said that the time needed to process the claims depended on how quickly clients provided a list of losses.

"We encourage our clients not to delay completing the list of losses so that claims can be settled quickly," she said.

The settlement process for industrial sector claims could take longer compared to the process for claims from house and vehicle owners given the higher value of the former's properties.

Maria said many insurance companies normally picked a loss adjuster company to asses losses from the industrial sector.

"It is difficult to asses damages at the industrial properties, especially factories because there is a lot of equipment to check and so on."

Maria said it had received 13 claims from industrial customers and ten claims from house owners.

A flood-victims expressed disappointed when he was told his insurance did not cover floods and could not submit a claim.

The man, who refused to be identified, said he had filed a claim with an insurance firm for his car, which was submerged for three days during the flooding.

However, the company rejected the claim, saying it was not insured for flooding despite the "all risk" clause on its policy.

"The company has never explained that the 'all risk' clause does not cover flood. This is against business ethics. They seek to profit from people's ignorance," he said.

Others had no difficulties in having their claims settled.

Gobind, 50, a resident of Kemayoran, Central Jakarta, whose house was inundated with 65-centimeter deep floodwaters, said that he had no problems settling his claim.

"I think it depends on how good your relations are with your insurance company," he said.

Gobind said his insurance company sent a surveyor to his house two days after he submitted his claims.

Although he has yet to submit a list of losses, he believe the settlement process would be quick.

"From my experience, I will get the payment in less than a week," Gobind said. This was the second time he had submitted flood-related claims.

He said that he did not worry that his insurance company would not pay his claims. "All insurance companies are backed up by reinsurance companies, so I am not worried," he added.