How to settle claims for over 80,000 vehicles in Henan Province “soaked in water”? How to deal with it?

How to settle claims for over 80,000 vehicles in Henan Province "soaked in water"?  How to deal with it?

The torrential rain hit Henan, and the hinterland of the Central Plains was a piece of Zeguo.


On the afternoon of July 21, the Henan Provincial Flood Control Emergency Press Conference revealed that the heavy rain caused 25 deaths and 7 losses, and 89 counties in Henan were affected. In addition to damage to personnel and infrastructure, the worst is the car parked on the road.


Zhang Yongxuan, a native of Zhengzhou, watched his car flooded over the roof. “The water came too fast and couldn’t move at all. It’s a blessing for people to escape.” On the way to escape, he saw the vehicle on the main road and was flooded. Running forward is like “autonomous driving”.


According to the Zhengzhou Meteorological Bureau, from 16:00 to 17:00 on the 20th in Zhengzhou, the rainfall in one hour reached 201.9mm; from 20:00 on the 19th to 20:00 on the 20th, the rainfall in a single day was 552.5mm. It broke the historical record of 60 years since Zhengzhou was established in 1951.


Motor vehicles encounter extreme rainstorms, and there is nothing to do. The cars that are too late to drive to the high ground or into the warehouse have the fate of being “bubble”. The Statistical Bulletin of the National Economic and Social Development of Henan Province shows that the number of cars in the province at the end of 2020 was 17.59117 million, while the number of cars in Zhengzhou ranked sixth in the country. As of July 6, 2021, it reached the number of motor vehicles in Zhengzhou. There are 4.9 million vehicles in stock.


According to data from the Henan Banking and Insurance Regulatory Bureau, from January to May 2021, there were 13.0521 million motor vehicle insurances in Henan, which means that there are still some vehicles that have not yet purchased insurance and need to bear the losses themselves.


During the heavy rain, a large number of cars were wading or flooded. The staff of the People’s Insurance Company of China told the reporter of Caijing, “Once the car dashboard is flooded, it will basically be scrapped.”


According to incomplete statistics from a reporter from Caijing, at present, among 16 companies that publish insurance data, the number of auto insurance reports in Henan Province has reached 82,000, which means that more than 80,000 cars have been “soaked in water.”


The car that Zhang Yongxuan drove was Hyundai Yuedong. It was an old car. After escaping to a safe place, he immediately called the insurance company and the first pass was busy.


He continued to call to get through, “Tell them about the location and the situation of the water, and then they let me wait for processing.” As of press time, Zhang Yongxuan has already started the claims process with Ping An Insurance. According to the standard, his car can be fully damaged, so as to be compensated accordingly.


“Fortunately, I bought car damage insurance, otherwise the loss would be large,” Zhang Yongxuan said. “It’s not bad to get compensation. Originally, I planned to change the car.”


Ms. Zhang from Zhengzhou told the Caijing reporter that the electronic components in her car were damaged after the car was soaked in water, but the engine was fine. On the way home, she saw cars soaked in water all the way. Mercedes-Benz’s after-sales staff told her that they had received dozens of after-sales calls in one day on Tuesday. But she didn’t buy water insurance for the vehicle. “It is estimated that it will be difficult to compensate, and she has to repair it herself.”


Ms. Zhang said that a lot of cars were parked in the underground parking lots of several communities, and the properties of the communities ran away. “It is estimated that the property has to take part of the responsibility. After all, some residential parking lots are okay, and some are fine.”


In fact, after the flood in Henan, insurance companies have activated emergency plans and opened 24-hour dedicated telephone lines to rescue trapped vehicles. According to the number of reports published by some insurance companies, more than 95% of them are auto insurance reports.


Of the 76 property insurance companies of the China Insurance Association, 16 have announced the number of reported cases. As of press time, the total number of cases has reached 86,000, of which approximately 82,000 were reported for auto insurance, with an estimated loss of more than 1 billion yuan.


Among them, Ping An Property & Casualty received the most reports. As of 12:00 on July 21, Ping An Property & Casualty has received a total of 20,600 disaster-related reports, including 20,400 auto insurance reports, 193 property insurance reports, 18 accident insurance reports, and 15 agricultural insurance reports. , The estimated amount of compensation will reach 600 million yuan.


China Life Property and Casualty Insurance, as of 9:00 on July 21, has accepted 7413 auto insurance reports in Henan province, with a reported loss of more than 200 million yuan.


In response to the heavy rain in Henan Province this time, all insurance companies have basically made emergency measures, such as mobilizing staff from surrounding areas and simplifying the claims settlement process. The plans of each insurance company are different.


The staff of PICC told the Caijing reporter that PICC’s approach is: “open a green claim channel, remote online loss assessment, WeChat electronic signature authorization, claims can be made at home, avoiding customers to go back and forth; increase the provincial level of compensation Reserve funds to ensure adequate compensation; neighboring provinces have deployed capable claims settlement forces to ensure timely handling of various claims cases and timely compensation.”


“After the car is soaked in water, you must first report the case, contact the rescue, and wait for the insurance company to handle it,” Meng Lingpu of the Henan branch of Yongcheng Insurance told the reporter of Caijing. He reminded the car owner to “do not start twice” because of the restart. The cylinder that has already entered water will be impacted by the compressed water, causing serious damage to the engine. The correct approach is: “Personnel should leave the car and wait for rescue or contact repairs in a safe area.”


If the car is started a second time after being soaked in water, it will not be covered by the insurance company, and the owner may have to bear the responsibility.


Under normal circumstances, as long as you purchase a car damage insurance, you can apply to the insurance company for compensation if you suffer losses in a force majeure natural disaster like heavy rain. The damage is determined according to the insurance policy and the level of flooding.


The aforementioned PICC staff told the Caijing reporter: “The flooding height exceeds the dashboard basically, and the scrapping process is basically required.”


In 2020, the China Banking and Insurance Regulatory Commission issued the “Guiding Opinions on the Implementation of the Comprehensive Reform of Auto Insurance”, which expanded the scope of liability for commercial vehicle insurance protection, increased the theft of motor vehicles, broken glass alone, spontaneous combustion, engine wading, excluding deductibles, Unable to find third-party special insurance liability.


This regulation will come into effect on September 19, 2020. Meng Lingpu told the Caijing reporter that car insurance purchased after September 19 includes water insurance, even if there is no car damage insurance, the corresponding compensation will be paid. , If there is car damage insurance, it will be paid in full.


Ma Qiuying, deputy director of Beijing Mingshuai Law Firm, reminds car owners: “Even if there is no car damage insurance, there will be losses caused by natural disasters in the general insurance contract, which belong to the scope of compensation. Therefore, the car should study the insurance contract carefully. If there is this clause If the insurance company does not settle claims, it can use litigation to protect its rights.”


The staff of the People’s Insurance Company of China also said that in the face of such natural disasters, car owners who have not bought water insurance may have a certain degree of accommodation and receive compensation. The specific situation depends on the plan of the local insurance company.


Ma Qiuying told the reporter of Caijing that, in accordance with the terms of the auto insurance contract, insurance companies have the responsibility to pay for cars parked in parking lots, on the road, and on the side of the road that are soaked in water. Car owners should contact the insurance company in time.


Meng Lingpu revealed to the Caijing reporter that it is mainly the rescue phase. After the flood, the damage will be determined and then compensated. The lighter ones can be paid quickly, but the compensation cycle for serious losses is still uncertain. If the owner is stuck at home and cannot know whether the vehicle has been soaked, there is no need to worry. It is okay to report the crime after the water has gone.


He introduced, “Generally, the insurance industry association will coordinate with everyone to negotiate the loss standard for the loss caused by such a major disaster, and we will then determine the loss and pay according to this standard.”

After the heavy rain disaster in Henan Province, a large number of “soaked cars” will be produced, and they may flow into the second-hand car market after being packaged.


According to the degree of soaking, the “soaking car” is divided into a wading car, a soaking car and a soaking car. Generally speaking, those with water depth below the car floor are classified as wading cars, those with water depth between the floor and the center console are submerged cars, and those with water under the roof are submerged cars.


Water damage to the car body is relatively small, and water immersion will cause serious damage to the electronic components and wiring of the car body, the engine and even the interior trim. The water-soaked car basically has no repair value, to the extent of being scrapped.


A person engaged in accident car handling told Caijing, “For accident cars, in order to reduce losses, insurance companies will find relevant companies to deal with them. After they take over the car, the general operation is to sell parts, but it is also possible. After repairs, it flows into the second-hand car market.”


It is very common for “bubble cars” to flow into the second-hand car market, and also flow from areas experiencing heavy rain to all parts of the country. Earlier, after heavy rains in Wuhan and Guangzhou, there have been a large number of submerged cars in the second-hand car market.


A second-hand car dealer told a reporter from Caijing, “After the rainstorm, some of the’soaked cars’ will continue to operate after repairs, but most of them are sold directly to second-hand car dealers, repair shops or insurance companies.”


The car dealer said that the water car has a price advantage, as long as the water car is not sold as a boutique car. “A lot of people now buy a water bubble car, because the price is only half of the normal market.”


However, it is difficult for ordinary consumers to find hidden dangers for vehicles that have undergone intensive repairs unless they are identified by professional vehicle inspectors. This creates opportunities for second-hand car dealers to raise the price of submerged vehicles.


Soaking cars are bought by second-hand car dealers at low prices, and sold at high prices after refurbishment. The price difference of some models can even reach hundreds of thousands of yuan. At the level of laws and regulations, there are no regulations on the secondary sales of soaking cars. Such a large profit margin has attracted many second-hand car dealers.


“It’s difficult to repair a soaking car at one time. Circuit boards, wires, and on-board equipment are the biggest problems. Many problems have to be repaired before they can be discovered,” said the above-mentioned second-hand car dealer.


After the famous “July 21” rainstorm in Beijing in 2012, more than 20,000 “water trucks” were produced. According to the Legal Evening News, after the floods, many second-hand car markets in Beijing were unattended, and many people were afraid of buying “soaking cars” and did not dare to start easily.


A car collector said that the “soaked cars” acquired by second-hand car dealers are mainly vehicles with damaged circuits, appearance or interior. Repairs to these problems only take a few days. “If the soaking is not serious, take the car with you. Go back and dry it, and you can sell it the next day.”


Shen Rong, deputy secretary-general of the China Automobile Dealers Association, once told the media that there is no law in the country that prohibits the entry of soaked cars into the market. At present, my country’s second-hand car transaction still implements the 2005 “Measures for the Administration of the Circulation of Second-hand Cars.” There is no clear description of the deal for cars and cars with serious accidents.


Consumers need to keep their eyes open when buying second-hand cars.

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