How Festival Seasons Spike Insurance Claims in India?

How Does Festival Season Affect Car Insurance Claims?

Take the case of Rakesh, who was driving in a busy street of Delhi on the night of Diwali as he was coming home after a celebration at a relative’s house. The street is glittering with fairy lights, diyas and dazzling spectacles of fireworks. Downside? Heavy bumper-to-bumper traffic and thick air. A moment of distraction caused a minor accident as Rajesh’s car bumped into another vehicle. This small accident soon turned into a hefty repair bill and a car insurance claim. This is not a unique incident; the festive season leads to many such incidents, leading to a surge in car insurance claims.

Here are the interesting data that show how crowded roads, polluted air, and heavy traffic increase the risk of accidents and insurance claims:

1. As per Bajaj Allianz, car insurance claim payout for accidents during festival holidays and long weekends is 60% to 70% higher than at other times.
2. TATA AIG General Insurance also highlights that the average claim payout during the festive season and long weekend holidays is 10 times more than the normal motor insurance claims.
3. Chola MS General Insurance reported a 5% rise in motor accident claims during holiday periods and festivals compared to non-festival times.

Reasons for Spike in Insurance Claims During Festival Season

The following are the main reasons for the spike in insurance claims during the holidays and festive season.

Surge in Car Insurance Claims

Festivals mean holidays and long weekends. People travel back to their home, visit their relatives and go on long trips. This leads to stressed drivers on the highway, congested roads and a higher risk of road accidents. During winter (festive seasons), road accidents also escalate by 15% to 20%. Pollution and fog are also influencing factors. Fireworks can also damage vehicles, which can contribute to a surge in car insurance claims.

Surge in Health Insurance Claims

Festival celebrations also bring in health-related challenges. Eating out, food poisoning, overeating, air pollution leading to respiratory issues, stress-related illnesses and more. Festivals like Diwali promote the formation of fog, leading to many lung-related health emergencies. Unhealthy eating habits can increase the risk of cardiac arrest and health-related issues.

Surge in Home Insurance Claims

Fireworks can also damage properties and homes, increasing the probability of more home insurance claims during the festive season. As most families living in different cities and states travel to their hometown for celebration, there will be a spike in cases of burglary and theft. This can increase the home insurance claims caused by theft and burglary.

Tips For Policy Holders to Stay Protected

The following are the key tips for motor, health and home insurance policyholders to stay protected:

1. Ensure to avail the comprehensive insurance policy. It is important to have adequate cover in the high-risk season. Review your insurance policies before the festive season begins, and don’t forget to update the policy to have complete protection against potential risks.
2. Avoid stress driving, follow traffic rules and avoid travel during peak hours.
3. If you are travelling for many days, secure your home with CCTV, safe and smart locks installed.
4. Stay hydrated, avoid unhealthy food, and avoid overeating to reduce the health risk. Take preventive measures to keep yourself healthy from allergens and pollution during festivities.
5. Opt for the right add-on while buying an insurance policy. For example, ensure to avail a zero depreciation cover for your car and get a return to invoice add-on in case the vehicle is brand new and expensive.

You can visit Jio Insurance Broking to buy insurance. You can compare the policies from various insurance providers and then compare them on the basis of features, add-ons and cost to get the right coverage at an affordable price.

Festivals are integral parts of our vibrant Indian culture. A bit of caution and comprehensive insurance coverage with the right add-on can help you avoid the dark side of celebrations.

Conclusion

From Diwali firework accidents to Christmas thefts and burglaries, from crowded festive roads to unattended homes, festival celebrations in India carry risks alongside joy. Surge in insurance claims during festival seasons is a reminder that insurance is not just a legal requirement but an essential shield against uncertainties. A collective effort of being cautious and proactive can reduce the risk.