Following the series of unexpected events in Japan such as the strong earthquake and tsunami, automobile insurance claims have become a topic of concern for many consumers: can vehicles damaged in natural disasters receive corresponding compensation? It is understood that in the face of a series of natural disasters, automobile insurance claims have "three compensations and three non-compensations". As long as consumers understand these terms, they can choose appropriately when purchasing insurance.
Earthquake not covered, but tsunami is
It is understood that in automobile insurance products, insurance companies mostly list earthquakes as an exclusion clause. However, losses incurred from tsunamis can be compensated. Industry insiders indicate that the risks brought by earthquakes are generally high, with destructive power and the involved area being difficult to estimate. Once a claim occurs, the scope and compensation amount will exceed the capabilities of insurance companies. In addition, earthquake insurance in China often appears in the form of an additional contract, with high fees and requiring senior management approval for claims certification. Therefore, based on risk control, earthquakes are generally not covered.
Different from earthquakes, vehicle losses caused by tsunamis can be compensated. Whether it's personal auto damage insurance or commercial auto damage insurance, the insurance responsibilities clearly include "vehicle damage caused by lightning strikes, hailstorms, heavy rains, floods, and tsunamis."
Currently, earthquake insurance in China often appears in the form of additional insurance to the main contract, with high fees and strict requirements, often needing senior management approval from insurance companies, hence few insurance companies underwrite it.
It should be reminded that if car loss caused by earthquakes needs compensation, the car owner must provide corresponding evidence. If the vehicle is damaged due to falling objects caused by earthquakes and the owner can show proof, then compensation can be obtained.
Auto insurance does not cover, but personal insurance does
Vehicles damaged by earthquakes are mostly not included in the scope of automobile insurance claims. However, if consumers have purchased personal insurance, the losses caused by earthquakes can be covered. It is known that personal insurance includes life insurance and accident insurance. As long as the insured person's death or disability is caused by an accident, the insured can obtain compensation. The compensation scope also includes risks brought by earthquakes. Therefore, in most automobile insurance claims, earthquakes are listed as exclusion clauses because personal insurance can provide corresponding compensation.
Home property insurance does not cover, but some life insurance does
Compared to life insurance, there are few property insurance products that cover earthquake losses. For home property insurance, some life insurance can compensate for personal injuries caused by earthquakes. So why doesn't home property insurance provide compensation? Because from the perspective of insurance science, home property insurance strictly defines natural disasters, including heavy rains, strong winds, lightning strikes, hailstorms, snowstorms, and sudden ground collapses, but there are few property insurance products that cover earthquake losses. Most insurance companies list earthquakes as exclusion clauses in their real estate insurance projects. This means that vehicles crushed under buildings due to the destructiveness of earthquakes cannot obtain compensation, so property insurance does not provide compensation.
Term Explanation: Home property insurance is an insurance that provides compensation through insurance companies when family property suffers from natural disasters or accidents. The coverage mainly includes losses caused by natural disasters and accidents, with accidents roughly including fires and explosions.
Which types of insurance cover earthquakes?
In earthquake claims, most long-term life insurance products can cover earthquakes. For example, lifetime life insurance products do not list earthquakes as exclusion items. Compared to lifetime life insurance, accident insurance has stricter claims. If death is caused by an earthquake, the insurance will compensate. However, if the insured experiences sudden heart attacks or cerebral hemorrhages during the earthquake, further investigation is needed to determine the correlation with the earthquake. In general, the current insurance types that can compensate for earthquakes include long-term life insurance, personal accidental injury insurance, personal accidental medical insurance, student safety insurance, and travel accidental injury insurance. However, it should be noted that student safety insurance and travel accidental injury need to see if there is an agreement on earthquakes between the two parties, and these two types of insurance mostly list earthquakes as exclusion items.
Experts remind consumers to carefully read the exclusion clauses:
Many consumers subconsciously think that natural disasters include earthquakes when buying insurance. But in fact, some responsibility clauses do not explicitly mention earthquakes and other disasters. Such situations are often considered as personal injuries caused by earthquakes, which are included in personal accident insurance. However, some personal accident insurances list tsunamis and earthquakes as exclusion items. Therefore, consumers need to carefully read the items included in the exclusion clauses when purchasing insurance.