Waiting time to fix flood-damaged cars now 3 months

IF YOU bring your flood-damaged car to a dealership today, chances are it will be worked on next year, according to Toyota Marikina.

The three-month-waiting list for repairs is unprecedented in the history of the car industry, which is also beset by losses of at least P4 billion as a result of the massive flooding induced by storm Ondoy.

“Right now we are servicing more than 300 vehicles that were damaged by the flood,” a salesman at Toyota Marikina said.

“But less than half of them are covered by insurance against flood or natural calamities.”

In Quezon City, a public relations man tried to have his car serviced by a Honda Cars dealer along Quezon Avenue, and he was shocked

“I was listed as the 251st customer and my car was to undergo repair in December at the earliest. So I decided to buy the car parts and hire a mechanic to do it,” he said.

Apart from having to line up, car owners also must contend with the absence of insurance cover against flood and other “acts of God.” Only a fourth of all water-logged vehicles are insured, according to the Philippine Insurers and Reinsurers Association.

“The insurance loss alone amounts to P1 billion and it covers only the autos insured from acts of God, which we believe is only one in every four vehicles. The actual losses could reach P4 billion,” said group vice chairmanMichael Rellosa.

He said three insurers alone, including Fortune General, had earmarked P300 million in loss reserves for motor car claims.

“That’s only for three companies and we have 87 companies in [the group],” Rellosa said. He did not name the two other insurance firms.

As insurance claims for properties and autos had piled up to P12 billion, President Gloria Arroyo yesterday ordered the Insurance Commission to speed up the processing of payments for the damage inflicted by Ondoy and Pepeng.

The President also ordered the creation of a special task force composed of the Insurance chief and the Justice Department head that will prosecute insurance companies delaying payment of claims.

She summoned Insurance Commissioner Eduardo Malinis and Justice Secretary Agnes Devanadera at the Palace yesterday to spell out her order.

Malinis said at least P11 billion of the insurance claims were for properties and P1 billion for some 8,000 units of flood-damaged vehicles.

“We already had a dialog with all insurance and surety companies. We have told them that they should hasten the processing of the claims arising from typhoons,” Malinis said.

Under the insurance law, surety companies are given a month to release the claims from the day a proof of loss, which includes a police report or a photo of the damaged property or car, is filed. Violators face a fine not exceeding P10,000 or imprisonment of six months or both.

Rellosa said insurance companies were doing everything they could to speed up the processing of claims, including relaxing documentary requirements if possible.

“However, the sheer volume of claims and the staggering number of damaged cars and homes to be inspected and assessed have become a challenge for adjusters and repair shops,” he said.

The Chamber of Automotive Manufacturers of the Philippines, Inc. said the industry was busy coping with the volume of vehicles needing repair. Some dealerships had to augment their workforce to keep up with the load, it said.

“CAMPI members have so far extended assistance in the form of lower prices and discounts on parts, labor and service for vehicles as well as extending work hours just to accommodate the deluge of vehicles being received,” group head Elizabeth Lee said. –Roderick dela Cruz with Joyce Panares, Manila Standard Today