MUMBAI: Car owners in Mumbai, New Delhi, Chennai and Kolkata may have to pay 15% higher premium than their cousins in other parts of the country as insurance companies believe the risk of insuring cars in big metros are higher after Chennai floods saw more than Rs 1,500 crore worth of claims.“We will have to build in the factor of flood for all big cities that are developing fast and premium should go up by 10%-15%,” said Vijay Kumar, head of motor insurance Bajaj Allianz General Insurance.“Simple clogging due to rain water can enter basement parking and result in claims.” Various parameters, including geography and fuel type, are considered while pricing the motor insurance policy.Chennai floods have resulted in record claims of Rs 1,500 crore due to damage to cars, which is more than double of what insurers faced during the Mumbai floods in 2006.“After the Chennai experience, we know that severity of claims is higher in metros, so there will be an increase in premium,” said SS Gopalaratnam, MD and CEO of Cholamandalam MS. “We are trying to see if flood related policy rates could be revised both in motor and property because losses are higher by up to 10%.”Most insurance companies have paid motor claims worth Rs 30 crore- Rs 50 crore. Insurance companies have set up special helplines and expedited claim payouts and are helping cars to be towed to the nearest workshop. The regulator had also stepped in and asked companies to settle claims within a stipulated time.IRDA also asked insurers to publicise details of their offices and special camps set up for the purpose through the media and state government to enable filing of claims.After the tariff deregulation in 2007, insurers have been undercutting each other in most businesses. Experts say insurers need to invest in actuarial capabilities to underwrite risk and price it accordingly.Other additional covers such as engine protector, depreciation and car replacement cover are bought with standalone motor insurance cover. The claims have already exceeded that of Jammu & Kashmir and Uttrakhand floods where there was a hit ofRs 1,500 crore each time for the industry: the claims from Chennai floods have already touched close to Rs 3,000 crore.