Your Auto Insurance Policy May Not Be Enough During The Monsoon – Here’s Why


Take the necessary precautions to stay financially protected and renew your auto insurance policy periodically.

Even though the monsoon is one of the highly anticipated seasons in India that relieves us of the summer heat, it does come with its fair share of challenges. For example, areas with high rainfall i.e. areas prone to flooding suffer huge losses during monsoon seasons and people also face various challenges when it comes to driving their vehicles. own vehicle.

Parthanil Ghosh, President, Motor Business, HDFC ERGO General Insurance, said: “The main cause that the majority of car owners end up spending a significant portion of their finances is lack of awareness and delays in taking action. precautionary. “

He adds: “Although, according to the government’s mandate, every vehicle owner must have a valid insurance policy, more than 50% of vehicles do not have insurance and in the event of an eventuality, these vehicle owners tend to spend out of pocket for repairs and damages.

Therefore, experts say, to avoid such situations, it is imperative to take out comprehensive auto insurance with all relevant add-ons and renew it regularly to avoid any kind of financial loss for your vehicle.

Here are some of the important additions to consider in order to stay safe during monsoons;

Engine and gearbox protection cover – Driving vehicles in a waterlogged situation can cause water to enter the engine, damaging the engine, battery, and transmission. Engine repairs and replacement costs are generally high. This add-on package will provide protection against expenses incurred for repairs and replacement of parts.

Consumables coverage – Irreparable damage could be caused to the vehicle due to the humidity accumulated during the monsoon. This add-on covers repairs and replacement of most consumables such as oil, nuts, bolts, screws, washers, among others.

Roadside Assistance Service (RSA) warranty – Experts say this is one of the most vital and needed supplemental coverages right now.

Ghosh adds, “With the pandemic crippling our vehicles, car batteries may be running out of charge. This coverage provides emergency vehicle service to policyholders, on the road or even if the car is parked in the garage at home.

The following services can be used under this coverage-

  • Mechanic on site – A mechanic is dispatched to the site where the insured’s vehicle is stuck to assist with necessary repairs
  • Towing Service – If necessary, the insurance company will arrange a towing van to tow the insured’s vehicle to the nearest garage.
  • Battery Failure – If the car’s battery fails due to weather conditions, a technician is dispatched to start the insured’s vehicle.
  • Replacing a flat tire – The policyholder should contact the insurer, if they have a flat tire or if they have become bald, to resolve the problem on the spot.
  • Spare key – In the event that the key is lost or has been left inside the car, the policyholder can ask the insurer to take care of a set of spare keys from his home
  • Return on Invoice – In the event of total loss or theft, the additional Return on Invoice cover reimburses the insured for the original purchase value (ie the road price) of the car. Ghosh says, “Unlike coverage based on declared insured value (IDV), this coverage bridges the gap between the depreciated value (IDV) and the billed value of the car along with registration fees and other applicable taxes. This is important coverage, especially in areas prone to natural disasters such as flooding, which can result in the total loss of the vehicle.

Experts also advise vehicle owners to insure their vehicles with these two specific additional coverages –

Zero amortization cover – This additional cover ensures that the policyholder receives compensation in the event of an accident or breakdown, based on the value insured when the vehicle or insurance was purchased. Here, the amount of depreciation of the vehicle is not taken into account.

No-Claim Bonus Protection – During monsoons, a vehicle owner usually makes a claim for claims such as minor damage such as a broken bumper or damage to mirrors due to high winds or rain. Therefore, a no-claim bonus add-on ensures that a customer gets the claim even if there is a claim made within the previous year.

Ghosh adds, “Natural disasters / calamities are beyond human control and these calamities often happen when we least expect them. One cannot foresee or control such dangers, therefore, the practical way out of such situations must be prepared. “

Therefore, take the necessary precautions to stay financially protected and renew your auto insurance policy periodically.

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