Many parts of India have been experiencing extreme rainfall, which has led to waterlogged roads and flood damage to vehicles. Having the right insurance plan with appropriate coverage can help cover expenses caused by damage to your vehicle.
“It’s important to have comprehensive insurance because third-party cover alone doesn’t offer protection. However, while a comprehensive policy offers broad protection to your vehicle, it only protects up to a certain extent,” said Nitin Kumar, Head – Motor Insurance, Policybazaar.com.
Subhasish Mazumder, Head—Motor Distribution, Bajaj Allianz General Insurance, added, “Comprehensive car insurance covers third-party liability and own damage, offering protection from natural calamities such as floods, storms, cyclones, and earthquakes. Individuals should consider additional add-on covers to enhance the protection of their cars.”
This is where insurance add-ons come in and provide extensive coverage for your vehicle. Here are some of the add-ons that customers can consider.
Engine protection cover: Driving your vehicle through water-logged roads can lead to water entering your engine and causing severe damage, potentially leading to a hydrostatic lock. Coverage against this damage is not usually covered under your regular policy. These expenses can sometimes go into lakhs, which is why it’s always recommended to have engine protection cover.
Consumables cover: Monsoon damage can cause severe damage to your car’s lubricants, engine oil, and the gearbox. “Regular comprehensive policies do not provide protection for these damages, hence a consumables cover is recommended. This add-on covers the cost of items like engine oil, lubricants, nuts, bolts, and other small parts that are generally excluded from standard policies,” said Kumar.
Nil depreciation cover: The depreciation cost of car parts is usually deducted when car insurance claims are settled – and the policyholder has to cover the difference. This cover ensures that you get the full claim amount without any depreciation deductions.
Tyre protection cover: Your car’s tyres face the most damage caused by driving through waterlogged roads. This add-on can cover the costs to repair or replace your tyres. Given the likelihood of encountering debris and potholes submerged in water, this cover can prevent substantial out-of-pocket expenses.
Roadside assistance cover: The chances of your car breaking down during monsoon due to waterlogged roads and potholes are higher. You may get stuck in a stranded location with a broken down car. RSA helps your request for assistance wherever you are – the help reaches you within 30 mins or so.
Some things to keep in mind:
● Avoid starting your vehicle immediately if it has broken down due to water ingress.
● Ensure the water has receded before attempting to start your vehicle.
● If your vehicle breaks down, park it in a safe, covered area to prevent further damage.
● Inform your insurer immediately if your vehicle is affected by a flood.
“Be mindful of actions affecting your claim, such as not starting a submerged vehicle; instead, call your insurer or RSA (Road Side Assistance) provider immediately. Choose a reputable insurer with a strong claim settlement record and avoid selecting based solely on low premiums. These steps will help you secure comprehensive coverage and a smooth claims process,” said Mazumder.
Filing a claim for flood damage
Filing a claim for flood damage is straightforward. Inform the insurance company about the damage and gather as much evidence as possible, such as photographs or videos of the affected vehicle. You need to submit documents like the vehicle’s RC, driving license, policy document, and evidence of damage. Once the insurance company has surveyed the damage, the claim will be processed.
Protection against flood damage for EVs
Electric vehicles (EVs) are increasingly popular on Indian roads, but they come with their own set of vulnerabilities, especially during the monsoon season. Kumar says, “Unlike petrol and diesel vehicles, EVs have numerous electric components and a high-capacity battery, which are highly sensitive to water damage. Comprehensive insurance for EVs is crucial, and specific add-ons can provide additional protection.”
● Battery protection add-on: EV batteries can constitute 40 to 60% of the vehicle’s total cost. The Battery Protection Add-on covers any damage due to water ingress, power surges, or accidents. This is vital as the high replacement cost of EV batteries can be a significant financial burden.
● Charging equipment cover: This includes coverage for charging equipment such as cables, home charging stations, and other accessories. It is particularly useful during monsoons, as water-logged basements can damage charging equipment. It also covers the theft of these items.
● Enhanced roadside assistance: This includes towing services to the nearest charging station, which is critical given the less extensive EV charging infrastructure compared to petrol stations. This ensures that you are not left stranded if your vehicle runs out of charging.
Comprehensive car insurance with appropriate add-ons is crucial for those living in flood-prone areas. It offers financial protection by covering various types of flood-induced damage, ensuring you are not burdened with hefty repair bills. This coverage safeguards your vehicle against the severe impacts of floods, preserving its value and functionality.