NEW DELHI: In cities like Chennai and Mumbai, the onset of monsoon is almost always accompanied by the sight of submerged or damaged vehicles. The heavy downpour immensely impacts the vehicle and in many cases, makes the expensive vehicles useless. However, the most significant part of the problem is when the vehicle owner’s claims for compensation is dismissed by the insurance company on the grounds that the vehicles were damaged due to natural calamity.
So, how to protect one’s vehicle from all possible natural disasters? The answer is comprehensive vehicle insurance plans which provide options for add-ons. In general, there are two types of vehicle insurances - third party liability insurance and comprehensive insurance. While third-party insurance is made mandatory by law, it only provides protection to third-party for damages to property or injuries to an individual, where the policyholder is accountable for the accident.
On the other hand, comprehensive policies cover almost all type of damages. Along with offering coverage against third-party liabilities, it also covers the cost of repairing any damage caused to the insured car. The primary advantage of buying a comprehensive cover is that the owner can increase the scope of coverage with the help of add-ons. The most important add-on one should opt to protect vehicles from natural calamities is the Engine Protection Cover. This cover helps car owners claim compensation in case of engine-related issues to the vehicles due to water ingression, damage to gearbox and leakage of lubricating oil.
While the price of this add-on may increase the premium by around 8 per cent, it should be strictly preferred by people living in cities where waterlogging is common. In cases of other monsoon-related incidents such as tree fall, building collapse etc. one can go for Return to Invoice (RTI) add-on, which covers the gap between the insured declared value and the invoice value of the car. It’s an option that will get one the entire amount of loss including registration fees, road tax, and insurance amount in the event of a total loss or theft. RTI costs around 10 per cent more than the normal comprehensive policy. Roadside assistance is another important add-on that can help one if the vehicle gets stuck due to a break-down in the middle of the road.
The other important add-ons that are designed to provide complete protection are Nil Depreciation and Accessories Cover. While Nil Depreciation ensures that the age of the vehicle would not affect the claim amount paid for spare parts as in general covers depreciation is deducted from the claim amount before the final pay-off is made, the accessory cover comes in handy in case of expensive vehicles. In case water has damaged high tech parts such as LCD screens, music system, seats etc one can ask for compensation under this add-on.
The basic policy may not be enough
The comprehensive insurance policy for your vehicle covers accidental damage and loss emerging from theft. In order to prepare yourself for this monsoon you shall consider opting for some beneficial add-ons to your existing car insurance policy.
