Car Insurance Riders Created Exclusively for the Monsoon

Spare-part replacement or repair may be subsidized in a motor policy but add-on covers can aid in claiming the whole amount

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comprehensive motor insurance becomes useless in the monsoon season, especially if you happen to have an expensive car. A basic motor policy only pays for direct damages like an accident. Also spare-part replacement will provide you a fixed amount with a standard policy when you might have spent more. For example, you need to change your car’s windshield, you may get only Rs 3,000 from the insurance company when the new windshield would have cost you around Rs 10,000.

Add-on riders help you out with that. You don't have to go through any waiting period. Therefore, these riders can be purchased and used whenever there's a need.

Usually engine damages aren’t covered under a regular motor insurance policy. Cost: 0.5 to two per cent of the insured declared value (IDV) of the car. So, if a car’s IDV is Rs 5 lakh, you will have to shell out Rs 2,500 to Rs 10,000 for this cover.

In case of water logging, not just one or two parts but the whole electrical circuit could need replacing. This could be pricey and hence, an add-on policy would help.

In case of flooding, there are increased chance of finding yourself deserted due to engine damage. Roadside assistance cover in such a scenario comes to the rescue and the car is taken to the closest garage by the insurance company’s vendor. The cost of this add-on cover is 0.5 to two per cent of the car's IDV.

Then there are minor expenses (5-10 per cent) that consumers have to go through against wear and tear of parts — nuts and bolts, screws, washers, grease, lubricants, clips, AC gas, bearings, distilled water, and so on. The company becomes willing to cover expenses incurred towards “those items or substances of particular use which in the event of loss are either totally consumed or rendered unfit for further consumption” arising out of damage to the vehicle insured and/or to its accessories caused by any risks as covered under the policy. This will cost another 0.2 to 0.4 per cent of the car’s value.

After a car gets damaged due to the monsoon, the difference between the invoice price and the insured value of the car is greater than the price of a new car. The return to invoice cover fills the gap and makes an investment in a new car of similar model easy.

With time, no claim bonus (NCB) can be carried over to claim a discount of up to 50 per cent. But even a single claim can bring this down to zero. To prevent this from happening, you could purchase an NCB retention cover. Here, the customer's status of a no claim will be restored.

Remember to carry a copy of the policy document and the toll-free number in your car. Most car manufacturers provide free pre-monsoon check-ups, which prepare your car better. You could get anti-rust treatment and an under-body coat before the beginning of monsoon season. This will cost about Rs 4,000 to Rs 8,000 each, depending on the model.

Many add-ons are clubbed as a package by insurance companies. If you happen to buy all of these, you will pay a high premium. Know your needs and buy accordingly.