Protecting Your Vehicle Against All Odds The Policybazaar Show

In the month of October, the Southern states of India were ravaged by heavy rainfall due to a tropical cyclone. While all the states witnessed heavy showers, Telangana hit the hardest. Flash flooding in Hyderabad had resulted in extensive damage and loss of life, with some nearly 37,000 families being affected. With Telangana Chief Minister pegging the overall loss at Rs 5,000 crore, insurance companies had seen a heavy inflow of claims of motor insurance claims.

The incessant rains and the following floods submerged the city's automobiles and caused massive damages to these vehicles, resulting in a deluge of insurance claims.

“There has been a huge rise in the number of claims from consumers to insurance companies and this is primarily because I a lot of waterlogging that vehicles had submerged,” said Sajja Praveen Chowdary, Business Head, Motor Insurance, Policybazaar.

“Insurance companies have seen these kinds of scenarios in the past. Insurers already had some kind of processes in place where they categorize claims into multiple categories-whether the vehicles just got into the water, has the water reached other parts of the vehicle, has the vehicle got entirely submerged in the water or it has been washed away. Accordingly, there are surveyors appointed for every category,” he added.

Experts feel that this situation has brought out the need for increased consumer awareness towards getting the right motor insurance cover with appropriate add-ons.

“We have seen that people take motor insurance policy basis what is being told but at the time of calamity they realize that either they don’t have an engine protector or a protection cover,” added Chowdary.

So, it’s important to get the right coverage along with your motor insurance policy, else your vehicle’s parts might not be covered at the time of claim. Customers should do thorough research and compare all options. Comprehensive policy with relevant add-on plans provides coverage during natural calamities. A comprehensive policy is a combination of third party cover as well as own damage cover. Although not mandatory, it is advisable for those who wish to protect their vehicle from damages should buy one. The OD component in comprehensive policies cover damages to vehicles but excludes depreciation on parts and certain specific types of damages.

A third party policy doesn’t cover damages to your vehicle. It covers damages to third party vehicles/individuals and the cost of treatment of third-party individuals.

A comprehensive policy with zero-dep on is highly recommended for new cars. It helps by covering the cost of depreciation applied against the replaced parts in a normal comprehensive policy. This add-on is offered by most of the insurers till 5 years of vehicle age.

People should ideally inform the insurance company as soon as possible. All the insurance companies have online claims teams which are available through various modes either online or inbound toll-free number. They should also keep visual evidence of the damage from day 1. Click photos and videos of your vehicle post damage in time.

A comprehensive policy doesn’t cover the depreciation of parts. A comprehensive cover must be coupled with an engine protection cover. A comprehensive cover takes care of accidental damages but if the damage is because of flooding and the water goes into the engine, then it won’t be covered unless you have an engine protection cover. People living in coastal areas, low-lying areas, or areas with heavy rainfall should opt for this cover.

An invoice protection cover covers the gap between the IDV and the total invoice value of the vehicle. It ensures that customers get the complete value of the newly bought vehicle in place of the sum insured. Add-ons have their own costs and customers can choose which ones to go for. Return to invoice cover increases the scope of the cover.

Customers should know the risks surrounding their living area to assess the right motor insurance plan. One should compare different policies and check what kind of coverage is being offered before buying.