Get car engine insurance to keep you afloat during rains, say experts

Roadside assistance and outstation emergency add-ons are useful

Depending on which part of the country you live in, this year’s monsoon could hit your city within a week or month. Heavy rainfall poses added risks to your vehicle. First of all, you should have a comprehensive cover and not just a third-party one. In addition, get the pre-monsoon maintenance of your vehicle done and then buy a few add-on covers for holistic protection.

Animesh Das, senior director-motor underwriting, Acko General Insurance, says, “Insurance policies come with a few exclusions. If you have add-ons that cover those exclusions, you won’t have to pay for them out of your own pocket.”

Engine protection cover

A comprehensive insurance policy does not cover damage to the engine or gearbox. During monsoons, roads get waterlogged. Water enters the engine and damages it. The cost of repair can run into several lakhs.

Naval Goel, founder and chief executive officer (CEO), PolicyX.com, says, “The engine protection add-on will cover the cost of repairing your engine if it gets damaged due to ingress of water.”

Those who buy this add-on must keep one vital point in mind. “Don’t try to start the car once it has stalled. That is treated as negligence. If you do so, the insurer will not make a payout,” says Kapil Mehta, co-founder, SecureNow Insurance Broker.

According to experts, this is a must-have cover for the monsoon.

Ashwini Dubey, head-motor renewals, PolicyBazaar, says, “It can save you a substantial amount of money for a nominal premium, which generally ranges between 0.15 per cent and 0.2 per cent of the insurance declared value (IDV).”

IDV refers to the maximum claim your insurer will pay if your vehicle gets completely damaged, or is stolen.

Roadside assistance

This is another essential cover every vehicle owner must have.

“You wouldn’t want to be stranded on the road for hours waiting for help. This add-on ensures help reaches you in the minimum possible time,” says Dubey.

It is not expensive. You will have to pay barely Rs 100-500 for it.

Additional covers you may consider

In addition to these must-have covers, you may also buy a few, depending on your needs.

According to Mehta, owners of expensive cars in particular should buy the return to invoice, zero depreciation, and key replacement cover. He adds that they increase the cost of the cover considerably, and may hence be less relevant for owners of mid- and small-sized cars.

A return to invoice add-on will help you get the full invoice price of your vehicle if it is completely damaged (total loss), or is stolen.

The ‘key replacement’ add-on covers the cost of replacing the car key if it is lost, damaged, or stolen. In high-end models, replacing it can be an expensive affair.

‘Zero depreciation’ is another useful add-on. Normally, when a vehicle gets damaged and parts have to be replaced, the insurer pays the depreciated value of those parts. If you have the zero-depreciation cover, the insurer pays the full cost.  

Tyres suffer considerable wear and tear on Indian roads. During monsoon, the incidence of tyre bursts increases as they get damaged while being driven through puddles and potholes.

‘Tyre protector’ add-on is also available. It covers you for scenarios such as tyre and tube burst (without being involved in an accident), including labour cost.

‘Outstation emergency’ add-on is crucial for those who travel outside their cities regularly.

“It provides financial protection when you face an emergency situation, like an accident or car breakdown,” says Das.

If repair takes more than 12 hours, this cover will pay for the cost of hotel stay or of travelling to your destination.

Note that all these add-ons come with specific terms and conditions. Go through the policy wording before buying them.

DRIVE EVERY DAY? CONSIDER ‘DAILY ALLOWANCE’ COVER

•    When your car goes for repairs, you need an alternative mode of transportation  

•    In such a scenario, the ‘daily allowance’ add-on cover would pay you an allowance of, say, Rs 500

•    This is generally provided for up to two weeks, so that the cost of daily transportation doesn’t fall on you

•    The amount and number of days of payout vary from one insurer to another

•    People dependent on one vehicle should buy this cover     

Source: PolicyBazaar