Why might an insurance company deny your claim during the monsoon?Sandeep Saraf answers

"Third-party insurance typically covers any damage or death caused to a third party. To cover your own car, you need comprehensive coverage, which includes damage to your own vehicle, providing end-to-end coverage," says Sandeep Saraf, Policybazaar.com.


It's not just the monsoon season; having comprehensive and third-party insurance cover is mandatory for everyone. Let's discuss this important aspect, keeping the monsoon in mind. We know that cars are affected not only by rain but also by conditions like floods or waterlogging. What common mistakes do people usually make when they have motor insurance but not the additional cover needed during the monsoon season?
First of all, it's important to understand that the compulsory vehicle insurance that customers need is third-party insurance. Third-party insurance typically covers any damage or death caused to a third party. To cover your own car, you need comprehensive coverage, which includes damage to your own vehicle, providing end-to-end coverage. For example, if a car gets damaged in a flood and the customer only has third-party insurance, the damages to the car won't be covered. Therefore, having comprehensive coverage is crucial. A single flood can severely damage the vehicle and reduce its value. Looking at the rains that happened last year in Chennai and other parts of India, many vehicles were beyond repair. Without comprehensive coverage, the financial burden on the customer is high because the insurance company does not cover damages without it. Comprehensive coverage is essential when purchasing an insurance policy to ensure the car is covered in the event of a flood, cyclone, or other natural calamities.
In terms of coverage, keeping the monsoon in mind, what additional or complete add-on cover should one buy besides own damage cover?
A comprehensive policy does not guarantee that all flood-related damages will be covered. Multiple types of damages can occur during a flood, such as engine damage, electrical damage, interior damage due to water seepage, or gearbox damage. A normal comprehensive package covers these to some extent, but not 100%. We recommend a few add-ons for every customer purchasing a car insurance policy.

Engine Protection Add-On Cover: This ensures compensation for both the car and the engine. If the car gets stuck in a flood and the engine locks up, without this add-on, the claim may not be covered.
Roadside Assistance Cover: Important for situations where severe damage prevents you from driving the car to the nearest garage. This ensures the car is towed to the desired workshop.

Nil Depreciation Cover: This ensures that the entire cost of the claim is covered by the insurance company, except for filing charges, which range from Rs 1000 to Rs 2500. The entire vehicle claim cost is covered otherwise.

What is the cost of these add-ons along with the policy coverage?
For a 2019 registered Maruti Baleno, about 5 years old with a 25% NCB (assuming no claims for the last two years), a normal comprehensive policy premium is around Rs 4300 to Rs 4500. Adding the recommended covers (engine protection, nil depreciation, roadside assistance) would bring the premium to around Rs 7000 to Rs 7500. These premiums are competitive and provide comprehensive coverage, ensuring minimal out-of-pocket expenses in the event of a claim.

Clearly, comprehensive insurance policies may not be sufficient in excessive rainfall or flood scenarios, hence the need for these add-on covers. Why might an insurance company deny your claim during the monsoon?
There are several reasons an insurance company might deny a claim:
If you only have third-party insurance.
If you lack adequate add-ons, resulting in partial payment.
If you don't have a valid driving license or registration certificate.
If the vehicle was deliberately parked in a flood-prone area.

What about two-wheelers? Do they need different add-on covers considering the monsoon?
The insurance products for both cars and two-wheelers are quite similar. We recommend the same set of add-ons for two-wheelers.

Regarding your comprehensive plan, what should be the customer’s first step if their car breaks down during the monsoon?
Every customer should ensure they have a comprehensive policy with adequate add-ons like nil depreciation, roadside assistance, engine protection, and consumables cover. If the vehicle breaks down during a flood, the first step is to notify the insurance company and register the claim, requesting roadside assistance. Most insurers have a helpline for this service, and roadside assistance can arrive within 30 minutes to help you and tow the vehicle to the nearest workshop for repairs.



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