With the onset of the monsoon, it's natural for car owners to worry about their vehicles. Due to the bad drainage system in India, there are chances of vehicles getting stuck in water clogged road. Therefore, industry experts recommend people to have a proper car insurance in place. It is understood that any comprehensive car insurance cover losses or damages caused by natural calamities, such as monsoon rains or floods, cyclones, and hailstorms.
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Generally, the insurance companies cover both engine and upholstery damage, which could otherwise be very heavy on pockets.
But the question comes if a comprehensive policy enough to cover the damage?
The answer to this is 'no' because if the engine and/or its child parts receive any damage due to water ingression and oil leakage, a standard comprehensive policy doesn’t support it. This is because engine damage comes under electrical and mechanical breakdown.
So, experts suggest upgrading coverage with an add-on cover in case the policy does not cover electrical parts or engine damage. Customers can buy an engine protector add-on cover and an invoice-protection cover.
The engine add-on cover offers compensation for expenses incurred while fixing the indirect damage done by water ingression or leakage of lubricating oil leading to loss or damage to engine parts, differential parts, and gearbox parts. On the other hand, in the case of a total loss, the invoice-protection cover pays the difference between current invoice value of the car and the insured declared value (IDV).
Factors to consider before choosing the policies
Compare the plans
Before opting for a motor cover, evaluate the policies offered by different insurance companies based on multiple parameters like the Insured Declared Value (IDV), multiple add-ons available, inclusions and exclusions, premiums, no claim bonus, etc. While the offerings may vary from insurer to insurer, premium alone should not be the factor in choosing one insurer over other.
Consider customer service
Do a little research on the customer service of the insurer and see how the entire experience of the company is—from onboarding to claims experience. One can check how easy or complicated it is to buy the insurance plan or check customer reviews and ratings online. Choose a company that provides 24-hours assistance and addresses customer grievances quickly.
Check the claims settlement ratio
Insurers are mandated by the regulator to publicly share their Claim Settlement Ratio (CSR). CSR is the percentage of claims an insurer settled out of the total claims it received during the year.
Take note of cashless garages
If the vehicle is damaged, the owner would need to take it to a garage to repair it. Insurers tie up with many garages and offer a cashless facility to the policyholders. This means the amount would be directly settled with the garage by the insurer and owner would not have to pay the amount upfront and claim reimbursement later.
Here's a list of insurance companies' claim settlement ratio and number of cashless garages:
| Insurance Provider | Claim Settlement Ratio | Number of Cashless Garages |
| Royal Sundaram General Insurance | 92.66% | 3,300+ |
| HDFC ERGO General Insurance | 91.23% | 6,800+ |
| IFFCO Tokio General Insurance | 92.65% | 4,300+ |
| The Oriental Insurance Company | 91.76% | 3,100+ |
| Tata AIG General Insurance | 90.49% | 5,400+ |
| Bajaj Allianz General Insurance | 88.83% | 4,000+ |
| SBI General Insurance | 92.05% | 16,000+ |
| Reliance Car Insurance | 98% | 3700+ |
| Kotak Mahindra Car insurance | 82.81% | 1000+ |
(Source: Bankbazaar)
The claim process
If the vehicle is damaged by the water, policyholders should raise car insurance claims to avail a refund for the amount that was spent on the repair of the vehicle. Once the claim details are verified, the settlement process begins.
If policyholders are protected by comprehensive car insurance, they can file claims that amount to the insured declared value of the car. Claims can be filed for total damage to the vehicle, or for a refund of the amount spent on repairing the car when it is partially damaged.
In order to claim car insurance during monsoon, customers can call their insurers at the call center number and notify the claim. The number may be accessible on the website/app of the insurer. It may also be available in the email containing the policy PDF sent to the customer’s email address.
Customers can also email the insurance partner to notify a claim.
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