A comprehensive car insurance policy may not be adequate to protect your car from the damage that monsoons can cause. Unless you have certain specific additional coverages, your insurance company will not pay a penny to fix your engine if it’s flood damaged. In case you need to change your seats or replace your windshield, the insurance company usually pays only a part of it. That’s where add-on covers or riders come in handy.

Why are damages more frequent in monsoons?

“During heavy rain, waterlogging or floods, water can enter the vehicle, seep into the engine and damage it. This is one of the most common claims during monsoons. The engine is one of the most expensive parts of a vehicle and repairing or replacing can be expensive,” Kunal Jha, Head – Motor Product and Actuarial, Go Digit General Insurance.

He added: “Trees or poles uprooted due to heavy rain can seriously damage the exterior of a vehicle. Multiple such instances are witnessed during heavy rain because many vehicles in India are parked on the roads.”

Rahul Mishra said, “Even if the car is not submerged in water, heavy rain can cause water damage to the car’s upholstery and electrical wiring, resulting in costly repairs.” said Rahul M Mishra, Co-Founder and Director, Policy Ensure.

When it rains heavily, visibility on the roads can be significantly reduced, leading to accidents. Many experts added that the risk of skidding and hydroplaning increases as the roads become slippery.

How auto insurance add-ons cover plug the coverage gap?

Add-ons are optional coverage that can be added to a comprehensive car insurance policy to enhance your coverage and provide additional protection. Here are four essential additions during the monsoon season.

Why is it critical to add an engine protection cover?

Purchasing an engine protector add-on is essential to protect your engine safeguard your car engine from losses due to liquid ingress. If you try to start your car over and over again while it is submerged in water, the car could get stuck. Engine repair can be expensive. This engine damage is not paid for under a normal car insurance policy because it is considered collateral damage. “An engine guard covers your car in the event of a hydrostatic lock, where water can seep into the car’s air valve and block the engine,” said Nitin Kumar, Head – Car Insurance, Policybazaar.com.

Roadside assistance comes to your rescue during an emergency

Vehicle breakdowns are more common during the monsoon season. In case you are stranded in a waterlogged area and unable to move your vehicle, opting for the additional coverage of 24/7 roadside assistance can be helpful, said Pooja Yadav, Chief Product Officer, Zuno General Insurance (Erstwhile Edelweiss General Insurance).

Animesh Das, Chief Underwriting Officer – ACKO, adds that this coverage provides instant towing services by a professional that prevents further damage to your vehicle.

Zero depreciation Cover ensures full coverage in parts replacement

If you have zero depreciation coverage, you will be fully reimbursed for the damage, not just the depreciated value of the damaged components. said Aftab Chaz, Associate Director and Head of Business at Elephant.in (Alliance Insurance Brokers)

Consumable add-on coverage ensures no payment even for consumables

This add-on covers the cost of consumables such as engine oil, coolant, and brake fluid, which are required during repairs due to damage caused by flooding, waterlogging, or accidents during the monsoon season.

While there are other add-on covers, the above-mentioned are the most used by consumers due to their relevance and significance during monsoons.

Who Should Buy These Extra Monsoon Auto Insurance Coverages?

These riders come with an added cost. Should all car owners buy these additional covers to protect their cars during the monsoon season?

“It is important that vehicle owners carefully consider their needs and the location in which they are staying before selecting any additions,” Chaz said.

“If you live in an area that is prone to flooding or waterlogging during the monsoon season (such as Mumbai, Goa, Bangalore) then the added motor protection and consumables cover can be particularly useful as it provides coverage for damage to the engine and consumables,” said Mishra.

Amit Goel, director and principal officer of Raghnall Insurance Broking & Risk Management Pvt, said: “Coastal regions often experience heavy rainfall and face risks of waterlogging and high levels of humidity. Water damage and the corrosive effects of salt water can The motor protection cover and consumables cover can help mitigate the risks associated with these conditions.”

Goel added: ” Places with inadequate drainage infrastructure can lead to water accumulation on roads, increasing the likelihood of accidents due to slippery surfaces. In such areas, a zero consumption cap can be beneficial as it ensures a higher payment for spare parts. regardless of consumption.

If you live in an area where immediate assistance during emergencies, such as towing or on-site repairs, is rare or slow to arrive, having roadside assistance coverage becomes a necessity. This coverage provides peace of mind and guarantees immediate assistance in the event of a breakdown or accident, especially in adverse weather conditions.

“People living in hilly areas also witness cases of landslides during monsoons. It makes a lot of sense to consider a comprehensive motor cover with suitable add-ons to give your vehicle full protection,” Jha said.

Today’s uncertain environment has made it necessary to have an insurance policy at your disposal. While taking care of your financial needs, it also provides peace of mind for you and your loved ones. However, for any person who is looking forward to purchasing a policy, understanding the general insurance jargon and terminologies can be hard.

In a bid to procure the maximum advantages from your policy, it is necessary for an individual to know the basic technical words, which would not only help them to understand their policy in a better manner but also aid them in purchasing a good policy. Furthermore, regardless of how daunting the insurance contract appears, following a few of the recommendations can help ease the process of understanding the policy terminology.

Self-learning through research

Self-learning is an approach to gaining knowledge about any subject where the individual makes the effort to explore the necessary resources. This concept can be applied to learning about general insurance and its terminology as well. First and foremost, you can familiarise yourself with basic insurance terms, which include premium, coverage, insurer, policyholder, deductible, and more.

Then you can go to online resources, such as insurance websites, via search engines to gain information about these jargons. On the websites, you can also engage in conversations with AI chatbots that can provide valuable information regarding the insurance. This approach is efficient as it provides a certain amount of independence to learn, where you can explore different types of insurance and their respective jargons at your own pace and make an informed purchase decision.

Studying the insurance documents

An insurance policy document is a reference document that contains all information regarding cover (the scope of protection provided by the policy), insured (the person or entity covered by the insurance policy), insurer (the insurance company that provides the coverage), premium paid (The amount paid to the insurance company), policy term (the duration of the policy), and more.

The insurance firm issues the document to detail the terms under which the policy is offered. Therefore, while selecting a policy, it is advised to read the policy documents, which also include terms and conditions. In these policy documents, a person should pay attention to key details such as coverage limits, waiting periods, exclusions, claim procedures, and more.

Consult an insurance advisor

Despite educating yourself through online research or reading the general insurance documents carefully, it can sometimes be daunting to understand specific terminology while considering the right policy. In such cases, it is advised to consult an insurance advisor. With their guidance, you not only get accurate and updated information about the insurance but can also get personalised guidance based on your needs.

They are the experts who have in-depth knowledge about different types of policies and their terminologies, which are difficult to grasp. What policy advisors can do for you is break down the policy language, explain key provisions, and ensure that you understand what you are purchasing. While you can learn about different types of policies and their jargon, you can also utilise their expertise to gain maximum coverage and recommendations.

All things considered

It cannot be understated that for an ordinary person, understanding general insurance jargon and terminology can be difficult. Moreover, there are numerous types of insurance, clauses, terms, and conditions, which can be overwhelming to comprehend. However, owing to technological advancements, internet penetration, and smart devices, customers are able to research insurance policies online. Moreover, they also have easy access to insurance documents today, from which they can gain more knowledge before making a purchase.

However, the most efficient method is to contact an insurance advisor or point of sales person (PoSP) who can provide their knowledge of the technical jargon and also provide advice, recommendations, and personalised guidance on insurance policies. With a flourishing insurance market in India, there are several solutions available for customers to explore, and a lack of information on the subject should never let them be deprived of its benefits.

Recently, we interacted with Mr. Pankaj Vashistha, Co-founder & CEO, Policy Ensure – a unique platform that has taken insurance business to a new dimension all together paving way to a BHAVI BHARAT, in which not only everyone is insured but also empowerring self-employment in Insurance Entrepreneurs business by harnessing demographic dividend of great India.

Here are the interview highlights:

1. Can you give us an overview of Policy Ensure and the services it offers?

Ans. Policy Ensure is an insurance aggregator-broker based out of Gurgaon that distributes general insurances and intends to level up the insurance focus in India especially in tier 2 & tier 3 cities. Policy Ensure has built up its unique phygital model as compared to the other broker houses, that emphasis mainly on technology driven approaches.

Our company believes that distribution along with a little assistance is important for expanding insurance coverage, and technology functions as a facilitator rather than a primary factor in how business is conducted. We understand the importance of openness in the Insurance Entrepreneurs sector and focus on locating the problems of mistrust & mis-selling that have come to light over the years.

Policy Ensure uses a phygital model, which entails having a physical presence at each area they serve, to accomplish its aims. Customers’ trust is increased and personalized interactions are made possible by this physical presence. The user-friendly technological platform that Policy Ensure offers makes conducting business easier and guarantees openness throughout the insurance transaction.

We combine distribution knowledge, technology facilitation, and transparency with our customers. In order to improve insurance penetration in India and meet the needs of customers in tier 2 and tier 3 cities.

2. How does Policy Ensure differentiate itself from other insurance providers in the market?

Ans. Policy Ensure is different from the other insurance providers in India as we adopt a distribution-driven strategy as compared to other broker houses that focus only on the digital technological approach to business that usually caters to the citizens in tier 1 cities. However, aligning with India’s vision of financial inclusion by 2030. Policy Ensure has created a unique phygital model where physical presence empowers trust and technology provides transparency and better choices.

3. Can you walk us through the process of how Policy Ensure helps customers find the best insurance coverage for their needs?

Ans. One of the main problems the insurance sector faces is mis-selling, which has been addressed by Policy Ensure by streamlining the insurance process for our customers. They must be fully aware of the insurance products they are buying since they are intricate contracts with a range of coverage alternatives.

Technology used by Policy Ensure gives customers a transparent and user-friendly platform. Customers have access to digital contracts using this technology that describes the details of the insurance policy, including coverages and premiums. This enables customers to make informed decisions based on their own requirements and preferences. 

4. What kind of insurance policies does Policy Ensure offer? Are there any specific industries or sectors that you specialize in?

Ans. With the aim of making India independent and secured, Policy Ensure has taken an initiative to increase insurance penetration in the country and being a catalyst for the growth of small towns by using the PHYGITAL way. We look at insurance distribution across General insurance specific to motor, health, accidental, cattle and home insurance for the tier 2 & tier 3 market. Keeping in mind the 2015 IRDAI form of licensing, the brand allows tier 2 & tier 3 citizens to become PoSPs and encourage the soft skills of entrepreneur ships for them. 

5. How has Policy Ensure adapted to the challenges posed by the COVID-19 pandemic? Have there been any changes in customer behavior or needs that you have had to respond to?

Ans. Policy Ensure has actively responded to these changes by prioritizing customer-centric solutions and leveraging technology to deliver seamless insurance experiences. By adapting swiftly, Policy Ensure has positioned itself as a trusted partner in the new normal, catering to the evolving needs and expectations of customers in India’s insurance market with the help of its POSP partners and sales /customer service team available locally.

6. What are some of the biggest challenges that Policy Ensure faces in the insurance market, and how do you plan to address them?

Ans. The primary challenge that we faced was navigating the regulatory environment of the insurance business that was ongoing in the current insurance ecosystem. It was essential for Policy Ensure to verify compliance with the regulatory standards since the market was so heavily regulated, and doing so required a time-consuming procedure.

However, we were able to overcome the obstacle by following rules and regulations and ensuring everything was done correctly.

The second issue we faced was internet accessibility, especially in tier 1 and tier 2 ranked cities. For their company concept, which blended a physical presence with technology, having a dependable internet connection was essential.

The government’s increased attention on the insurance industry and the expansion of telecom businesses have both increased internet usage, which has benefited us in business operations.

Policy Ensure has been able to establish itself in the market and broaden its reach by overcoming these difficulties.

7. How does Policy Ensure plan to expand and grow its business in the coming years?

Ans. The long-term objective of Policy Ensure is to overtake all other insurance distributors in India. Within the next three years. We intend to grow from 32 sites to 300 locations in the next two years. We are resolute that distribution is essential to any company’s success. In order to build a solid distribution network and broaden our client base, we are concentrating on increasing our physical presence in various locations.

We will keep investing in physical sites all throughout India and prioritizing our distribution approach in order to meet our long-term objectives.

We Strive to efficiently contact clients in several cities and towns by spreading insurance more widely and establish ourselves as the go-to option for insurance distribution.

8 . Finally, what do you think sets Policy Ensure apart from other companies in the insurance industry, and why should customers choose to work with you?

• Customer-Centric Approach: Policy Ensure places utmost importance on customer satisfaction and aims to provide personalized and tailored insurance solutions. The company takes the time to understand each customer’s unique needs and offers comprehensive coverage options that align with their requirements
• Wide Range of Insurance Products: Policy Ensure offers a diverse portfolio of insurance products, ranging from health and life insurance to property and vehicle insurance. This extensive range ensures that customers can find suitable coverage for their specific needs, all under one roof
• Innovative Phygital Distribution Network: Policy Ensure has pioneered the concept of a “Phygital Insurance Distribution Network,” which combines the convenience of digital platforms with the trust of physical presence. This innovative approach provides customers with a seamless and accessible insurance buying experience
• Strong Partnerships: Policy Ensure has forged strategic partnerships with leading insurance companies in India, enabling access to a wide network of insurers and ensuring a robust range of insurance offerings. These partnerships also contribute to the company’s credibility and trustworthiness
• Expertise and Experience: Policy Ensure is backed by a team of experienced Insurance Entrepreneurs who possess in-depth knowledge of the industry. Their expertise allows them to guide customers effectively, offer sound advice, and address any insurance-related queries or concerns
• Transparency and Trust: Policy Ensure operates with utmost transparency, ensuring customers have a clear understanding of policy terms, coverage, and claims processes. The company strives to build trust with customers by providing honest and reliable insurance solutions

Motor insurance is an essential aspect of responsible vehicle ownership, providing financial protection against unforeseen accidents, theft, and damages. While standard motor insurance policies offer coverage for common risks, they may not always address specific needs or adequately protect policyholders in certain circumstances. This is where motor insurance riders come into play, offering additional coverage options tailored to individual requirements. In this article, we will explore the importance of motor insurance riders and highlight their benefits in enhancing the protection offered by standard policies.

Understanding Motor Insurance Riders:

Motor insurance riders, also known as add-ons or endorsements, are supplementary coverage options that policyholders can purchase to extend the protection provided by their base motor insurance policy. These riders offer customized coverage for specific risks or situations that may not be adequately addressed by a standard policy. By opting for riders, policyholders can ensure they have comprehensive coverage that aligns with their unique needs.

Enhanced Coverage for Unforeseen Events:

Motor insurance riders provide additional coverage for a range of unforeseen events, offering policyholders peace of mind and financial protection. For instance, a common rider is the “Personal Accident Cover,” which provides compensation in the event of injury or death resulting from a road accident. This rider goes beyond the standard policy’s coverage and helps policyholders and their families during challenging times.

Protection against Natural Disasters:

Natural disasters can cause significant damage to vehicles, leaving policyholders with substantial financial burdens. With the increasing frequency of extreme weather events, riders such as “Natural Calamities Coverage” or “Acts of God Cover” have gained importance. These riders ensure that policyholders are protected against losses resulting from events like floods, earthquakes, or cyclones, which may not be covered under a standard policy.

Enhanced Vehicle Protection:

While standard motor insurance policies provide coverage for accidental damages, riders can further enhance the protection offered. For example, the “Zero Depreciation Cover” ensures that policyholders receive the full cost of repairs or replacement of damaged vehicle parts without accounting for depreciation. This rider is particularly beneficial for new vehicles or those with expensive parts, reducing the out-of-pocket expenses for policyholders. Similarly Hydrostatic cover and or Engine Protection Cover as insurance co may name it, takes care of engine seizure and or replacement in case water enters silencer in water during rainy season. Standard policy excludes it. Consumables like engine oil, filters etc are excluded in standard policy which can be covered by opting this cover. Return to invoice, Registration Charges of RTO , Key Replacement, and NCB Protection are other popular add on covers which standard policy excludes but the car owners may ask for these coverages.

Coverage for Specialized Accessories:

Many vehicle owners invest in aftermarket accessories, such as audio systems, alloy wheels, or customized fittings, to enhance their driving experience. However, these accessories are often not covered under standard policies. By opting for a “Special Accessories Cover” rider, policyholders can protect their investments and ensure they receive compensation for any damages or theft of these specialized accessories.

Extended Roadside Assistance:

Breakdowns or mechanical failures can occur unexpectedly, leaving drivers stranded on the road. While some motor insurance policies offer limited roadside assistance, riders such as “24×7 Roadside Assistance” or “Emergency Towing Coverage” provide extended services, including towing, fuel assistance, tire changes, and even accommodation arrangements in case of an immobilized vehicle. These riders prove invaluable in times of distress, providing immediate help and convenience.

Cover for Legal Expenses:

In the unfortunate event of a legal dispute arising from a motor accident, policyholders may incur substantial legal expenses. To safeguard against such costs, riders such as “Legal Expenses Coverage” offer protection by covering legal fees, court proceedings, and associated expenses. This additional coverage ensures policyholders can pursue their rights without facing undue financial burdens. Motor insurance riders play a crucial role in enhancing the coverage provided by standard motor insurance policies. By understanding and exploring these additional coverage options, policyholders can tailor their insurance to meet their specific needs and mitigate potential risks. Whether it is protecting against unforeseen events, covering natural disasters, enhancing vehicle protection, or extending roadside assistance, riders offer valuable add-ons that significantly enhance the overall value of motor insurance. As responsible vehicle owners, it is essential to carefully assess our requirements, consult with insurance experts, and consider the available riders to ensure comprehensive and adequate coverage for our vehicles.

Being a predominantly agrarian society, India heavily relies on livestock for agricultural activities, mostly in rural areas. Including cows and buffalos, cattle play a crucial role in the nation’s dairy industry, contributing majorly to milk production. So, similar to various other types of property or investment, cattle are susceptible to risks and uncertainties. To keep such risks at bay and safeguard the interests of farmers, cattle insurance is emerging as a valuable tool in India.

Let’s explore the essential aspects of cattle insurance in India, comprising its benefits, coverage, and process, as well as the option of acquiring such policies online.

What is cattle insurance?

Often referred to as cow insurance as well, cow insurance is a risk management tool that provides financial protection to cattle owners against the loss of their livestock owing to various perils. A form of livestock insurance, it covers risks like accidental death, theft, death, and natural calamities. 

What are the key advantages of cattle insurance?

Cattle insurance offers many essential benefits to farmers and livestock owners. Here are the key benefits of opting for cow insurance online that proves to be an added advantage for cattle owners:

Providing Financial Security

Since livestock is a highly valuable asset for farmers, they often have to face severe financial consequences in the event of any loss or damage to their cattle. This is precisely why getting their cattle insured provides the livestock owner with an indispensable safety net. Opting for cow insurance provides compensation to farmers against any losses incurred, ensuring financial stability, especially in challenging times.

Protecting Livelihood

Cattle and livestock farming often serve as the main source of livelihood and income for several rural households. Cattle insurance enables farmers to protect and sustain their income stream even in the face of adverse conditions. 

Mitigating Risks

Cattle face various heavy risks such as diseases, theft, and accidents. Cow insurance online helps mitigate such risks by providing coverage against these unforeseeable setbacks, allowing farmers to focus on agricultural activities without hindrances and constant worries.

Accessing Credit

In addition to the aforementioned benefits, cow insurance also enables farmers to access credit facilities from financial institutions. Lenders tend to have a high chance of offering loans or credit to farmers who have insured their livestock since it mitigates the risks associated with lending. 

Coverage under Cattle Insurance

Cow insurance policies in India typically provide coverage for the following risks:

1. Accidental Death: The policy compensates the owner in case of the animal’s accidental death due to causes such as accidents, falls, or drowning.

2. Disease and Illness: Insurance policies cover the medical expenses incurred for treating cattle, often prone to diseases, including veterinary services and medication costs.

3. Theft: In the unfortunate event of cattle theft, the insurance policy compensates the owner for the market value of the stolen animal.

4. Natural Calamities: Cattle insurance also provides coverage against natural calamities such as floods, earthquakes, cyclones, or lightning strikes that may result in the death or injury of the insured animal.

Obtaining Cattle Insurance Via A Certified Broker

There are multiple ways in which farmers can obtain cattle insurance. While online platforms are a popular choice in metro-cities and nearby areas, the lack of internet penetration and unavailability of smart devices especially in rural areas makes it ineffective for farmers in such regions. This is where Policy Ensures unique Phygital business model, which enables insurance access to reach the grassroots levels in India, has proved to be a major game-changer for farmers.

Farmers can leverage Policy Ensure physical presence on the ground through a certified Point of Sales Person (PosP) to understand all available options in their bid to find the cow insurance that successfully caters to their specific needs. Amid the lack of awareness and non-availability of credible infrastructure, farmers in the non-metro regions can achieve financial stability on the back of a tailored cattle insurance policy in the event of an untimely death of their cattle or covered diseases.

Insure Your Cattle With Policy Ensure

An important part of the Indian economy, cattle rearing provides livelihood to many marginal, small, and medium farmers in the country. That’s why cattle insurance remains pivotal for farmers and livestock owners to safeguard their investments and, in turn, their livelihoods. But, lack of awareness and internet penetration in rural areas often denies farming communities of such regions an opportunity to get the best out of cattle insurance which can further trigger financial instability during unfortunate events pertaining to their cattle. With Policy Ensures certified PosPs, farmers in non-metro cities can now gain access to professional advice and expertise from reliable insurance advisors who can guide them in procuring the cow insurance they truly need.

Here is an unsolicited advice for motorists across the country but especially to those living in many parts of the rain-ravaged North India – please do not try and start your vehicles, either two-wheelers or four-wheelers, if they are submerged in rainwater for some time. Now, not many people know about this fact, but insurance companies will reject any claim of repairs for engines/vehicles damaged if they were submerged in rain or flood waters for any amount of time.

What this means that you will have to spend through your nose for engine repairs that could run into thousands of Rupees, depending on the damage. And of course, the time taken at the mechanic workshop given the long queues of vehicles requiring attention after rainwater recedes.

Then tremendous feel-good factor that envelopes us all when buying a new (or even second hand) vehicle – a scooter or a car or anything on wheels, prevents us from finding out the many details that eventually costs us a lot. And unless one has the right questions, it is not possible to get the right answers and advice, as is the case with car insurance claims.

What the car companies and insurance companies do not tell is that even the car manufacturers put in a disclaimer that their warranty runs out if water seeps into the engine, just like the mobile phone companies do not entertain claims if the rainwater induced moisture enters the mobile instrument.

Now here comes a practical advice from a general insurance company owner to the countless people whose vehicles got submerged in rain waters. Hundreds of thousands of people across North India today have their vehicles submerged in waters, which are going to remain like this till water recedes in few hours to many hours, depending on the intensity and duration of rain.

Rahul M Mishra, Co-Founder, Policy Ensure, told News24online that instructions from the car manufacturers and insurance companies are clear that if water comes to the radiator level do not start the car. The moment water enters the engine, then the whole engine becomes useless, and in those cases the claims are rejected if the vehicles have normal insurance cover.

“But perhaps after Chennai floods or so, many insurance companies have come up with add on cover for engine protection. Nowadays it has become a habit when you buy a new vehicle the dealer gives engine protect also as an add on, and it is advisable that one takes it even though one may have to pay an extra so that one is not denied insurance claims,” Mishra said.

Before the advent of engine protect as an add on service too, the insurance companies ought to have considered the claims even for vehicles that were submerged in water, consumer organisations argued but in practice denial was the norm.

“Even today, even if one has not taken add on of engine protect, people can get the insurance claim as long as they have not started the car that stalled in rainwater,” Mishra said advising motorists not to try and start the vehicle (two-wheeler to four-wheeler) but inform the car dealer and insurance company and wait for them to respond with mechanics.

If anyone lies that they did not start the vehicles, there are expert mechanics employed with the insurance companies claims department who can find out exactly whether there were attempts to start the vehicle, Mishra said.

Even during normal rainless days if the vehicle stalls driving through waterlogged areas, best is to avoid trying to start it. Instead seek professional help through the insurance company, which these days offer a range of services, onsite and on the road assistance etc, Mishra said.

Motor vehicles is one aspect and there is some chance of cutting losses by getting claims as by law vehicles must be insured, in some form or the other.

Just imagine the losses people have, say in Himachal Pradesh or Uttarakhand, where people have lost their houses to the devastation caused by the floods. “Most of the houses and shops and establishments are not insured, and it breaks my heart to see that people have suddenly been dragged onto the streets,” Mishra said urging the government to think of ways and means to increase insurance cover for properties.

“Of course, it can only be done through education and creating awareness. People may think that the insurance companies are scaremongering to increase their business, but just think of how much the people would have been saved, at least a major portion of their life’s belongings if only their properties were insured,” the insurance company founder said.

Now, the full extent of the damage in terms of money caused by the nature’s fury, unleashed in the form flooding that destroyed properties and damaged vehicles, will be known only after normalcy returned.

Till then, be wise and listen to the insurance experts, and save money and mental peace.

Over the past year, health insurance premiums have surged between 10 and 25 per cent, according to industry experts. Customers must make use of all available strategies to cope with the escalating health insurance premiums. Rising Claims A key contributor to the surge in health insurance premiums is the increase in the incurred claim ratio. Individual health insurance, insurance policy. ICR has NCR.

In the case of cars being swept away due to torrential rains, you will have to file an FIR for loss of vehicle in insurance claims. Typically, the vehicles will be located after a few days. If not, this will be treated as a total loss and insurers will pay out the insured declared value (IDV) of the car. If it is located and the cost of repairs is more than 75 percent of the IDV, again, amount equal to the IDV will be paid out.

A car untraceable due to floods could end up as a total loss claim

The terrifying visuals of cars being washed away and houses collapsing due to floods in Himachal Pradesh and Uttarakhand, along with waterlogged streets in Delhi and Gurugram, have once again brought to fore the havoc that torrential rains can wreak on lives and properties.

General insurance companies are bracing themselves for claims from the region. “We have received around 50-55 claim intimations from car owners so far. Torrential rains hit these states over the weekend. So, our sense is that many people wouldn’t have ventured out. From that perspective, insurance claims impact could be limited, but it’s too early to tell. Perhaps, the picture will be clearer in another two to three days’ time,” says TA Ramalingam, Chief Technical Officer, Bajaj Allianz General Insurance.

Also read: Bengaluru floods: General insurers brace for more claims as incessant rains cause damage to vehicles

He, however, does not expect too many home insurance claims. “Home insurance penetration in India is minuscule – less than one percent. So, claims may not be significant on that front either,” he says.

Car swept away in floods? File for total loss claim

If your car got swept away by floods and cannot be recovered – or is recovered with significant damage — chances are that insurers will treat this as a case of total loss.

Typically, if the cost of getting your vehicle repaired exceeds 75 percent of its insured declared value (IDV is your car’s ex-showroom price minus depreciation in line with its age), an amount equal to the IDV is paid out.
“If it is less than this limit, there will be a sanction for repairs and the cost will be reimbursed,” adds Ramalingam.

However, in situations where there is massive damage, insurers could use certain other parameters to ascertain whether it can be treated as a case of total loss or not.

“Insurance companies and OEMs (original equipment manufacturers) come to an agreement on the quantification of loss, depending on the level of water submergence– whether it is up to the floor level or dashboard level. If it is dashboard level and above, it is considered a total loss. In the case of high-end vehicles, electronic parts are located at lower levels and the quantum is decided accordingly. This also varies from model to model. So, the entire IDV minus the excess (or compulsory deductible) is paid out to the policyholder,” says Nitin Deo, Chief Technical Officer, Zuno General Insurance.

The compulsory deductible is the amount that the policyholder has to bear out of her own pocket, depending on the car’s engine capacity – Rs 2,000 if it exceeds 1500cc and Rs 1,000 if it doesn’t – before the insurer settles the claim.

To file a claim, an FIR and police investigation will be necessary. “If the insured car has been swept away and cannot be located, there will not be any evidence to speak of. A simple FIR may not always be enough. Insurance companies could insist on a non-traceable certificate from the police, which is issued after an investigation of the circumstances surrounding the disappearance of the vehicle in the floods,” explains Hari Radhakrishnan, Regional Director, First Policy Insurance Brokers.

Zero depreciation, engine protect covers to the rescue

Besides causing damage to the car, rains and water inundation can also lay your car’s spare parts to waste. In such cases, the claim will be paid out after subtracting the applicable depreciation mentioned in the policy. For instance, on plastic parts, the rate of depreciation will be 50 percent, while it will be 30 percent for fiberglass parts and nil for glass.

For all other parts, the rate of depreciation is linked to the age of the vehicle. It is five percent for vehicles that are six months to one year old and can go up to 50 percent in case of vehicles that are over 10 years old. “Most policyholders purchase a zero-depreciation add-on. This ensures that the actual value of the parts will be paid out,” says Deo. “Some policyholders also buy the consumables add-on to cover the cost of oil, and nuts and bolts, for example. So, if you have purchased these add-ons, the entire loss you have incurred on the car minus the deductible will be paid out.”

An engine protect cover comes in handy if you have to drive through waterlogged roads. “Many policyholders tend to think that if their engine is damaged due to water ingress, the claim will be paid. However, this is not the case, unless you have purchased an engine protect add-on,” says Animesh Das, Chief Underwriting Officer, Acko General Insurance.

Grey area around innovative pay-as-you-use add-ons

Since July 2022, several general insurance companies have been offering innovative, optional riders such as pay-as-you-drive and motor floater add-on covers. For instance, if you were to buy the pay-as-you-use rider, you can save on premiums if your car usage is limited. You can activate or deactivate the insurance claims cover typically through the company’s app, depending on your usage.

What if you had switched off the coverage when floods swept away your car? “Every insurer has different terms and conditions for add-ons such as pay-as-you-use or pay-as-you-drive. However, typically, the switch-on, switch-off feature will come into play in case the policyholder was driving a car. If it was parked in the garage and it got flooded, then switch-on, switch off will not apply. Moreover, since the damage is caused by external factors such as floods, the add-on terms and conditions will not come into play and the claim will be paid,” says Das. Deo, too, reiterates that such claims will be paid.

This, though, remains a grey area with differing views. Finally, it will boil down to your policy’s terms and conditions. “The pay-as-you-use rider allows the policyholder to activate or deactivate coverage for specific periods. If the pay-as-you-use rider was deactivated at the time of the incident, it means that the coverage for that period may not be applicable,” says Pankaj Vashishtha, Founder and CEO, PolicyEnsure, an insurance broking firm. He, however, recommends making enquiries with the insurer concerned as individual policy clauses could vary.

“The claim will likely be rejected. This is because the pay-as-you-use rider benefit is designed to provide coverage only when the benefit is turned on. If the benefit is turned off, the car will not be covered by insurance,” says Ashish Lath, Business Head, InsuranceDekho, an insurance broking firm.

However, he points out that there could be some exceptions to this rule.“For example, if the individual can prove that she turned the pay-as-you-use rider benefit off accidentally, the claim may be approved. Additionally, some insurance companies may have a grace period, during which the claim could still be approved even if the pay-as-you-use rider benefit was turned off,” he adds.

It is important to have covers for business interruption and ensure that home insurance also includes damage caused by floods

The current spell of heavy rains lashing parts of northern India has once again brought to the fore the importance of insurance coverage for your business and personal assets. Homeowners should ensure their home insurance includes protection against flood damage, while businesses should have comprehensive property insurance.

Currently, there isn’t specific insurance that covers flood-related damages explicitly, and some insurers cover floods as part of the Standard Fire & Special Perils policy. Fire insurance typically covers flood damage, inundation, landslides, rockslides, storms and cyclones.

Business interruption insurance can help businesses recover from financial losses caused by temporary closures due to floods. Jagjeet Siddhu, Chief Distribution Officer, Kotak Mahindra General Insurance, said, “Various insurance covers include storm, tempest, flood, inundation, landslide, rockslide, earthquake, etc. Earthquake is available as an add-on under “Standard Fire and Special Perils” policy. Under MSME products like Sookshma Udyam/Laghu Udyam Suraksha, the same is available as an inbuilt cover. Another important add-on is Debris removal, as flood waters carry a lot of debris/silt and involve costs for its removal. Dewatering expense is also available as an add-on. These add-ons are offered with sub-limit.”

Suitable policies based on value at risk may be purchased by Individuals and Businesses covering their fixed assets in their area of operation. It is recommended to have adequate protection to safeguard against flood risks as the damage it could cause to property is significant. Major claims reported are due to damage to stock, machinery, boundary wall, etc.

Besides, one can opt for the Bharat Griha Raksha policy. The insurance covers your home and home contents, that is, articles or things in your home. Under this policy, the insurance company pays you for the losses, including damage or destruction of the building of your home and articles or things in it. The policy covers earthquakes, volcanic eruptions, or other convulsions of nature.

Comprehensive motor insurance is also essential to cover flood damage to vehicles. The policy typically offers coverage against accidents, theft, and damage caused by natural disasters like floods. However, the extent of coverage may vary depending on the specific policy and insurance provider. It’s significant to vigilantly read the terms and conditions of your policy to understand the coverage provided.

Vivek Chaturvedi, CMO and Head of Direct Sales at Digit Insurance said, “In addition to a comprehensive cover, people living in areas prone to floods must consider buying add-ons like engine and gear box protection cover, zero depreciation cover, consumable cover, roadside assistance cover, and most importantly return to invoice cover. We often see many vehicles getting damaged beyond repair due to floods or vehicles getting completely totalled. Such claims are considered as total losses or write-offs where the salvage cost of the vehicle exceeds its insured value. Buying add-ons like return to invoice cover can help you get the amount mentioned on the invoice, not just the vehicle Insured Declared Value (IDV). 

Rahul M Mishra, Co-Founder and Director of Policy Ensure, said, “With the increased risks during floods, such coverage becomes even more important to protect individuals and their families from the financial consequences of accidents. Life insurance offers financial protection to the insured’s beneficiaries in the event of the insured’s death. Given the unpredictability and severity of floods, having life insurance ensures that loved ones are provided for in case of a tragic event.”

What you should do: For those who have been covered, the insured value for the fixed assets declared under the policy would be the maximum limit up to which the compensation is made. “If the property is undervalued, deductions are made in receivable based on the extent of such underinsurance. And, when the assets are covered adequately, settlement is done in full to the extent of damage,” said Siddhu.

Reviewing policy terms, understanding coverage, and promptly reporting damages to the insurance company is important. You’ll need to document damages with photographs and seek professional advice when needed. “Insurance coverage for floods may vary, so careful review of policies and clarification from insurance providers is necessary. Adequate coverage is essential to protect against flood-related risks and ensure individuals and businesses can recover and rebuild after such events,” said Mishra.

How to claim: The policy document carries a claims intimation procedure either electronically or through the post and on the dedicated call centre. You can inform through various options available on policy documents, and the in-house claims team will service the request within the timelines as stipulated.

motor insurance policy typically covers damage due to natural disasters, but certain exclusions may apply, especially when there is water logging and flooding

In India, motor insurance typically covers damages caused to vehicles due to natural disasters, including monsoon-related damage from vehicles being swept away in a torrent. However, it is important to note that the coverage may vary depending on the specific insurance policy and the terms and conditions set by the insurance provider. 

While motor insurance typically covers damage caused to vehicles due to natural disasters, certain exclusions and limitations may apply especially when there is water logging and flooding. 

Motor insurance typically offers coverage against accidents, theft, and damage caused by natural disasters like floods. However, the extent of coverage may vary depending on the specific policy and insurance provider. It is important to carefully read the terms and conditions of your motor insurance policy to understand the coverage provided. Here are some common scenarios that your policy may not cover: 

Engine damage: Most motor insurance policies do not cover engine damage from water ingress or hydrostatic lock. This means the policy may not cover the repair costs if your vehicle’s engine gets damaged due to water entering the engine bay or if it seizes due to water pressure. 

Consequential damages: Motor insurance may not cover damage that occurs because of water logging or flooding, such as electrical failures, damage to the vehicle’s wiring, or to the car’s interior due to water seepage. 

T.M. Shyamsunder, COO of Royal Sundaram General Insurance, says, “To safeguard your vehicle during the monsoon, consider taking additional precautions. Park your vehicle safely away from flood-prone areas, ensure regular maintenance and servicing, and stay updated with weather alerts to avoid venturing out in hazardous conditions.” 

Policy exclusions: Some motor insurance policies may have specific exclusions related to water logging and floods. These exclusions could be mentioned in the policy document and may limit coverage or impose certain conditions for claims related to such incidents. 

A basic comprehensive motor insurance policy typically covers flood with add-ons such as Engine cover, NCB Protector, Depreciation waiver and Return to Invoice cover. These add-ons save your out-of-pocket expenses in case of claims during monsoons. 

Rahul M Mishra, Co-Founder and Director of Policy Ensure, said, “There is an add-on cover available in motor insurance called Engine Protection Cover or Hydrostatic Lock Cover. This cover protects against damage to the engine, electrical components, or other mechanical parts due to hydrostatic lock or water-induced failures.” He said, “Hydrostatic lock occurs when water enters the engine cylinder, preventing the piston from moving and potentially causing severe damage. It can happen if a vehicle is driven through deep water or encounters flooding.” 

The Engine Protection Cover is an optional add-on that you can purchase along with your regular motor insurance policy. It covers the repair or replacement costs of engine components damaged due to water ingress. 

Besides, if your vehicle gets swept away in a flood, it is generally covered under a comprehensive motor insurance policy. Such a loss is considered a ‘total loss’. It means that your car is damaged to the extent that the repair cost is higher than your car’s total IDV (insured declared value). Under such circumstances, the insurer pays you the IDV of the vehicle. 

However, it is important to note that the availability of add-ons in comprehensive motor insurance cover and its specific terms and conditions may vary depending on the insurance provider and the type of policy you choose. So, you will need to carefully check with your insurer or agent to understand the exact coverage details and any limitations associated with the policy.