Does a motor insurance policy cover your vehicle against monsoon damage?
Motor insurance 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.