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For those who own a car or wish to buy one, they are probably aware of the fact that it is mandatory as per the Motor Vehicles Act, 1988, to have a third-party insurance policy to drive on the roads of India. A third-party insurance cover is the most basic form of motor vehicle insurance and covers the damages of the third party in the accident. For third-party insurance policyholders, there is no protection for the damages met to their own car or themselves if they meet with an accident, which brings us to the benefits of a comprehensive car insurance. A comprehensive car insurance policy/plan covers the cost of the third party as well as the first party (the policyholder) for damages caused following an accident.
Not just that, a comprehensive car insurance policy/plan that offers coverage also offers protection against natural calamities, such as floods, earthquakes and so on, making it imperative for car owners to have during the monsoons. Car owners that have purchased a comprehensive insurance policy are protecting their car from any sort of financial burden that they could face if their car is damaged in a flood or in the monsoons. Apart from this, a comprehensive car insurance policy comes with various add-on covers, enhancing the protection of the car against any damages that could be caused to the car during the monsoons. Let’s discuss further.
We’ve listed the common occurrences that happen during the monsoons, giving you a good enough reason to purchase a comprehensive car insurance policy:
Most people assume that just because they have got a comprehensive car insurance policy, the insurance company is liable to cover the damages come what may. However, though you might have an active comprehensive car insurance policy, the insurance company has every right to reject your claim based on certain circumstances. A car insurance company will cover the costs of the damages up to the insured declared value of your car. The insured declared value is based on the age, condition of your car and of course, the depreciation factor.
Now, a car insurance company will only cover the damages met to your vehicle if it is classified as ‘own damage’ and not ‘consequential damage’. For it to be classified as own damage, the policyholder and vehicle owner at no cost should be responsible for the damages caused to the car. For example, if a car is idle and parked in a water-logged area, leading to it being damaged. A consequential damage is if the damage to the car was caused out of the negligence of the driver. For example, if a driver attempts to drive past a water-logged area and cranks the engine, leading to a hydrostatic lock - water in the engine causing it to seize. Once the car insurance claim has been made, and if the damages caused to the car are consequential, then the claim will be rejected.
While a comprehensive car insurance policy will cover the basic damages caused to a car during the monsoons, having the listed-below add-on covers will enhance your protection:
If your windscreen is damaged following a hailstorm, a windshield protection cover will cover the cost for the replacement of the windscreen.
Having this add-on cover is definitely the most important. The engine protection add-on cover offers coverage for engine seizures as well if there is a damage to the gearbox.
Since the coverage to cover the cost of the damages is based on the insured declared value (IDV) of the car, or the depreciation factor, having a zero-depreciation add-on cover will negate the depreciation value of your car. This add-on cover will make it possible for the policyholder to make the highest possible claim to cover the cost of the damages.
If your car stalls in a water-logged area, then instead of trying to start the car - a move that will result in a possible engine seizure - the road-side assistance cover will help you save on any sort of towing charges. Also, by having the insurance company move the vehicle, it reduces the chances of them deducing the damages as a consequential loss.
Since the monsoons could quite possibly damage your vehicle, it’s important that you keep the below-listed tips in mind for the season:
Policyholders should note that if the damage caused to the car is a result of any of the circumstances as listed in the exclusion list of the insurer, then the claim will be rejected. As already mentioned, a consequential loss will also result in a claim rejection. Policyholders should also ensure their comprehensive car insurance policy is active when making the claim.
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