The monsoon season is infamous for causing the worst damage to vehicles. Without an additional layer of protection cover for your vehicles, heavy rains, waterlogging, floods can damage the essential parts of your vehicle, bringing in unwanted troubles with serious cost implications. A popular misapprehension amongst vehicle owners is that a comprehensive motor insurance covers the replacement or repair of damages to the vehicle or its parts, if met with an accident but, to avail these benefits, one needs to have some essential add-on covers.
Though a comprehensive car insurance will take care of your car and its repair costs, it may have its limitations. And, this is where depreciation reimbursement cover comes handy to plug the gaps between the actual damage and the claim settlement amount. It entitles you to claim the full cost of replacing car parts damaged in accidents without having to pay from your pocket.
This cover is applicable for cars that are less than 3 years old and declared as total loss. With Return to Invoice cover you get paid the financial shortfall between the ‘claim amount receivable’ under the policy and the ‘purchase price of vehicle’ as per invoice in case the vehicle is declared a Total Loss or a Constructive Total Loss. The cover also pays for the first time registration charges and road tax on the insured vehicle.
In the event of breakdowns, roadside assistance is a life-saver to help you with round-the-clock services such as change of flat tyre, jump start services, repair on the spot, fuel support, emergency towing assistance, battery related technical snags, mechanic services, spare key retrieval and emergency taxi services including arrangement of emergency accommodation and other utility benefits if you get stranded in remote spots.
This add-on is recommended for owners of cars, which are up to three years of age. It compensates for even those repairs in engine not related to accidents. This is a must-have cover for those living in flood-prone areas where recurrent waterlogging during monsoon upsurges the odds of causing damage to the car’s engine. The company will pay for repair or replacement expenses pertaining to engine damage including internal parts, gearbox, transmission and differential assembly due to an entry of water or due to oil leaks.
In order to encourage safe driving, vehicle owners get an incentive in the form of a special discount or bonus given for every claim-free year that is when you don’t make any car insurance claim in an entire policy. With this add-on-cover, you can make claims for loss such as windshield glass repair or replacement, accessories or total vehicle theft and also for the total loss of the vehicle.
All said and done, don’t cut corners and expose yourself to greater risks on the road by going for a low-cost cover. During monsoon time, the risk of accidents doubles up, so be wise and weigh in the various motor add-on covers available in the market to understand its features, benefits and the needs of your vehicle, to have one. It is always recommended to go with well reputed insurance carriers having a track record of swift and seamless claim settlement process, an extensive network of cashless garages and prompt assistance support to help you sail through any unforeseen eventualities. Drive safe and keep your car hale and hearty this monsoon!
The author is Executive Vice President & Head of Consumer Lines, Tata AIG General Insurance Company