Business

Bengaluru: Affected by floods? Check out how insurance can cover your losses

If your car is damaged by floodyou will have to contact your insurance company to claim the cost of repairing the vehicle.

However, not all auto insurance can help you compensate for a percentage of the loss caused by a disaster. Thereby, it is important to understand the features and benefits of auto insurance policies before they go into effect. There are many types of vehicles insurance and they vary from company to company.

Auto insurance companies offer policies that can help car owners recover from disaster damage to their cars.

Last month, on her blog, Acko stated that flood damage is only covered if you have comprehensive coverage, which is optional and not required like third-party insurance.

What is a comprehensive auto insurance policy?

Comprehensive car insurance policy helps car owners overcome damages caused by natural disasters such as floods, earthquakes, tornadoes, etc. In addition, the insurance policy also covers man-made vehicles. caused such as accidental damage, fire, explosion, theft, … liabilities of the party.

Acko in his note says that flood damage can cause serious damage and lead to a reduction in the value of the vehicle. It can lead to costly repairs and, in some cases, even total loss (irreparable damage). While a Comprehensive Car Insurance Policy may cost you more, it can save you a lot of money in the event of such an unexpected loss.

Even so, in the event of flood damage, a comprehensive car insurance policy may seem like the perfect insurance option for your vehicle, however, the policy does not provide coverage for certain damage such as your engine or transmission.

“To extend the base package, you can include various additional coverages along with Comprehensive Coverage. Auto Complementary Insurance are additional coverages that provide financial assistance against loss or damage. specific damage or loss incurred by your vehicle,” the Acko Team said in their note dated Aug.

According to Acko, the main types of damage to your car can be — engine damage, transmission damage, electrical and electronic damage, and upholstery damage.

In engine failure, water enters the vehicle’s engine due to flooding, causing damage to the internal components of the engine. Meanwhile, due to gearbox damage, water flooding into the transmission can push the unit to malfunction or it may be completely unusable.

Under electrical and electronic damage conditions, water may short circuit electrical or electronic components or the warning light on the control panel may malfunction. Furthermore, in the event that the upholstery is damaged — due to flooding, the interior such as carpets, seats and other soft furnishings may be affected.

The add-ons to your comprehensive car insurance policy could be – motor protection insurance, non-claims insurance (NCB), return-to-receipt insurance, zero amortization insurance , key replacement insurance, consumable insurance and roadside assistance insurance. Acko explains the following in his blog:

Engine cover: Vehicle engines are prone to damage due to disuse or flood water intrusion. Comprehensive coverage does not cover damage to your vehicle’s engine; however, you are covered financially for the repair or replacement of damaged engine parts with this add-on.

No Claims Bonus Protection (NCB) Insurance: When you file a claim within the contract period, you will lose money to the NCB. However, the NCB Protection Cover retains the discount even if you file a claim. You will get a discount of up to 50% (if you do not claim for 5 consecutive years) even if you claim.

Back to the Invoice Cover: If your car is damaged beyond repair by flooding or in the event it is stolen, with the Return Bill Cover you can claim the purchase price or invoice value of the car including the cost registration and road tax as well as under policy terms.

Zero Depreciation Insurance: It should be noted that over time, auto parts depreciate due to wear and tear, the value of cars also decreases. When you make a claim, the insurance company pays the depreciated value of the parts, not the full value. However, with this add-on, depreciation is not taken into account while settling the claim, resulting in the receipt of the total value of the auto repair.

Key replacement cover: This add-on will cover the cost of replacing or repairing locks that have been affected by the flood. Modern car keys are very sophisticated and can cost a lot of money in case of repair or replacement.

Consumption of materials: With this add-on, policyholders can protect against the costs incurred for consumables in the event of an accident or natural disaster such as a flood. Notably, however, the cost of replacing consumables such as lubricants, gearbox and engine oils, nuts and bolts, grease, etc., is not included in the base plan.

Roadside assistance: Under this add-on, you can get 24×7 emergency roadside assistance, including towing service, if your vehicle gets stuck due to a flood. In addition, you can enjoy other benefits such as gas filling, minor repairs, flat tire service, etc.

General insurers such as Acko, HDFC Ergo, ICICI Lombard General Insurance, Tata AIA, Bajaj Allianz General Insurance, Bharti Axa General Insurance, and SBI General Insurance among others all offer car insurance policies. .

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