Your Vehicle Insurance needs a reality check with arrival of Monsoon

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Vehicle insurance in India is mandatory by law and very few take insurance as seriously as they do while buying the same vehicle. We all know the difference between Third Party and Comprehensive insurance and eventually, we all have become familiar with the Add on of Nil Depreciation. However, many other features beyond aforesaid mentioned have never been given due concentration by car owners.  One such add on which gives protection to the vehicle against damage is caused by flooding or water logging. The cover is known as Engine Cover as it not only protects against water but also against any damage to the engine by any means other than negligence. The feature is important with such uncertainties in climate and the losses to the vehicle could be huge if the engine gets damaged due to vehicle getting submerged in rain water. Moreover, the feature also covers any damage to engine due to accident causing leakage of oil which may result in seizing of engine.

The following damages with conditions are covered under the add on:

  • Internal parts of the engine.

  • Gear Box, Transmission or Differential Assembly.

  • Provided loss or damage is due to ingress of water in the engine or leakage of lubricating oil from engine / respective assembly.

  • It also pays for the lubricating oils / consumables used in the respective assembly i.e. material, such as engine oil, gear box oil etc. but excluding fuel.

Special conditions (Claim under this feature will be admissible only if):

  • Visible evidence of accidental damage to engine or respective assembly.

  • There is an evidence of vehicle being submerged or stopped in a water logged area.

  • Vehicle is transported / towed to garage within 2 (Two) days of water receding from the water logged area.

Exclusions:

  • Loss or damage covered under manufacturer warranty; recall campaign or forming part of maintenance / preventive maintenance.

  • Any aggravation of loss or damage including corrosion due to delay in intimation to us and / or retrieving the vehicle from water logged area.

  • Ageing, depreciation, wear and tear.

It is an important feature required by all the vehicles specifically sedans where the chances of getting struck in water logged areas are higher and this can cause heavy losses. The cover is certainly expensive but all high end cars shouldn’t avoid such cover as any damage to the engine can cause major financial loss. Thus, it would be penny wise pound foolish to ignore a useful cover where the premium would be in thousands but claim could run in lakhs especially in high end imported cars