The Cyclone Vardah has hit Chennai, causing a lot of destruction. Lives have been lost. Powerful winds have uprooted trees, which have fallen on cars. Homes have been ripped apart. Flooding in low lying areas has submerged cars. Then there are traffic jams…Many cars have been damaged in accidents. If you reside in Chennai, your beloved car could have been destroyed or submerged in water. Cars cost lakhs of rupees. Buying a new car costs a lot of money. This is why you need car insurance.
But what if your car engine gets damaged, as you start it in a flooded area? Will your car insurance plan compensate you for the loss? This is why you need add on car insurance plans.
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You pay a premium, once a year and avail a car insurance plan. What if you meet with an accident and cause injury to a person crossing the road or damage a car? Your Car insurance plan compensates the person, who suffers damage/injury/loss in the accident. This is called third party liability insurance. Third party liability is compulsory in India.
Now, what about the damages suffered by your car? Third party liability does not compensate you for the loss. This is why you need a comprehensive car insurance plan. Your comprehensive car insurance plan, covers you for both third party liability + damage suffered to your car.
Cyclone Vardah has struck. Your area is flooded and submerged in water. You start your car engine in this water logged area. The car engine is seriously damaged…
This is a shocker. Your car insurance plan will not settle your claim. The damage suffered due to water leaking into your car engine by you starting your car in a submerged area, is called consequential damage. The insurer will not compensate you for the loss.
Repairing your car engine can cost INR 50,000. If your car is an SUV or a high-end Sedan, cost of repairing the car engine can be very high. This is why you need an add-on cover called engine protection add-on.
If you own a brand new car and stay in an area which gets submerged in water or a cyclone/flood prone area, you need engine protect add-on.
You are compensated if your car engine is damaged by starting it in a flooded region. You are compensated for engine related repairs, not related to accidents. You don’t get protection for regular wear and tear or negligence on your part.
If you stay in a region like Chennai, which has been hit by flooding and a cyclone, it’s wise to avail engine protection add-on.
Cyclone Vardah has uprooted trees causing traffic jams. This could mean a road accident as citizen’s drive recklessly, trying to escape from the fury of the wind.
What happens if parts of your car are damaged in an accident? This is why you need zero depreciation cover. Sure…you need to pay an extra premium to avail this add-on. Your car parts are damaged in an accident. In a standard car insurance plan, the insurer deducts a value called depreciation, before settling your claim. (Depreciation = loss in the value of car parts with time). If you have zero depreciation cover you get the full claim, without any deductions for depreciation.
Your car needs to be 3 or 5 years old. You get this for a maximum of two claims within the policy period.
Yes…Cyclone Vardah is an act of God. There’s nothing which can stop it. But…you can protect your car with some add-on covers. Be Wise, Get rich.
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