Rodents, rain and riots: Is your car insurance actually covering it?

Business Standard

2 days ago

With monsoon in full swing, incidents of flooding and waterlogging are a common sight. So is your vehicle really protected against such seasonal menace, along with the rodent attacks that usually rise during the period. And what if your car gets damaged in vandalism? The answer lies in the fine print of your motor insurance policy.
'Most motor insurance policies in India work on a 'named perils' basis. This means only specific risks mentioned in the policy are covered,' says Varsha Gujarathi, chief customer officer at Universal Sompo General Insurance.
Under a standard comprehensive plan, damages from fire, theft, riots, earthquakes, floods, cyclones, and even vandalism are typically covered. However, wear and tear from long-term sun exposure, such as melted rubber garnishes, is not, as it's not considered accidental damage.
Rodent damage also falls under 'accidental external means' and is generally claimable. But there's a catch. 'If rodent damage happens frequently, insurers may view it as negligence by the policyholder for not taking proper precautions. This could affect claim approval,' she adds.
'A truly comprehensive policy isn't just about collision cover, it also looks after you when rats chew your wiring, vandals scratch your paint or a storm floods your car,' said Saurabh Vijjayvergia, founder & chief executive officer, CoverSure.
Weather claims: What's covered and how to make one
Monsoons often wreak havoc on vehicles, especially in low-lying areas. Gujarathi confirms that flood-related damage is usually covered, provided the incident aligns with 'listed perils' and water ingress is evident.
However, if there's no clear water damage, or if the policy doesn't include flood or storm coverage, claims can be denied.
Want wider coverage? Add-ons might help
While non-accidental damage isn't covered under own damage (OD) insurance, car owners can look into extended warranties offered by dealerships for such risks.
'Rodent or weather-induced damage that's not from an accident may still be protected through these optional add-ons,' says Gujarathi.
'Engine-protection adds about Rs1,500–3,000 a year, and it can save you lakhs on engine repairs. Nil-depreciation and roadside assistance covers cost just a few hundred rupees and are well worth it, especially during the monsoon or for new cars,' adds Vijjayvergia
Steps to strengthen your claim
To avoid complications during claim settlement, experts recommends a few practical steps:
-Take photos of the vehicle before and after any incident as evidence.
-Avoid washing or cleaning the car until a surveyor inspects the damage.
-Park on higher ground in flood-prone areas to prevent water ingress.
Follow alerts: Move the vehicle when weather warnings are issued.
'These proactive steps can go a long way in reducing damage and speeding up the claims process,' she advises.
Bottom line: Don't assume your car is covered for everything. Check your policy wording, stay alert during extreme weather and consider preventive steps to avoid being caught off guard.