Motor Insurance: It Pours Claims During Monsoons

The monsoons have arrived and many parts of the country are already facing problems due to water logging and floods. During the monsoons there are higher chances of vehicles getting damaged which results in higher motor claims ratio.

How do you protect your car or bike during the monsoons? Is your standard package policy enough to cover specific monsoon related damages?

There are ways to protect your vehicle during the monsoons.  The most common factors are heavy rains, floods, storm and landslides which often cause heavy damage to your vehicles. 

“Typically there is a rise in motor claims during the monsoons. The loss ratios are seen to be higher by around 10 per cent during monsoons vis-à-vis the rest of the seasons. We saw a 14 per cent increase in the claims ratio during 2016-17 monsoons season. For Reliance General Insurance the top five claims in 2016-17 came from Maharashtra, Tamil Nadu, Gujarat, Kerala and Delhi and for the year 2017-18 it was Maharashtra, Tamil Nadu, Gujarat, Kerala and Karnataka” says Rakesh Jain, ED & CEO, Reliance General Insurance.

 The right way is to prepare for the unpredictable weather and natural disasters with comprehensive or add-on covers. It is mandatory for every owner of a vehicle plying on public roads to take a motor insurance policy. We need motor insurance even if we don’t drive on the roads as it covers damaged cause by natural disaster, theft or fire. 

 “It is pertinent to note that a standard policy may not necessarily cover all the losses and a careful selection of add-on covers would ensure complete protection for the owner. For instance, due to monsoons the common cause of loss is damage to the engine due to hydro-static lock. The standard package policy does not cover this and the customer would have to opt for an engine protection cover. The damages to the vehicle would be covered only if the customer would have a comprehensive package policy. During a flood-like situation, where the workshops are also having a huge volume of vehicles to be attended, we opt for a on the spot settlement, so that customers can get their claims settled and subsequently get their vehicles repaired” added Rakesh Jain.

 We buy motor insurance to protect our vehicles against losses or damage due to unforeseen risks. However, many face difficulties at the time of claims and do not get the benefits of having a motor insurance. Before buying any motor insurance it is important to check the claims settlement ratio, inclusions and exclusions to avoid any regrettable experiences.