Car or bike drowned in flood? If you want full insurance money then do this work immediately

Car or bike drowned in flood? If you want full insurance money then do this work immediately

by with No Comment Car Review

Floods and waterlogging are a common problem during monsoon in India, which causes huge damage to cars and two-wheelers. Engine, electrical system, interior and body parts get damaged due to immersion in water. In such a situation, a comprehensive insurance policy protects you financially. Third party insurance only covers damage caused to others, whereas a comprehensive policy is necessary for damage to your own vehicle.

This includes natural disasters like flood, cyclone. Taking the Engine Protect add-on can also cover problems like hydrostatic lock. Filing the claim on time and having the correct documents makes the process easier. Companies fast-track claims under IRDAI guidelines. If you are careful, you can get full compensation, be it repair or total loss. Let us know which steps can be followed to get the insurance money?

What to do immediately if your vehicle gets damaged in floods

In case of flood, first ensure the safety of yourself and your family. If the vehicle is stuck in water, do not start it. This can cause hydraulic lock due to water entering the engine, which leads to claim rejection. Disconnect the battery if possible. Do not move the vehicle yourself. Get towed with the help of the insurer.

Take photos and video of the damage. All around the vehicle, showing the engine, dashboard, seats, water level and surroundings. This evidence helps a lot in claim processing. Do not clean the vehicle even after the water recedes, wait until the surveyor arrives. Avoid roadside parking and choose higher ground.

Notify the insurance company immediately

Report the incident within 24-48 hours. Delay may result in claim rejection. Do intimation through the company's helpline number, app, website or agent. Provide policy number, vehicle details, date and place of incident. Note down the claim registration number.

Most companies offer roadside assistance, which provides towing facilities. The same process is applicable for both two-wheelers and four-wheelers. According to IRDAI, claims due to natural disaster are given priority. Also keep these important documents ready-

  • copy of insurance policy
  • Vehicle Registration Certificate (RC)
  • driving license
  • photo/video of damage
  • Claim Form (Digital or Physical)
  • If the vehicle is washed away then file an FIR in the police station
  • NOC from the financier if the vehicle is financed
  • AML documents like PAN card and Aadhaar (for large claims)

File the claim online by uploading these documents. In many cases, garage estimate is also helpful.

Surveyor Inspection and Claim Assessment

After giving information, the insurance company sends a surveyor. He physically inspects the vehicle, assesses the damage and prepares a report. Do not get any repairs done until the surveyor arrives.

If the repair cost is more than 75% of the IDV (Insured Declared Value) then it can be considered a total loss and payment is made on the basis of IDV (less deductible). Cashless facility is available in some network garages. If not, then reimbursement also happens. The same rule is applicable in two-wheelers also.

Total loss or loss of vehicle

If the vehicle is washed away in the flood and is not found then lodge an FIR. Get a non-traceable certificate from the police. After this the insurance company settles the claim on the basis of IDV. If the loss is high even after being located, it is considered a total loss.

Claim Settlement and Tips

After submitting all the documents the claim should be settled within 30 days. Interest may be charged on delay under IRDAI rules. Cashless repairs will be easy if you choose a network garage. Avoid common mistakes like delay, wrong documents or not starting the vehicle.

Check the policy before the season, take engine protect and zero depreciation add-ons. Keep digital copies of documents. This will keep the claim process fast and transparent. In this way, by filing the claim carefully, the vehicle owner gets financial relief even in times of crisis like flood.

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Must buy these 5 add-ons with car insurance! Lakhs of rupees will be saved in claims

Must buy these 5 add-ons with car insurance! Lakhs of rupees will be saved in claims

by with No Comment Car Review

Your car is not just a vehicle, but your hard-earned money and daily need. Therefore, when you get car insurance, just taking the basic policy is not enough. Road uncertainties, expensive parts, floods, accidents or breakdowns can occur at any time. In such a situation, by choosing the right add-ons while taking car insurance, you can get mental peace along with security of your money.

These add-ons save you from depreciation deductions, extra expenses and emergencies at the time of claim. These covers prove to be very useful especially for users with new cars or those who drive a lot. A little extra premium is charged, but lakhs of rupees are saved in case of claim. Choose these add-ons keeping in mind your driving habits, age of the car and the region. With this, your car will be completely safe and you will be able to drive without any worries. Let us know about 5 such important add-ons.

1. Zero Depreciation Cover

This is the most popular and essential add-on. In a normal claim, the insurance company deducts depreciation based on the age of the parts, due to which the claim amount reduces significantly. With zero depreciation cover, you get the full value and there is no deduction. This is especially beneficial for cars less than 5 years old.

The company bears the entire cost of repairing bumpers, panels or other expensive parts in case of accident or damage. This keeps your financial loss minimal. The premium seems a little high but it proves to be an investment in the long run. Every car owner should give this priority.

2. Roadside Assistance

Emergencies like breakdown, puncture, battery down or running out of fuel can occur at any time on the road. This add-on provides 24×7 support which includes towing, tire change, jump start, fuel delivery and lockout service. This is a life saver especially for those traveling on highways or remote areas. Many companies offer a limited number of free services. Be sure to keep this information in mind while purchasing an add-on.

3. Engine Protection Cover

The engine is the most expensive and important part of the car. Problems like water logging, oil leakage or hydrostatic lock are not covered by the normal policy. This add-on covers the cost of repair or replacement of the engine, gearbox and related parts. Mandatory for those driving in flooded areas or on bad roads. The claim process is simple and protects lakhs of rupees. Engine damage is often unpredictable, so this cover provides a strong shield of protection.

4. Return to Invoice Cover

In case of total loss of the car, this add-on refunds the original invoice value (on-road price). This also includes registration, insurance and other charges. You get the full amount instead of less payment based on depreciation or market value. Very useful for those buying a new car. This makes it easier to buy a new car. It provides financial security in case the entire vehicle is damaged in an accident.

5. Consumables Cover

Accident repairs involve the cost of engine oil, grease, bolts, nuts, washers and other consumable items, which are not covered under a normal policy. This add-on takes care of all this. Avoids extra bills at the time of claim. Especially very beneficial in major accidents or parts replacement. It makes the claim process complete by covering small but essential expenses. It makes sense to include this in every insurance policy.

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Zero Dep or Own Damage? Which one will be most beneficial to choose while taking car insurance?

Zero Dep or Own Damage? Which one will be most beneficial to choose while taking car insurance?

by with No Comment Car Review

While buying car insurance, many people remain confused as to what should be the basic coverage and which add-ons are beneficial. On-damage i.e. Own Damage (OD) cover and Zero Depreciation (Zero Dep) are two important terms. OD protects against damage caused to your own car, while Zero Dep eliminates the depreciation deduction on parts at the time of claim.

Nowadays, in view of the rising repair costs and inflation of parts, it is important to make the right choice between the two. In this article we will understand the difference in detail. Claim process, premium impact and also which option is better for you? By choosing the right insurance, you can avoid unnecessary expenses and get complete protection.

What is Own Damage Insurance?

Own Damage cover primarily provides protection against damage caused to your car. This includes road accidents, theft, fire, natural disasters (flood, earthquake), riots etc. It can be purchased along with third party insurance and is also available as a standalone OD policy.

In OD cover, depreciation is deducted on the cost of parts at the time of claim settlement. For example, the reduction may be 50% on plastic/rubber parts, 0-50% on metal parts depending on age. Labor charges are usually full, but parts costs are reduced. For older cars or those looking for a budget-friendly option, the OD offers basic safety. As per IRDAI regulations, it is available in standalone form from 2019.

What does Zero Dep mean?

Zero Depreciation is an add-on cover taken with an OD or Comprehensive policy. This is also called bumper-to-bumper or Nil Depreciation. In this, there is no depreciation deduction on the parts replaced at the time of claim. Meaning, the insurance company covers the entire bill (after certain deductibles).

This is especially beneficial for new or luxury cars, because parts are expensive and the amount of depreciation can be high. Generally it is available for cars up to 5 years old. The premium is 15-30% more than the OD premium, but the savings in claims are considerable. The number of claims in this add-on is limited (2-3 claims per). These are the differences between the two-

  • OD is a policy (Standalone), whereas Zero Dep is just an add-on.
  • OD is cheap, Zero Dep is expensive (additional 10-30% cost).
  • Due to deduction of depreciation in OD, claim is reduced, full payout is available in Zero Dep.
  • OD for older cars or low budget ones, Zero Dep better for new/expensive cars.
  • Reduction in OD based on age and parts (eg 50% on plastic), Zero deduction in Zero Dep.

Example: Of a repair bill of ₹50,000, you may lose out on ₹15,000-20,000 in OD, whereas in Zero Dep, almost the entire bill gets claimed.

Which one is right to buy?

This completely depends on the age, value, usage and budget of your car. If the car is new (0-5 years) then it is better to take comprehensive or OD with zero dip. The cost of the additional premium will be covered in just one or two claims. This is necessary in luxury or high-value cars. At the same time, for an old car, only OD is sufficient because Zero Dep can be expensive if the parts are cheap and depreciation is high.

Advice and Precautions

When making a claim, report it within 30 days, otherwise it may be rejected. Also check out other add-ons like engine protection, consumables. Choose the right IDV (Insured Declared Value) as it decides the upper limit of the claim. Always choose IRDAI approved insurance company and read the policy document carefully.

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Why is there a huge difference between ex-showroom and on-road prices? Know

Why is there a huge difference between ex-showroom and on-road prices? Know

by with No Comment Car Review

Ex-Showroom vs On-Road Price: Everyone dreams of buying a new car, but when we go to the showroom, the mathematics of the budget changes completely. There is a huge difference between the price shown in the advertisement and the amount deducted from the pocket. The main reason for this difference is the difference between 'Ex-Showroom' and 'On-Road' price.

Actually, the ex-showroom price is the basic amount at which the company sells the car. This includes only factory cost, dealer profit and GST. But to drive the vehicle legally on the road, many mandatory taxes and charges have to be paid. This is the reason why there is a huge gap of 15% to 25% between the showroom price of a car or bike and the final bill, which often surprises the customers. Let us know where the middle money goes?

What is the difference between ex-showroom and on-road?

When you buy a new car, there are various government and non-government charges added on top of the base price. Let's understand where every penny of your bill goes:

1. Road Tax / RTO Fees

This is the largest part of this gap. State governments collect road tax on every new vehicle to fund road maintenance and infrastructure. This tax can range from 6% to 20% in different states depending on the price of the vehicle, engine capacity (cc) and type of fuel (petrol/diesel/electric). Apart from this, registration fees and number plate (HSRP) charges are also included in this.

2. Vehicle Insurance

It is legally mandatory to have insurance to drive on the road in India. Third party insurance has been made mandatory. According to government rules, it is necessary to take third-party insurance for 3 years for a new car and 5 years for a two-wheeler. Apart from this, people also take 1 year comprehensive insurance to cover the loss of their own vehicle. By combining these two, the insurance premium becomes a huge amount.

3. TCS – Tax Collected at Source

According to the rules of the Income Tax Department, if the ex-showroom price of a vehicle is more than Rs 10 lakh, then the government charges TCS of 1% on it. Although you can claim this later while filing your Income Tax Return (ITR), it increases the on-road price at the time of purchasing the vehicle.

4. Fastag & Green Cess

Fastag is mandatory for every new vehicle to pass through the toll plaza on the National Highway, for which around Rs 400 to 600 is charged. In many states, in the name of controlling environmental pollution, additional green cess is imposed especially on diesel vehicles.

Dealer's hidden charges

There are some expenses which are not necessary, but the dealers include them in the on-road price list. It is very important for customers to know:

  • Logistics or Handling Charges: Cost of bringing the vehicle from the yard to the showroom. The Supreme Court has declared it illegal, so you can demand its removal.
  • Accessories Kit: Dealers add things like car mat, seat cover, chrome garnish in advance. If you wish, you can refuse to take them.
  • Extended Warranty: Apart from the company's standard warranty, you can also get additional years of warranty removed, which is optional.

Work advice: Next time you go to buy a car, ask for an item-wise breakup of the on-road price from the dealer. You can also get the insurance done cheaply from any other company from outside, for which the dealer cannot force you. By being smart, you can save thousands of rupees in on-road prices.

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