Insurance claims for monsoon damaged cars

During monsoon, it is quite a common insurance claim against car engine seizure and at the same time, it is also one of the most disputed because insurers reject out right all cases in which the water enters the engine and damages it. When driving through a flooded area, water can enter the engine from the air-intake system, seizing it. It is called as the hydro static lock, and usually happens when a driver tries to restart the car multiple times after the water has entered the engine. But in certain cases, it can also happen when the car is simply moving through a water-logged area. Insurers, however, reject all claims pertaining to hydro static lock, citing that the customer was negligent and damaged the engine trying to restart it. “If the seizure happens when driving through a water-logged area, it’s an accident. Insurers need to reimburse the cost of repair, but if it happens because the customer tried to start the car multiple times, it’s negligence. It’s not possible to establish whether the hydro static lock is an accident or due to negligence,” says an official with a general insurance company. As engine seizure can lead to disputes, most insurers advise that it’ s always better if a customer gets an add-on cover that protects engine damages.“The add-on cover comes at a nominal cost and includes all kinds of damage to the engine. It protects the buyer from consequential damages too,” says Parag Ved, executive vice-president (consumer lines), Tata AIG General Insurance. “Factory-fitted (equipment) does not include the components that your dealer would have offered you after the car reached the showroom. If you upgraded audio systems, got a reverse parking sensor later, added extra speakers from the dealer, etc, all such equipment would not be covered unless you had declared them to the insurer when filling up the form,” says Atrey Bhardwaj, category head, general insurance, BankBazaar.com. Bhardwaj says most individuals don’t realize that they need to inform the insurance company of any additional fitting they do, but they can be easily covered.