Arm yourself with these insurance covers this monsoon

Covers for those living in dengue-prone localities and covers to protect car from waterlogging

This monsoon, arm yourself with not only rainwear and umbrellas but these insurance covers and add-on riders. Remember, these are additional protection; regular health and comprehensive motor insurance policies are a must. 

Health insurance

The fear of dengue is real and claims are going up as well. SBI General Insurance has seen the total number of settled claims for dengue increase from 34 in 2013-14 to 943 in 2016-17. “Illness due to infectious diseases is the highest in the industry, be it malaria, dengue or any other kind of infection,” says Puneet Sahni, head of product development. 

A regular health insurance policy will provide cover for malaria or dengue only if there is 24-hour hospitalisation. Most cases can be treated with medicines. In that case, the standard policy will not pay for the treatment. “Only if your health insurance policy includes out-patient department (OPD) coverage will it cover treatment that does not require hospitalisation. Even in case of hospitalisation, check if there is a capping on specific diseases,” says Sahni.

According to Vaidyanathan Ramani, joint head, health insurance business unit, Policybazaar.com: “The tests for dengue cost Rs 3,500-4,000 and specific vitamins are prescribed for treatment. These would not be covered if your health insurance does not have OPD coverage. That is when a disease-specific cover could come handy.”

The premium for a standard health insurance with OPD cover would cost 15-20 per cent more than one without.  

While there is no specific cover for malaria, there are two covers for dengue. These provide only for expenses related to treatment of dengue and have a waiting period of 15 days.

Dengue care: Apollo Munich’s Dengue Care covers hospitalisation expenses up to Rs 50,000 and OPD expenses up to Rs 10,000. The premium is Rs 444 per year and does not vary with the policyholder’s age or other factors. It covers diagnostic tests, consultation expenses, home nursing and pharmacy. It provides cover for non-medical expenses as well, if one chooses the option of shared accommodation during hospitalisation in a network hospital. This plan is also available in a Rs 1 lakh sum insured variant, at a premium of Rs 578. “Ensure that specific ailment policies offer comprehensive coverage for the illness covered,” says Antony Jacob, chief executive officer (CEO), Apollo Munich Health Insurance.

Dengue shield: DHFL Pramerica Life Insurance’s Dengue Shield provides a fixed lumpsum on diagnosis of dengue fever, subject to conditions. These include: decreasing platelet levels less than 100,000, increase in hematocrit more than 20 per cent of the highest normal value, immunoglobulins/PCR test, attending physician certifying for diagnosis of dengue hemorrhagic fever or dengue shock syndrome and minimum 48 hours of hospitalisation. 

If purchased online, the cost is Rs 365 per year for a cover of Rs 25,000. “Specific covers should be cost-effective, easy to buy, have simplified claim procedures and be devoid of unnecessary exclusions or claim conditions,” says Anoop Pabby, managing director (MD) and CEO, DHFL Pramerica Life Insurance.

Motor insurance

The monsoon brings a set of problems for motor vehicles, too. The main problem is flooding or waterlogging which can damage your car’s engine. “We generally receive claims of windshield replacement due to a tree fall, or bodily damage to the rear side by a third-party vehicle, probably due to poor visibility; also damage to engine and its parts,” says Rajiv Kumar, MD and CEO, Universal Sompo General Insurance. 

“In case the car is in a flooded area, do not crank the ignition. This leads to hydrostatic lock of the engine and needs complete replacement, which will be very costly. Insurers usually deny these claims, as they are treated as consequential losses,” says Devendra Rane, founder and chief technology officer, Coverfox.com.  

Engine protect: This can help cover damage of the engine or its parts, caused due to water ingression while driving through waterlogged streets. Damages to the engine can be expensive. It is also called hydrostatic lock cover or engine and gear box protection for this add-on.

Return to invoice: This would compensate for the actual value of the vehicle at the time of purchase, in case the vehicle is beyond repair, termed a “total loss”. 

Roadside assistance: This is useful for those who frequently travel long distances. Under this cover, the insurance company would provide assistance service on the site of any mechanical breakdown the car has encountered. These include on-site battery jumpstart, tyre replacement, refilling of fuel and towing services. Some also arrange for an alternate vehicle or hotel stay. 

The charge for Engine Protect is close to 0.2 to 1 per cent of the vehicle value depending on the brand and age of the car. This will be close to 5 per cent to 10 per cent of your overall premium. Some insurers bundle Roadside Assistance with the comprehensive policy, while some charge a flat fee for it. 

According to data provided by Policybazaar.com, for a Honda Amaze EMT 2016 model, having an insured declared value of Rs 4,06,324, HDFC Ergo General Insurance’s comprehensive motor insurance without add-on covers costs Rs 11,423 in Delhi and Rs 10,696 in Mumbai. With add-on covers, the price increases to Rs 14,910 in Delhi and Rs 13,902 in Mumbai. The cost of the add-on covers are as follows: Roadside Assistance: Rs 403, Zero Depreciation: Rs 1,896 and Engine Protector: Rs 1,214. 

In the case of Bajaj Allianz General Insurance, the comprehensive policy without add-on covers costs Rs 13,117 in Delhi and Rs 11,582 in Mumbai. With add-on covers, the cost increases to Rs 17,567 in Delhi and Rs 16,034 in Mumbai. Roadside Assistance is in-built, while Engine Protector is bundled with Zero Depreciation.