49124RIL has remained flat in last two months, should one buy its shares now or not?

The onset of monsoon weather gives immediate relief from the thought of the scorching heat but at the same time, it brings back memories of waterlogged roads and overflowing rivers. The recent extreme example has been the case of a car being swallowed up in a sinkhole as the road caved in amid heavy rainfall in Mumbai. It is therefore important to keep your car prepared against all risks be it a danger from falling trees or submerged vehicles.

Comprehensive Car Insurance

Taking a mandatory third party insurance cover is not enough. For the coverage of your car against any damage during monsoon, you need to have a comprehensive motor insurance policy, which consists of two covers — own damage and third party cover. This is because third party insurance only covers damages caused to the third party. Because third party insurance is a statutory requirement for all vehicle owners as per the Motor Vehicle Act, many people don’t go for comprehensive coverage, which can be a costly mistake, especially during monsoon. For protecting your own car you need to buy a comprehensive coverage

Tips

Once you have comprehensive coverage, it is important that you take all precautions to ensure your claim does not get rejected. For example, never crank start your vehicle if it is submerged in water. This can damage the engine due to hydrostatic lock, so unless water drains out do not try to restart your car. If the engine damages due to restarting of the car then it is is considered as consequential damage which is not covered under the comprehensive plan. For such cases always keep the number of your insurer handy and inform it immediately of the situation.

Add-ons for complete coverage during monsoon

Engine and electronics cover: Damage to the car’s engine and electronic circuit can be a very expensive affair, especially for a high-end car. This cover provides insurance against any damage to the car engine and circuit in any situation, and not just in an accident.

Zero depreciation cover: Zero depreciation cover ensures that in an accident claim, you do not lose the depreciation value. You get full coverage for the vehicle’s replaced parts. Without this, you get only the value of the parts after depreciation. The depreciation cover is available only to vehicles not older than three years.

Tyre protect cover: Tyre is the most-used part of the car and therefore liable to maximum damage especially given the bad condition of the roads. A Tyre Protect add-on provides an additional cover for tyre replacement due to damage caused by use or accident.

Return to invoice: Return to Invoice add on provides a cover to protect against a substantial financial loss in case the car is severely damaged. It covers the car for its full original invoice value against the depreciated market value covered under a standard plan.

Consumable cover: A regular policy does not cover consumables, the parts that are consumed in a car like an engine oil, nuts, bolts, engine filter etc. This add-on ensures all such parts, which can be very expensive in the case of high-end cars, are covered at all times.

Roadside assistance cover: A sudden vehicle breakdown can be unnerving. Imagine if you are on a long road trip or at night at an isolated place. It can be a nightmare. This cover ensures you get emergency assistance in such a situation. You can be assisted with fuel assistance, battery recharge, flat tyre assistance, taxi and other such services.

Point to Note

It is good to know about exclusions beforehand as it cuts out any surprises at the later stage. For example, additional accessories are not covered under your comprehensive insurance policy. It also does not cover any consequential damages.