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Motor Insurance For Fire: How to make car and bike fire-proof with motor insurance coverage? Key points

As many as 4 electrical scooters have been within the information not too long ago for catching hearth. The most talked about incident on social media was hearth catching a model new Ola S1 Pro electrical scooter. In previous, there have been a number of incidents of different autos catching hearth as effectively. 

While insurance coverage insurance policies are designed to assist the insured in case of mishaps, people planning to purchase a motor insurance coverage for his or her vehicles of bikes want to concentrate on sure information when it comes to hearth. Not realizing these particulars might depart you disillusioned in case your car catches hearth. 

No particular plan

According to insurance coverage consultants, harm due to hearth is roofed by a complete plan for 2 wheelers or vehicles. 

“There is no specific plan especially for covering your vehicle against fire. You just need a  comprehensive plan which will ensure that the cost of repairing the damage will be taken care of,” Deepak Yohannan, CEO, MyInsuranceMembership, advised FE Online. 

“Any damage due to fire is covered if you have a comprehensive insurance plan – two wheeler or car. Damage to your vehicle due to fire will not be covered in case you only have third party insurance cover. So the most important thing is to purchase a comprehensive over – third party plus own damage,” he added. 

What complete plans provide

There are two sorts of motor insurance coverage obtainable in India, one is obligatory third occasion insurance coverage and different is standalone harm coverage. 

“While third party covers don’t have fire cover, standalone policies do cover damages caused by fire. If a policyholder is worried about fire damages, they can opt for a third party with the added benefit of fire cover,” Rakesh Goyal, director, Probus Insurance stated. 

ALSO READ | Electric Scooters catching hearth: Here’s why it occurs and how to stop it

A complete motor insurance coverage coverage sometimes covers situations of fireside amongst different mishaps resembling theft, personal harm, personal accident, and pure disasters like earthquakes, cyclones, landslides and so forth. 

Key points to make your car ‘fire-proof’ with insurance coverage 

  • Buying only a third-party cover won’t assist in case the policyholder’s car catches hearth. Such a coverage is there simply to defend the insured from losses if their car have been to harm any third-party or property.
  • Only a complete motor insurance coverage product which incorporates the personal harm cover can pay for claims arising out of fireside except an exclusion is particularly talked about within the coverage doc.  
  • Any modifications made to the car which tampers with the essential specs and might have contributed to the hearth can change into a trigger for repudiation of the declare. It’s advisable to get modifications accomplished by a certified supplier to guarantee the extra elements will be added to the IDV of the car.
  • Damages due to mechanical defects like short-circuiting, overheating, oil leakage, or gasoline seepage may additionally not be lined. Needless to say, if the hearth was attributable to the policyholder’s personal negligence or on goal, the declare shall be rejected.
  • Policyholders ought to at all times take a look at what just isn’t lined within the coverage. Mechanical defects like short-circuit, oil leakage or overheating are excluded from the coverage. 
  • When the hearth damages happen exterior the geographical space can also be not lined within the coverage. 
  • Fire attributable to policyholders’ personal negligence or on goal just isn’t lined within the coverage. Vehicle shouldn’t be deliberately placed on hearth to make a declare. This will certainly lead to a rejection of your declare. 

How a lot declare are you able to get?

Yohannan stated that the general prices shall be linked to the price of restore and substitute of elements. “Costs incurred by the owner would be the same as it would be if the damage was due to any other accident. Apart from the compulsory deductible amount, the depreciation rate will be applied to parts which need to be replaced. The rate of depreciation will depend on the age of the vehicle.”

In case the car is broken past restore, it will be declared as Total Loss and the IDV talked about within the coverage shall be paid.

“In case of fire, the maximum a policyholder will get is the Insured Declared Value (IDV), depending on the extent of damage, minus the depreciation and deductible. In case an EV catches fire, the claim pay-out will also depend on the warranty issued by the OEM,” stated Aditya Kumar, Vice President, Motor Underwriting, Digit Insurance.

Kumar additional stated that the insurer will both settle for or reject the declare, and if it’s accepted, the policyholder will obtain the declare quantity and relying on the extent of the damages, this may be the restore bills or the car’s IDV (in case of whole loss).

The pay-out may also rely upon the coverage phrases and circumstances.

Many instances, car fires solely harm part of the car, however in different instances, it may be utterly burnt, or the price of restore is perhaps greater than 75 per cent of the car’s Insured Declared Value. 

“Insurer will pay the maximum amount of your IDV. This is called a “total loss” and in such instances, your motor insurance coverage will reimburse you with this similar IDV quantity minus any deductibles and depreciation if any,” stated Goyal. 

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