Change Please enter Captcha
x
x

Please enter your details

Please enter the name
+91 Please enter the mobile number
Please select the product
Change Please enter captcha

MAY I

HELP YOU?

Call Toll Free

1800 2666

OR

x
imgs
expert_blog
 

What is Consequential Loss

Posted by - Amitabh Jain, Head - Motor Underwriting & Claims
September 10 2014
Monsoon is here and incidents of water logging leading to vehicle breakdown, traffic jams are making news headlines again. Even as the administration and we as citizens make efforts towards a trouble free monsoon, invariably there will be days when we come across such situations in the coming weeks.
As vehicle owners, we can prepare better by ensuring that our vehicle is serviced and has undergone pre-monsoon check up. Apart from this, it is extremely important for us to depict the right behaviour when it comes to situations of water logging on roads.

Today, more and more cars as well as motor bikes are installed with high technology equipments to ensure a safe and comfortable drive. However, the same technology also brings its own disadvantages when it comes to the monsoon, especially in situations of driving through water logged areas. You may have driven or seen other motorists driving through water and the car engine suddenly stalling. This is a phenomenon known as hydrostatic loss and can impact any vehicle including those with high technology and equally high price tags. It is important to understand the reason behind this phenomenon and how to avoid your car from getting stalled in a water-logged area.

As you would be aware, vehicle engines work on the principle of combustion. This involves continuous intake of air supply to compress and ignite the fuel in the engine cylinder to create the necessary force to drive the engine. In high end cars, this suction capacity is multiplied several times given the need for high power. While driving through a water logged area, water can find its way into the engine through the air intake valve. Since water cannot be compressed, it leads to a situation where the engine cylinder rod bends or breaks leading to engine seizure. The problem gets aggravated when the driver tries to forcibly turn on the vehicle or crank the engine resulting in heavy damage to the engine.

It is important to note that engine damage due to hydrostatic loss is classified as a consequential loss as per motor insurance regulations and is not covered under a regular motor insurance policy. This is because the damage is a consequence of a certain action resulting from having cranked the engine and not an outcome of an uncertain event. The cost of engine repair in this case would be minimum `1 lakhs for a small car and around `3 lakhs for a mid-size car. For SUVs and premium vehicles, it can be upwards of `10 lakhs.

So how do we avoid such incidents? As they say, prevention is better than cure. It is best to avoid driving your vehicle through water logged areas. If you were compelled to do so and the vehicle was to stall, avoid cranking the engine under any circumstances. Instead, call your insurance company or a towing service provider to get the vehicle towed away safely to a garage or service station. The critical point is to avoid trying to move your vehicle by trying to restart the engine.

In addition to the preventive approach, one can also consider purchasing an add-on cover that insurers now offer to cover such losses. With this cover, you can avoid paying for the damages that occur to the vehicle engine if the same stalls while driving through a water-logged area. Priced at only around 10% of your motor insurance cover, it can save you from incurring heavy expenses towards engine repair from hydro-static loss. It is important that you avail this cover at the time of purchasing or renewing your motor insurance policy.

Monsoons bring relief from the heat but also bring their set of problems, especially when on the road. It is best to show precaution and be equipped with the right cover to financially secure ourselves from high losses arising out of vehicle stalling in water logged situations.

So if you were holding any of the above misperceptions, rest assured, go ahead and purchase a comprehensive student travel insurance right here before you leave for your dream destination.

Write a review

Related articles

07

July 2014
  • Break in period in motor insurance renewal

    Have you ever forgotten to pay your utility bills on time or experienced a situation where you missed paying the minimum dues on your Credit Card outstanding? If so, you would be aware of the difficulties
    Posted By - Amitabh Jain
    Read More

09

April 2014
  • Add on Covers - Get the Best out of Your Motor Insurance policy!

    Motor Insurance as a product has undergone tremendous innovation and customization in the last few years. However, the same cannot be said about customer behavior.
    Posted By - Amitabh Jain
    Read More

19

April 2014
  • Click the button and kick the ignition for Safe Riding

    Two wheelers have always been the most preferred mode of vehicle to fulfill the adventurous needs of a person.
    Posted By - Amitabh Jain
    Read More

05

August 2014
  • Don't let your car insurance lapse

    While there are instances when one can genuinely forget renewing the motor insurance premium, some vehicle owners intentionally do not renew the motor insurance policy
    Posted By - Amitabh Jain
    Read More

22

May 2014
  • Few steps to cut down on your Car Insurance Premium

    Motor insurance premiums are set to rise as third party motor insurance covers have undergone an increase as per regulatory guidelines release recently. Amid a scenario where inflation remains persistently high
    Posted By - Amitabh Jain
    Read More

08

April 2014
  • Add on Covers - Get the Best out of Your Motor Insurance policy!

    There are 3 parts of the healthcare triangle providers of healthcare viz hospitals, consumers of healthcare viz patients and financiers of healthcare viz insurers. Worldwide in various countries there are enough models and research
    Posted By - Amitabh Jain
    Read More

15

April 2014
  • Insure your car against thefts!

    Who would have thought that 3 SUV's would be stolen in a span of five minutes in broad day light in a city like Mumbai! This incident left surprised not only the owners of the vehicles but also the local police personnel who are investigating the incident.
    Posted By - Amitabh Jain
    Read More

12

January 2015
  • Natural or Manmade disaster - Get your vehicle engine covered

    A vehicle is one of the most prized possessions that we purchase during our lifetime. We take utmost care in protecting it from wear & tear and external damages. Though an insurance policy does cover repairs when the vehicle is damaged during an accident
    Posted By - Amitabh Jain
    Read More

25

January 2015
  • Motor insurance outlook for 2015

    2014 was a mixed bag for the automobile industry. Passenger cars as a segment witnessed muted consumer demand. Commercial vehicles that have been registering de-growth since 2011-12 continued to decline at -7% (Apr-Nov'14).
    Posted By - Amitabh Jain
    Read More