Importance of HDFC Ergo EMI Protector Plus during monsoon

Posted on: Jul 22, 2024 | 3 mins | Written by: HDFC ERGO Team

Importance of HDFC Ergo EMI Protector Plus during monsoon

Monsoon season is noted for creating ample havoc across various parts of the country. The nature of this havoc is multiple depending on the intensity. The areas that get the most rainfall within a short span run most of the risk of flood. Mountainous terrains are even riskier with chances of heavy landslides hovering throughout the season. Considering such serious circumstances of getting affected by natural disasters, it is best to stay protected with proper insurance coverage beforehand.

It is best to keep your home and vehicles protected too under competent insurance policy coverage. Befitting comprehensive car insurance is enough to protect your beloved vehicle.

In this article, we will highlight the importance of the HDFC Ergo EMI Protector Plus scheme.

What is meant by EMI?

EMI is the abbreviation for Equated Monthly Installments. In the case of a car loan, you need to pay a fixed amount of the remaining car price after the initial down payment at regular intervals. The market is loaded with several banks and other financial organizations offering this EMI facility. You need to pay a pre-fixed interest on the principal. The client needs to pay this total amount including both the interest and principal in parts every month and the duration depends on the loan and EMI amount decided.

Importance of EMI Protector

One of the most highlighting benefits of a comprehensive car insurance plan is that you can enhance its coverage span by adding befitting riders to it according to your needs. You need to pay an additional premium for each rider you add. Some of the popular and important add-ons in car insurance include Zero Depreciation Cover, Engine Protection Cover, Roadside Assistance Cover, etc.

However, the EMI Protector Plus add-on holds a special significance. If you purchase this cover, it will protect you from unprecedented challenging situations that prevent you from making punctual EMI payments.

This proves to be especially helpful during monsoons, as the risk of being suddenly struck by any natural disaster remains quite high during this season. Under such challenging situations, you will definitely face multiple financial losses making it all the more difficult for you to pay the EMI dues.

Monsoon season is also noted for rising road accidents due to slippery roads, blurriness due to heavy rains, uncovered water-filled potholes and broken roads.

If you are protected under the EMI Protector add-on, you can skip paying your EMI dues without incurring any losses for a stipulated period, depending on the terms of the plan.

How does the EMI Protector add-on work?

HDFC Ergo EMI Protector is a value-added rider available for comprehensive car insurance cover. It has been introduced to relieve car owners from paying EMI for car loans under pressing and challenging circumstances, like accidents, loss of job, extreme health issues, etc.

Usually, this protection works for a stipulated time frame as per the chosen policy terms. During that phase, this add-on will cover for the pending EMI dues, when you are busy handling unprecedented challenges and damages.

You do not need to struggle to arrange for the necessary funds for clearing EMI dues during such tough times. Suppose you have faced an accident and your vehicle needs to remain in the garage for 30 days for complete repair and necessary replacements, the EMI Protection cover will cover the EMI for the time being allowing you the necessary recovery time, without running the risk of defaulting your ongoing car loan.

Depending on the terms of the plan, if your vehicle remains in the garage for 6-15 days, you can even enjoy a 50% coverage of your first car EMI. If the repairing time exceeds this particular time of 15 days, then the concerned insurance provider will entirely pay the designated EMI amount for that particular month. If the concerned vehicle remains in the garage for 30 days, then the insurance company will pay the 2nd EMI too, and if it remains there for 60 days, then it will clear the third EMI dues too.

You must note that the EMI Protector Plus add-on exclusively works in the case of damages due to natural disasters, fire, theft, accident, and others, as has been mentioned in the car insurance policy document. You must read the policy papers well and clarify any ambiguity before the final purchase.

Submitting a claim for EMI Protector add-on cover

In this case, as a policyholder, you must first inform your chosen insurance provider regarding the damage at the earliest. After receiving this intimation, the insurance authority will send an inspector/surveyor/loss assessor for a critical evaluation of the damages that happened to the concerned vehicle.

Once the verification is over and the responsible authority gives consent, the workshop mechanics can begin the necessary repair and replacement works.

While filing a specific claim under this particular add-on, you must submit the following documents along with your claim settlement application:

1. The certified EMI scheduled as you have received from your designated lender

2. EMI payment records for the last 12 months

3. Duly filled and signed claim form, identity proof like an Aadhaar card, PAN card, repairs estimate from the workshop, etc.

Once all the documents are submitted, they will be duly verified by the authorities. They will then accordingly validate and initiate claim processing as per the policy terms and conditions.

Inclusions of HDFC Ergo EMI Protector Plus add-on

If, as a valid policyholder, you pay an additional premium for this particular rider, HDFC Ergo will duly compensate you as follows:

1. If the concerned vehicle faces an accident which leads to it being parked in the garage for over 6 days, then the insurer will duly pay 50% of the total EMI due in that month, after careful verification.

2. The designated waiting period will begin from the next day of the damaging event when the concerned vehicle is moved to the workshop for fixation or from that particular date when all the repair parts are available as per the confirmation of the repairer, whichever comes later.

3. You can make up to two such claims during the tenure of the plan.

Exclusions of HDFC Ergo EMI Protector Plus add-on

1. If the spare parts remain unavailable, then those number of days will be excluded

2. Any reluctance or failure to cooperate either by the policyholder concerned or the authorised individual working on behalf of the insured

3. The company will not pay any cost incurred due to penalty, penal interest, or any other charges.

4. Not apply to total theft, total loss, or constructive total loss

Special circumstances

Certain special circumstances observed by the HDFC Ergo EMI Protector Plus add-on include:

1. Endorsement of the lease/hypothecation clause in the policy schedule

2. An admissible claim under Section 1 of the plan

3. The benefit amount to be paid to the insured after receiving NOC from the respective financer

Conclusion

Insurance experts recommend purchasing this EMI Protect cover add-on along with a comprehensive car policy to ensure efficient financial management during tough times. It allows you to enjoy security despite not being able to pay the EMI due on time. The insurer will handle the issue and cover for you under specific and genuine circumstances, as per the policy terms.

Disclaimer The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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