Key Insights at a glance

Claim costs surge 33% during monsoon, driven by worsening weather, engine & electrical damage and poor road conditions.

Protection Gap Persists: 80% without engine cover despite high RSA adoption

Tier-2 & 3 cities drive 75% of monsoon claims amid poor resilience

Nearly 13% spike in monsoon claims since 2023

1.Average claim rises 33% in monsoon, driven by engine & electrical damage

During monsoon, the average motor insurance claim increases from ₹30,000 to ₹40,000, a 33% spike largely due to water-induced engine failure and electrical breakdowns. This sharp rise underscores the critical need for engine protection add-ons and proactive seasonal coverage planning.

2.Protection Gap Persists: 80% lack engine protection add-on

With only 20% of policyholders opting for engine protection, a vast 80% remain exposed to water-related engine damage—one of the costliest and most common monsoon risks. Although 50% have zero depreciation cover, the other half still face higher out-of-pocket expenses, pointing to a significant protection gap during the monsoon season.

3.Good News : ~75% of customers opt for RSA Add-On, high RSA adoption

Nearly 75% of customers opt for the Roadside Assistance (RSA) add-on, which proves especially useful during the monsoon. This add-on proves useful during the monsoon for issues like vehicle breakdowns caused by water ingestion or electrical failures.

4.Non-Metros see 3 in 4 monsoon claims, revealing deeper infrastructure gap

Waterlogging, poor drainage, rain-induced collisions, and high vehicle density make urban centres namely Delhi, Himachal, Mumbai, Chennai, Pune, Nasik and Bengaluru as hotspots for monsoon-related motor insurance claims, yet 74–75% of all such claims between 2023 and 2025 came from Tier-2 and Tier-3 cities. This insight underscores deeper infrastructure vulnerabilities and lack of resilience in smaller towns across India.

5.Rains Trigger nearly 13 % Rise in Claims (2023–25)

Monsoon months (June–September) account for an increasing share of annual motor insurance claims. Year on year, motor insurance claims rose by 3.2% in 2024 and 9.4% in 2025, leading to a 12.9% surge between 2023 and 2025- reflecting the worsening impact of weather and deteriorating road infrastructure.

6.Hatchbacks Lead with 54% of Monsoon Claims

Hatchbacks account for 54% of monsoon-related claims, primarily due to their low ground clearance, as that increases vulnerability to water damage. Sedans (26%) and SUVs (20%) follow them.

7.SUVs Account for 20% of Claims but Lead in Repair Costs

Though SUVs make up just 20% of monsoon-related claims, they incur the highest average claim value at ₹60,000, compared to ₹35,000 for hatchbacks and ₹45,000 for sedans—highlighting fewer incidents but significantly higher repair cost.

Spokesperson’s Quote –

Paras Pasricha, Business Head of Motor Insurance at Policybazaar.com, said this year, the rains have exposed more risks than resilience. What's more concerning is that 80% of people remain unaware of critical protection covers like engine protection—a gap seen across both metros and non-metros. While metro cities like Delhi, Himachal, Mumbai, Chennai, Pune, Nasik, and Bengaluru report the highest number of claims, non-metros account for 75% of all monsoon-related motor insurance claims, driven by the sheer volume of Tier-2 and Tier-3 towns across India. To be better prepared for the realities of India’s monsoon challenges, it is crucial for vehicle owners to opt for essential add-ons like engine protection cover, roadside assistance, Zero depreciation cover etc. These covers not only reduce financial burden during unexpected breakdowns but also offer much-needed peace of mind in adverse weather conditions.