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Flood damage is not something unheard of. Every year in India, heavy rainfall is noted in several parts of the country and some of them are unfortunate to witness floods as well. The worst affected areas are reported to have severe damage caused by the overflow of water everywhere, which includes loss of life and property both. A number of cars parked on the roads too get drifted away in the water or are completely damaged. Can this huge loss be covered by car insurance? Let’s find out in this post.
Yes, car insurance does cover flood damage, provided you have purchased a comprehensive insurance policy. A comprehensive plan is one that covers costs incurred on the repair or replacement of a car, especially after the damage has been done during a natural or man-made disaster.
Natural disasters include calamities caused by nature such as floods, earthquakes, droughts, hurricanes, cyclones, and the like. Man-made disasters refer to damage caused by events that are driven by man. Examples include fire, road accident, theft, and the like.
A comprehensive car insurance policy is generally costlier but can cover huge losses caused during flood damage. The car may require repairs that cost a lot or may be completely damaged due to the flood effect. In both the cases, the owner is likely to incur a huge loss, which can be covered to a large extent with a comprehensive plan.
A comprehensive car insurance plan is different from a third-party car insurance policy. The latter specifically provides coverage against damage caused to a third-party person or vehicle. This is a basic insurance plan that offers financial protection to a third-party in case of any damage caused by the policyholder to the former.
Third-party car insurance is therefore different from a comprehensive insurance plan which provides complete protection to the car and the car owner, including third-party liabilities. Also, comprehensive insurance is an optional plan as against third-party car insurance which is mandatory to purchase as per the law.
In case of flood, your car may suffer the following types of damages:
Floods often cause short circuits, causing damage to the normal functioning of the electrical and electronic components of the car, such as the warning lights on the dashboard.
During flood, water may enter the engine too, causing its internal components to damage either partially or completely.
The interiors of the car, such as the seats, foot mat/carpet, and other furnishings can also get damp due to the water entering the car. It may also damage the upholstery.
The water can get inside the gearbox, causing it to stop functioning.
You can buy comprehensive car insurance online to seek protection against damage to the car from floods. However, your comprehensive policy may not be able to provide complete coverage against certain losses caused to the car gearbox or engine due to flood water. Hence, to cover the repair or damage costs incurred for the internal parts of the car, you may need to buy certain riders in addition to your base plan for extra coverage.
Here are some car add-on riders that provide complete coverage against flood damage to your car:
Generally, a comprehensive plan will not cover the cost of replacing consumable items in the car. These include nuts and bolts, engine oil, grease, washers, and the like. The add-on cover for consumables covers the cost involved in replacing or repairing some of these items due to damage to their functioning caused by the flood.
Engine repair involves the maximum cost and in the absence of an add-on cover, you may have to shell out the entire sum from your pocket. Hence, it would be wise to purchase this rider.
In case of waterlogging on the streets during floods, the car may break down in the middle of the road. This is where the roadside assistance rider can help. Your insurer would arrange for a mechanic nearby to reach you or get your car towed away to the closest repair shop.
Yes, your car insurance policy would cover the losses incurred due to damage by floods; however, it is possible to prevent such damage by following these measures:
In heavy rainfall areas, always take care to park your vehicle at an elevated ground surface. This majorly lowers the risk of water ingression causing damage to the internal parts and the furnishings of the car.
When there is heavy rain outside, disconnect the battery of your car for that duration. This would help avoid short circuits in case of water ingression into the engine and internal electrical parts.
Make sure they are always rolled up and that there is no gap to allow water to enter the car.
Flood is a natural phenomenon and hence can rarely be avoided. However, you can definitely avoid damage to your vehicle by following the above steps. In case of car damage due to floods, you can be prepared with a comprehensive car insurance policy.
Make sure to complete your car insurance renewal online each time upon expiry to avoid financial loss in case of sudden mishap. To look for a reasonable car insurance policy online, do a thorough research on the internet for the various plans available from different insurers. This would give you a fair idea of the best car insurance in India and help you make an informed choice.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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