Insurance Claim for Flood Damaged Vehicles: An Introduction
Luckily you can schedule your meetings and control your diet per your suitability, but the bad news is that you can’t control natural disasters like floods, earthquakes, and hailstorms. Monsoon season brings alarming situations in major parts of the country. With the damages caused to the houses, flooding can also cause severe damage to vehicles. What if your car is stuck in the middle of the flood? You can’t even predict the extent of damages caused. The cost of repair and maintenance will be beyond comprehension. What will you do in such a situation?
Recently, cyclone Michaung hit Tamil Nadu’s Chennai, and severe damages are recorded. The smart ones have already anticipated the situation and secured their cars with vehicle insurance. But the question is, does your car insurance cover the flood damage? How much compensation can you expect from the company? How to file a claim for a car damaged by a flood? Reading this article, you will find all the answers to your questions. Stay with us!
What is Vehicle Insurance?
Under the Motor Vehicle Act of 1988, it is mandatory to have vehicle insurance for all vehicle owners, whether commercial or personal. Vehicle insurance is an agreement between the vehicle insurance company and the vehicle owner where the owner pays the premium, and the motor insurance company compensates for the loss and damage caused to the vehicle.
How Can Car Insurance Help You?
Car insurance works as a financial protection shield for you and your vehicle in case of accidents, theft, or other mishappenings beyond your control. Car insurance can also cover the injuries caused to you, your passenger, the vehicle, and other drivers (in case of an accident with another uninsured vehicle). Depending on the type of vehicle insurance you choose, your car is insured against natural calamities like floods and storms. It also covers the damages from accidents, fire, theft, man-made calamities, etc. These incidents can oppressively impact vehicles, causing damage to their machines, electrical systems, innards, and other critical factors. Repairing or replacing such vehicles can be a significant financial burden for owners. Car insurance claims can provide you with financial relief during similar situations.
Type of Vehicle Insurance in India to Purchase
There are two types of vehicle insurance available in India that a motor owner can purchase to receive the benefit under the cover.
Third Party Car Insurance: Third-party insurance is the basic requirement to drive a vehicle legally in India. This type of car insurance covers any legal liability to a third party when a mishap is caused by your vehicle. A police official asks for third-party insurance and checks whether it is active or not. If found inactive, you have to face penalties.
Comprehensive Car Insurance: As the name suggests, this kind of insurance provides comprehensive coverage to the third party and the damages caused to your car. Including protection against third-party liabilities, it also covers damages to your vehicle caused by natural calamities like floods, thunderstorms, etc. Depending on the terms and conditions of the comprehensive car insurance, it typically covers repairs, replacements, or reimbursement for flood-related damages. You can increase the comprehensive coverage by choosing add-ons like engine protectors, accessories covers, zero depreciation, etc.
Additional Considerations to Claim Flood Damage Car Insurance
While selecting a car insurance policy for flood damage, you need to consider the following points:
Policy Coverage: Understand the extent of coverage, including repair cost, replacement value, and deductibles, before making a car insurance policy purchase for flood damage.
Add-On Covers: Some add-on covers can be included in the policy against specific risks, like engine protection covers, hydrostatic lock covers, consumable covers, zero depreciation covers, etc.
Claim Process: Clearly understand the claim process and steps involved, including documentation requirements and timelines for filing claims.
24X7 Road Assistance: Emergency can occur without a prompt, and if you are stuck anywhere due to rain or flood, anytime roadside assistance should be included in the policy you purchase, including towing service or fuel assistance, etc.
What Types of Flood Damages Are Covered Under Car Insurance?
In India, where accidents, heavy rainfall, or natural calamities like floods are more common, having car insurance coverage against flood damage is crucial. During the monsoon season, different parts of India observe heavy rain and cyclones, causing great damage to property, vehicles and people. We are well aware of the waterlogging conditions and the heavy downpour caused by Cyclone Michaung in Chennai. People who have vehicles are desperately looking for what is covered under their vehicle insurance and what is not. Let’s look into the categories of damages covered under car insurance
- Partial or total car engine damage caused by sweeping water into the car engine.
- Malfunctioning or entire damage of gearbox caused by ingestion of flood water.
- Short-circuit, malfunctioning, damage to electric or electronic parts of the car.
- Damage caused to the car interior, including dampness, seats, carpet, and other soft furnishings.
- Any compromise with the structural integrity of the car and safety features.
Is Your Car Covered for Flood Damage?
If you have purchased comprehensive car insurance, you can claim the coverage caused by floodwater. Besides the fact that comprehensive coverage typically provides coverage against a range of perils, including flood damage, it is important to understand the terms and conditions or any exclusions while purchasing a plan. To get detailed information regarding the coverage and claim exclusions, you can connect with one of RenewBuy POSP advisors. There are the following exclusions that you need to consider
Waiting Period: Some insurance policies offer a waiting period of 15 to 30 days from the date of purchase of the policy. During this, no benefits can be claimed. Considering the waiting period before purchasing or adding flood damage coverage to the policy is important.
Policy Limitations: The comprehensive policies provide coverage against flood damage, but certain exclusions may apply in emergencies. Such as the damage caused by gross negligence, driving in prohibited areas, or driving through submerged areas when a warning is issued.
Depreciation: The concept of depreciation is applied to flood damage claims. The insurance considers the age and condition of the vehicle when determining the amount of reimbursement.
Deductibles: There are some deductible amounts specified in the policy that you need to consider while assessing the overall impact on the vehicle. This means the total reimbursement amount may be less than the replacement or repair cost.
How Can I File a Claim for Cars Damaged By Flood?
If you live in an area prone to flooding, even if you have taken all the precautions, the chances of damage to your vehicle are high. We can see that amid heavy rain due to Cyclone Michaung, the city has observed submerged localities and floating cars. You can file the claim for cars damaged by flood water. Here’s the complete process you need to follow.
Checklist Before Making a Flood Damage Insurance Claim
You need to consider some critical points before making a car insurance claim for flood damage.
- If your car is submerged in water, do not switch on the ignition or start to turn on the car
- Disconnect the battery and tow your car to the garage
- Don’t try to start the car even after the water diminishes. Wait for a few hours.
- Check the breaks for their functionality, chances are the water has affected the brake discs, lines, and pads, etc.
- File a car insurance claim instantly.
Process for An Insurance Claim for Flood Damaged Vehicle
The first essential thing to claim car insurance for flood damaged cars is to have comprehensive car insurance. The car insurance claim process for flood damage varies significantly depending on the motor insurance company you choose and the policy you purchase. The general process includes the following steps
Inform the Concerned Insurance Company: Most motor insurance companies have a dedicated helpline or claim support department you can reach out to. Inform as soon as possible about the damage to your car. Provide them with the necessary information like policy number, date and time of the incident, with brief details about the damage.
Collect Claim Details: Once you register the claim, the customer executive expert will provide you with a claim support reference number. You can use this to know about the claim settlement status.
Gather Evidence: Make sure you capture pictures and videos of the damaged car from different angles. This will help you support your claim.
Fill Out the Claim Form: You can fill out the car insurance claim form online or on paper at the nearest RTO office. Carefully fill out all the required information about the incident and the damage that occurred.
Keep the Documents Hands-On: Along with the claim form, you need to submit some necessary documents, such as a vehicle registration certificate, driving license, police report, or any other papers required by the insurer.
Vehicle Inspection: Once you submit the claim, the insurance company will arrange the inspection within 24 hours by sending a surveyor or representative. The surveyor assesses the extent of damage, estimates the repair costs, and determines the compensation amount.
Claim Settlement: The insurance company reviews the claim and the mentioned damages to determine the reimbursement amount based on the policy coverage and deductibles.
Repair Process: Once the claim is processed, you can start with the repair process at an authorized network garage or workshop. Make sure you thoroughly inspect the repair and pay the cost. If you have bought a cashless car insurance policy, the motor insurance company directly settle the bills with the network garage.
Final Documentation: Sign the final set of documents and get your car back through delivery.
Which Motor Insurance Company is Best to Buy a Plan for Claim Car Insurance for Flood Damage
You can consider the following motor insurance providers to avail of a hefty claim in case of car damage due to flood.
Policy Benefits:
- 100% Claim Settlement Ratio
- 6700+ Cashless Network Garages
- 24X7 Roadside Assistance
Policy Benefits:
- Super Simple Claims
- 25% Off on Premiums
- Attractive Add-on Covers
Policy Benefits:
- Doorstep Cashless Repairs
- 5700+ Cashless Network Garages
- 265 Support Branches
-
Liberty General/Car Insurance
Policy Benefits:
- Zero Documentation
- 5500+ Cashless Network Garages
- Roadside Assistance
-
Royal Sundaram Car Insurance
Policy Benefits:
- 98.4% Claim Settlement Ratio
- Vehicle Replacement Value Plus
- Affordable Insurance Premium
How Much Car Insurance Amount Can You Expect for Flood Damage?
The compensation for car insurance for flood damage depends upon the condition and the year of the car used. Basically, if you are going to file a car insurance claim for flood damage, you can expect an insured declared value for a brand new car upto 95% of the showroom value of the car. The insured declared value (IDV) depreciates by around 10 per cent every year.
Summing Up
Reading here, you must have understood that claiming car insurance for flood damage is not difficult as it may seem. You cannot predict what the rainy season brings, but you can surely be prepared for the worst scenarios with the right motor insurance. Are you finding it difficult to select one motor insurance or already have one and are looking for renewal or claim process assistance? Connect with RenewBuy POSP experts and get expert advice. We guide you through the entire process, from selecting the right motor insurance from the best motor insurance company to filing a claim for car damage due to a flood. Let’s connect to know more about car insurance for flood damage!