Bengaluru-Chennai Rains: Essential Tips For Vehicle Insurance Claims After Flood Damage

Chennai experienced heavy rainfall on Tuesday, resulting in widespread flooding across various areas. The intense downpour was caused by a low-pressure system over the Bay of Bengal, leading to knee-deep water on roads, which stranded many residents and created significant traffic disruptions. Similarly, Bengaluru faced relentless rains that disrupted daily activities, causing waterlogging and traffic jams in multiple locations throughout the city.

Flash floods and heavy rainfall are common occurrences in different regions of India each year. While the damage to homes often garners media attention, flooding can also severely impact vehicles.

If your vehicle sustains damage due to flooding, it is essential to contact your insurer to ascertain whether they will cover the repair costs. Below is vital information regarding vehicle insurance claims for flood damage and the process for filing a claim for flood-related vehicle damage

There are two kinds of policies that you can buy for your vehicle—third-party insurance and a comprehensive policy.

When it comes to third-party insurance, the coverage is a mandatory requirement for a vehicle. This insurance policy does not cover damages caused by natural disasters but only covers those caused to a third party due to an accident.

The second option, which is a comprehensive policy, will cover all natural calamities, including floods.

Policyholders need to ensure that they are aware of an important exclusion in this option as well. "This policy will cover everything, except the engine, in case of the flood, as it is not covered by default," said Paras Pasricha, business head of the motor insurance section at Policybazaar.

According to him, car owners in flood-prone cities should ensure that they have engine coverage. Any damage to the engine is usually a costly affair and will need to be met by the owner if not covered by the insurers.

Apart from this, there are certain add-ons that are recommended for vehicle owners in cities that experience seasonal flooding.

"There is a zero depreciation cover add-on, where there will be no deduction for depreciation on any parts of the vehicle," said Pasricha.

There is also an option of return to invoice cover in the case of total loss of the vehicle. Here, the difference is that the comprehensive policy will cover the loss but will have depreciated value deductions.

If an insured vehicle has been damaged, there may be certain grounds on which vehicle insurance claims may be rejected.

The first one is when the policy is third-party insurance, which clearly means that it does not cover the damages caused by natural disasters. The second reason could be the lack of engine coverage.

If the engine is damaged, the comprehensive cover alone does not usually cover this. If one does not have the engine add-on, the claim may be rejected. "Depreciation charges might apply as deductions if the add-on covers no depreciation," said Pasricha.