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Is flood damage covered by your car insurance? Check here

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Is flood damage covered by your car insurance? Check here


Floods can cause chaos to a car, damage engines and electrical systems.

Is flood damage covered by your car insurance? Check here
Floods can cause chaos to a car, damage engines and electrical systems. This means one should surely have a car insurance as any comprehensive car insurance cover losses or damages caused by natural calamities, such as floods, cyclones and hailstorms.
However, there are several inclusions and exclusions to it, which may vary from one insurer to another.
Inclusions and exclusions
According to Policybazaar, an online insurance marketplace, there are two types of damages caused by flood to any car - engine damage and accessories damage. Generally, the insurance companies cover both engine and upholstery damage, which could otherwise be very heavy on pockets. But if the engine and/or its child parts receive any damage due to water ingression and oil leakage, a standard comprehensive policy doesn’t support it. This is because engine damage comes under electrical and mechanical breakdown.
Ad-ons to consider
Sajja Praveen Chowdary, Head-Motor Insurance, Policybazaar, suggests individuals to always buy an engine protector add-on cover, which ranges from Rs 1,000 to Rs 10,000.
"These come in handy and cover engine damage caused by the floods," he opines.
"The engine add-on cover offers compensation for expenses incurred while fixing the indirect damage done by water ingression or leakage of lubricating oil leading to loss or damage to engine parts, differential parts, and gearbox parts," further explains Rakesh Goyal, Director, Probus Insurance, an insurtech broking company.
Apart from this customers should also look to have an invoice-protection cover.
"This add-on covers the gap between the insured declared value and the invoice value of the car," says Chowdary.
Additionally, consumables are also not covered under the policy and one must buy an add-on cover even for consumable. Consumable items of a car include nut and bolt, screw, washer, grease, lubricant, clips, A/C gas, bearings, distilled water, engine oil, oil filter, fuel filter, break oil and related parts.
These need to be replaced or refilled frequently because of continuous wear and tear or usage.
"Such add-on insurance covers offer additional protection and coverage to the car during natural calamities," suggests Goyal.
Other measures to follow
Along with getting complete protection, Gunjan Ghai, VP & Head of Insurance, PhonePe advises car owners to follow the below-mentioned steps in case their car is submerged during a flood:
  • Do not switch on the ignition or attempt to start the car by jump-starting it –
  • even if the water has receded.
  • Tow the vehicle to the nearest garage after disconnecting the battery.
  • At the garage, ask the mechanic to do a thorough check of the car brakes
  • (these have a higher chance of getting damaged as well)
    How to put a claim
    In order to claim car insurance during floods, customers can call their insurers at the call center number and notify the claim. The number may be accessible on the website/app of the insurer. It may also be available in the email containing the policy PDF sent to the customer’s email address. Customers can also email the insurance partner to notify a claim.
    "After contacting the insurer, customers can get their vehicles towed to a garage of their choice or choose from a wide network of garages across the country. Once the repairs are done, and the payment settled (depending on
    reimbursement or payment made directly by the insurer to the garage partner), the customer’s car is ready to be back on the road again," elaborates Ghai.
    Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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