Car Insurance: How much flood damage will regular comprehensive car insurance cover?

Heavy rains in Bengaluru have inundated major roads, luxury apartment complexes and homes. General insurance companies have already started receiving notifications of claims for damage to vehicles caused by floods.

If your car is damaged or sunk by a flood, here’s what you need to know about what your regular comprehensive car insurance policy covers and the claims settlement process.

A regular comprehensive car insurance policy without any extras like engine protection, covering only losses due to natural disasters such as hurricanes, lightning, earthquakes, landslides, floods, hurricanes, storms, hurricanes and floods. Any subsequent loss due to a natural disaster is not covered. For example, a car engine failure due to water entering the engine is a consequential loss.

Extent of damage to the car due to the flood
The vehicle may be submerged to the level of the bumper, the instrument panel, or even the roof in the event of a flood. If the water reaches the bumper level in your car, the damage will be minimal; It can be repaired by a mechanic without much complications. If the vehicle is submerged in the dashboard or roof, you will need to contact the insurance company immediately and inform them of the details of the damage. Either way, the engine, electronic control unit (ECM), upholstery, electronic parts and all of the car’s lights can be damaged, said Susheel Tejuja, principal, founder and managing director of

What should the owner do if his/her car has been sunk?
“Do not operate the vehicle after the flood waters have receded as it may damage the engine,” said Nitin Dew, Chief Technical Officer, Edelweiss General Insurance.

Car insurance policy holders need to submit relevant documents to the insurance company for the claims settlement process. So, click several pictures or videos of your submerged car and keep them close at hand, suggest insurance companies. You need to submit detailed photos of the vehicle to show the extent of the damage.

How much damage will a normal comprehensive car insurance cover cover?
If you have a regular comprehensive car insurance policy, Deo said, every part of the car will be covered under it. However, this is subject to the exclusions and conditions mentioned in the vehicle insurance policy. For example, the standard comprehensive policy doesn’t cover engine failure due to water logging, as it is considered a consequential loss, according to Anaimesh Das, senior manager, ACKO auto insurance.

In the event of flood damage, insurance companies usually provide protection for two scenarios: a)

Washing the car away b) The car was affected by the ingress of water as the water enters the interior

Experts explained that the parts and / or cabin of the car, causing damage.

“The compensation depends on the condition of the old (used) car and the years of its use,” Das noted.

“If the repair cost exceeds 75 percent of the vehicle’s Authorized Value (IDV), it will be

It is specified under Total Loss as stated in the policy,” Teguja explained.

The Insured Declared Value or IDV of a brand new vehicle is taken at 95 percent of the showroom price

Car, 80 percent for a one-year-old car, 70 percent for a two-year-old car, 60 percent for a one-year-old car, and 60 percent for a three-year-old car –

A year old car, etc., according to a standard scheme. The value of the car decreases by about 10 percent

every year.

In cases of total damage, the insurance company will usually follow a standard discount policy – 1,000 rupees if the vehicle is less than 1500 cc (eg Swift, i20, etc.) and 2,000 rupees if the vehicle is over 1500 cc (eg XUV, Innova, etc.) that). This discount is called the “Standard Discount” and is mentioned in every policy. Therefore, the customer receives IDV minus – deductible standard deductible for the total damage.

If your vehicle is partially damaged and the repair cost is between 60-75 percent of the IDV, the claim will be settled on a cash loss basis, explained Tijuga. In the event of damages to various parts of the vehicle (but not the total damage or theft of the vehicle), the settlement amount depends on the damaged parts.

In such cases, insurance companies will pay 60-70 percent of the cost of repair, but this percentage is not fixed, experts say. They added that the insurance company and the policyholder mutually decide how much to pay before the vehicle is repaired. Do note that the amount will depend on the age and condition of the vehicle as well as your negotiating skills.

“If the repair cost is less than 60 percent of the IDV, the amount of the claim will be determined based on the age of the vehicle and the depreciation applied to the parts,” Tejuja stated.

In the case of upholstery, lights or any other parts pre-installed in cars have been damaged due to

Flood, the customer has to pay the depreciation amount for the cost of the car part or component


Why should the car owner pay for depreciation
Comprehensive auto insurance usually pays only the actual market value or depreciated value of any part. For example, a 4-year-old car would have a market value much lower than a new car, i.e. its value would have gone down. This concept applies to car parts as well. Therefore, the insurance company is only responsible for paying the depreciated value of any car part that must be replaced due to damage subject to the exclusions in


“For metal parts, depreciation will depend on the age of the vehicle. For example, 10 percent for a vehicle up to two years old, 15 percent for a vehicle between two and three years old, and similarly. For vehicles older than 10 years, the insurance company can deduct Up to 50 percent for depreciation

Plastic parts are 50 percent vulnerable to wear.”

“In the event of impact damage, the customer gets the claim amount minus the parts depreciation.

While the consumption depends on the damaged parts, almost the customer has to dispose of them

It’s between 25 and 30 percent out of pocket, Das said.

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