Yamuna Floods: Does your car/bike insurance cover flood damage?

Over the past week, Northern India saw unprecedented levels of flash rains and subsequent flooding of major rivers such as the Yamuna. In Delhi, the Yamuna river’s water level rose to an unprecedented 208.66 metres for over 48 hours and disrupted daily lives of the citizens across the city. Unimaginable destruction has been caused due to heavy rains from Himachal Pradesh to the capital city of Delhi, including people’s personal property such as passengers cars, two-wheelers and commercial transport vehicles. In the aftermath, those who have followed the law and have proper insurance will be able to recover their investment, however, those who were neglectful to get the right kind of insurance policy, will have to suffer the loss without any chance of financial relief.

In terms of insurance claim, ‘comprehensive policy’ are the keywords. Vehicles owners that invested in a comprehensive insurance policy, will get flood damage cover and those who went for just a third-party insurance which is mandatory by law, will not be covered for any flood damage to their vehicles. Opting for a comprehensive policy is always optional and not mandatory like third-party insurance, so owners sometimes forego it. However at a slightly higher premium, a comprehensive policy is tailored to cover damages in events of flood, earthquakes, cyclones and other natural disasters.

For those who have had the misfortune of losing their precious vehicle to flood damage in the recent disaster, we advise you to not try and repair their vehicles and to file a claim as per your insurance policy guidelines. This is because in the event of a flood, the water enters crucial mechanical parts of the engine such as the air-intake, cylinders and pistons. Apart from the obvious rust damage, this breach of water also leaves behind silt that further makes a flood-damaged vehicle difficult to repair. The full rebuild of a flood-affected engine does not make financial sense. Then there is the issue of damaged electrical wiring systems and even the upholstery of a flood affected car gets ruined due to the water.