Torrential rains and floods can wreak havoc on lives and properties, including vehicles. If your car gets swept away in floods or sustains significant damage, filing an insurance claim can help you recover your losses.

How Bike/Car insurance covers flood-related damages in simple terms.

Filing an FIR and Police Investigation: In case of a car being swept away due to floods, you must file a First Information Report (FIR) for the loss of the vehicle. Usually, the vehicle is located after a few days. If not found, the insurer will treat it as a total loss and pay out the Insured Declared Value (IDV) of the car.

Total Loss Claim: If the cost of repairing the vehicle exceeds 75 percent of its IDV, it is considered a total loss, and you will receive an amount equal to the IDV. If the repair cost is lower, the insurer will cover the repair expenses after deducting the compulsory deductible, which depends on the car’s engine capacity.

Parameters for Total Loss: In cases of massive damage, insurers may use specific parameters to determine total loss. These parameters can be based on the level of water submergence in the car, such as up to the floor level or dashboard level. High-end vehicles may have different calculations based on the location of electronic parts.

Depreciation and Add-ons: Floods can damage spare parts, and the claim amount may include applicable depreciation as per the policy. However, adding a zero-depreciation cover ensures the actual value of parts is paid out. An engine protect cover is beneficial if you drive through waterlogged areas.

Innovative Add-ons: Some insurers offer innovative add-ons like pay-as-you-use or motor floater covers. If you deactivated the coverage and your car was damaged while parked in the garage due to floods, the claim is usually paid. However, policies may vary, so it’s essential to check your specific terms and conditions.

Claims in Flood-Affected States: In states like Himachal Pradesh, Uttarakhand, Delhi, and Gurugram, insurance companies expect a surge in claims due to torrential rains. While car insurance claims are expected, home insurance claims are relatively low, as home insurance penetration in India is minimal.

To ensure a smooth claim process:

1. File an FIR for the loss of the car and cooperate with police investigations.
2. Purchase essential add-ons like zero depreciation and engine protect cover.
3. Enquire about innovative add-ons and their terms and conditions with the insurer.
4. Keep track of compulsory deductibles and deductible limits.