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

Over the past week, Northern India has experienced an unprecedented amount of flash rains and subsequent flooding of major rivers. One such river, the Yamuna, saw its water level rise to an unprecedented 208.66 metres for over 48 hours, causing disruptions to the daily lives of citizens in Delhi. The heavy rains, ranging from Himachal Pradesh to the capital city, have resulted in unimaginable destruction, including damage to personal property such as cars, two-wheelers, and commercial transport vehicles. The aftermath will be particularly challenging for those who did not obtain the appropriate insurance coverage.

In terms of insurance claims, it is crucial to have a comprehensive policy. Those vehicle owners who invested in a comprehensive insurance policy will receive coverage for flood damage, while those who only have third-party insurance, mandatory by law, will not be protected. Although a comprehensive policy is optional, some owners choose not to pursue it due to the slightly higher premium. However, this kind of policy is specifically designed to provide compensation for damages caused by floods, earthquakes, cyclones, and other natural disasters.

For those unfortunate enough to have lost their vehicles in the recent flooding disaster, we recommend not attempting to repair them and instead filing a claim in accordance with their insurance policy guidelines. This is because floodwater can infiltrate critical mechanical components of the engine, such as the air-intake, cylinders, and pistons. In addition to rust, the water leaves behind silt that further complicates repair efforts. Rebuilding an engine that has been affected by a flood is not financially viable. Furthermore, the electrical wiring systems are likely to be damaged, and the upholstery of flood-damaged cars will also be ruined by the water.