Is your car insurance ready for Mumbai rains? Many policies won’t cover this damage; check details

Mumbai witnessed intense downpours on Monday as the southwest monsoon made an early and dramatic entry into the city, shattering a 107-year-old record for the highest rainfall in May.

According to the India Meteorological Department (IMD), the Colaba observatory recorded 135.4 mm of rain in the 24 hours ending 8:30 am on Monday, categorised as “very heavy rain.” In comparison, the Santacruz observatory in the suburbs logged 33.5 mm during the same period.

The heavy rainfall led to waterlogging in several parts of Mumbai, including low-lying areas in South Mumbai that are rarely affected. Peddar Road, Nepean Sea Road, and parts of Khar reported water accumulation, affecting local traffic and residents.

With floodwaters entering vehicles, concerns over engine and electrical damage have risen. Insurance experts warn that standard motor insurance policies may not cover such losses unless specific add-ons are included.

Damage caused by water entering vehicles can result in costly repairs to the engine, electrical systems, and interiors. It is important for vehicle owners to select a comprehensive car insurance policy that includes protection against flood-related damages. While there are various insurance plans and add-ons available in the market, it is essential to choose a policy that provides adequate coverage to avoid financial burdens in the event of flood damage.

"One of the most important cover in car insurance is the Engine Protection which provides protection to your engine against water ingression losses. Ensure that your policy has this add on cover. Also, if the car is stuck in water, do not try to start it as the water may enter in the engine and cases damage . Engine repairs and replacements can be very expensive and this cover helps alleviate the financial burden of these repairs," said Shashi Kant Dahuja, Executive Director & Chief Underwriting Officer, Shriram General Insurance.

Jigar Gada, President-Product & UW-Personal Lines & Analytics, Liberty General Insurance, said: “Heavy rains and floods can cause significant damage to car engines, often not covered under standard policies." 

He added that to safeguard your vehicle, consider these actions:
> Opt for Comprehensive Coverage: Unlike basic third-party insurance, a comprehensive policy typically covers damage from natural disasters like floods
> Consider Engine Protection Add-on: For specific engine damage due to water ingress or lubricant leakage, an ‘Engine Protection’ add on is crucial. This enhances your comprehensive policy.
> Zero depreciation Add-on: The ensures you receive the full claim amount for repairs without depreciation being factored in, valuable for extensive flood damage.
> Avoid Starting a Submerged Car: Doing so can cause further engine damage, often uninsured, engine damage.
> Inform Insurer Promptly: In case of flood damage, immediately contact your insurance provider and document the damage for a smoother claims process."

Gaurav Arora, Chief Reinsurance, UW & Claims for Property & Casualty, ICICI Lombard, said: "If your vehicle is affected by flooding, the first step is to notify your insurance provider as soon as possible. You can raise a claim through any of the following convenient channels (for ICICI Lombard):
Toll-Free Helpline: 1800 2666
IL TakeCare App
WhatsApp: +91 77382 82666
Website: Visit the official site to register your claim."

Arora added: "Once your claim is registered, a Dedicated Claims Manager will promptly get your vehicle inspected and begin the assessment process. The good news is that no additional documentation is required for flood-related damage claims. To ensure faster repairs, it is recommended to take the vehicle to the preferred cashless garages nearest to your location. This way, the insurer will directly settle the approved claim amount with the garage, and you’ll only need to pay the difference (if any), based on your policy coverage."