How to claim Insurance for your Car after Flood

Learn about filing FIRs, damage assessments, and claim processes, ensuring timely support and compensation for affected vehicles.

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The recent onslaught of torrential rains, landslides, and flash floods in North India - Himachal Pradesh and Delhi has wreaked havoc on properties, with automobiles bearing the brunt of nature's fury.

As videos surface online, showcasing cars helplessly swept away like toys in the floods, car owners find themselves grappling with substantial losses. However, amidst the devastation, there is a glimmer of hope - insurance coverage comes to the rescue.

Types of Insurance Coverage

When it comes to insuring your vehicle, two primary options are available: third-party liability and package cover. The former, mandated by law, provides coverage for damages caused to third parties. On the other hand, the latter, known as comprehensive insurance, extends protection against both third-party liabilities and loss or damage to the insured vehicle itself.

Availing insurance coverage for damaged cars

1. File an FIR for Loss

In the unfortunate event of your car being swept away during a flood or any natural calamity, the first step is to file a First Information Report (FIR) at the nearest police station. This document serves as essential evidence in insurance claims processing. Typically, authorities locate the vehicle within a few days.

However, if it remains unrecovered, the insurance company deems it a total loss, and you become eligible for the insured declared value (IDV) payout - the maximum amount the insurer will compensate for your car's market value.

In the event, that the car is recovered, and the cost of repairs surpasses 75 percent of the IDV, the insurer compensates with an amount equal to the IDV. Alternatively, if the damages amount to less than this threshold, the insurer approves repair expenses. In cases of severe damage where repair becomes unviable, the insurer may employ additional criteria to determine if the case qualifies as a total loss.

2. Promptly inform the Insurer

It is crucial to notify your insurance company promptly after the loss or damage occurs. If the damage is substantial, avoid taking any actions independently before informing and consulting with the insurer.

In situations involving the complete loss of the vehicle, communicate with the insurance provider after filing the FIR, as it bolsters your claim with solid legal proof. Provide all relevant details, such as the date, time, and location of the incident, to expedite the process.

3. Transfer the vehicle to a garage

Upon locating the damaged vehicle, the insurance provider will facilitate its transfer to an authorized garage for inspection and repair. The garage will closely evaluate the extent of damage and provide a comprehensive assessment of repair costs.

During this process, you will be required to submit a claim form, a copy of your vehicle's registration certificate, and any other documents requested by the insurer.

4. Damage Assessment by the Insurer

An appointed surveyor or the garage itself will evaluate the vehicle's damage and ascertain the claim's admissibility. Once the assessment is complete, the surveyor will communicate the payout amount from the insurer and your share of expenses, as dictated by the terms and conditions of your insurance policy.

5. Repairs and Delivery

After finalizing the necessary repairs, you can retrieve your vehicle from the garage. While the insurer settles the remaining amount with the garage, you will be required to cover your portion of the repair charges.

If the vehicle is deemed irreparable, the insurer will proceed to sell it in its present condition and reimburse you with the IDV amount specified in your policy. In cases where the vehicle is under loan or lease, the insurer will coordinate payment settlement with the financier.

Also, you can read: Car Insurance Buying Guide

Conclusion

Natural calamities can inflict significant damage on vehicles, leaving car owners grappling with extensive losses. However, by adhering to the proper procedures, promptly informing the insurer, and filing an FIR, affected individuals can expedite the insurance claim process.

With the support of insurance coverage, car owners can gradually rebuild their lives and embark on the road to recovery.

Remember, staying prepared with comprehensive insurance is a vital step in navigating unforeseen challenges and safeguarding your valuable assets in the face of nature's unpredictability.

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