Water Damage Insurance Claim Process: Step-By-Step Guide For Car Owners

Water damage can be devastating for your vehicle. The entire country witnessed this phenomenon during the 2018 floods in India. Water ingress in car engines can prove to be fatal to its functioning and several electronic parts of the car are also affected. If you live in a region prone to floods or receive heavy rainfall, it helps to have car insurance. Although it is compulsory for Indian citizens to hold car insurance to be able to drive in India, very few are aware of the steps to be taken to claim the water damage insurance . In this article, we discuss the steps one must undertake in order to successfully claim water damage insurance without hassles.

Common Causes of Water Damage in Cars

Here are some common causes of water damage in cars:

Floods and Heavy Rainfall 

Heavy rainfall and floods are natural things and cannot be controlled by human efforts, but they have a significant side effect on vehicles.

Vehicles that go through floods have issues such as the presence of water stains and discoloration on various parts of the car, moldy odor, and Another common problem is electrical malfunctions, such as lights that don't work correctly or the failure of essential systems like the power windows or the radio.

Driving Through Waterlogged Areas

In the monsoon season, the problem of waterlogging is widespread, and driving in these waterlogged areas can cause various issues, including engine failure, accidents, oil leakage, and so on.

Leaking Car Components

Water leakage in the car can cause severe damage to the interior of the car; even minor untreated leakage can cause multiple damages and unsightly stains on a vehicle’s interior as well as a constant musty odor.

Types of Damage Caused by Water

Apart from exterior and interior damage to the car, body water can damage the components of the car.

Engine Damage

Flood events can submerge your engine in water, and that water will enter the engine and fill it full of water. Water can cause corrosion to form inside the engine, which can lead to engine failure in the future.

Electrical System Issues

Water can cause short circuits in the battery if it is submerged in water. It can also cause shorts in every fuse box in the car.

Interior And Upholstery Damage

Water leakage or submerged cars can lead to damage to its interior.

Corrosion And Rust

Rust is one of the significant problems long after a flood event is over. Many of the surfaces on your car and its components are not well protected from corrosion. 

Car Insurance Coverage for Water Damage in India

There are two types of insurance one is comprehensive and another is third-party, insurance coverage for water damage depends upon the type of insurance you have taken.

Comprehensive vs.Third-Party Insurance

Comprehensive insurance means the same as its name suggests, i.e., including or dealing with all or nearly all elements or aspects of something. In comprehensive insurance, the policy covers the risk related to own vehicle damage as well as third-party vehicle damage. 

In third-party insurance, the policy covers the injuries or damage of the third party that occurred due to the insured car. This insurance provides coverage only for third-party damage and not for self-damage. As per the Motor Vehicles Act of 1988, every motor vehicle owner must buy at least third-party insurance coverage in India.

What Is Covered Under Comprehensive Insurance?

A comprehensive car insurance policy provides coverage for the following damages:

• Artificial acts like vandalism, strikes or riots

• Theft, Burglary, or Housebreaking

• Damages caused by a bird or an animal or rat bite causing electrical damage

• Accidental damages when the insured car was in transit via roadways, railways, airways, etc

• Fire, self-ignition, or explosion of the insured vehicle

• Damages caused by natural disasters like floods, hailstorms, tornadoes, hurricanes, earthquakes, etc.

• Third-party liabilities (death, injury, and property damage)

Limitations of Third-Party Insurance

One of the significant limitations of third-party insurance is that it covers the loss of a third party only and will not give any benefit to the policyholder.

Importance of Add-On Covers

Apart from basic coverage, which covers damage to the car's exterior body, there are some add-on covers offered by the insurance company, which gives additional benefits.

Engine Protection Cover

This add-on covers any damage caused by lubricating oil leaks, water entering the engine, and other factors that might harm the engine.

Consumables Cover

Consumable cover in car insurance covers all types of oils and lubricants. Such kinds of oils, once used, are burnt away. The add-on for consumables in motor insurance covers expenses for brake oil, AC gas, and engine oil in case of an accident.

Zero Depreciation Cover

This add-on cover is also known as 'bumper to bumper' or 'nil depreciation cover. Your car is subject to depreciation, which means that over the years, your car's value keeps decreasing. With this add-on cover, in case of a claim on your vehicle, you will receive the full value of your car and all of its spare parts; the insurer will cover depreciation.

Roadside Assistance Cover

If your car happens to break down in the middle of nowhere, your insurer will come to your rescue! With this add-on, emergency assistance services are available to you. These include flat tyres, minor repairs, emergency fuel delivery, battery jumpstart, towing service, accommodation benefits, and tax benefits. 

Steps To File A Water Damage Insurance Claim

To get the insurance benefit, it is essential to follow the correct steps on a timely basis.

Immediate Actions Post-Exposure

There are some action that needs to be taken post-water damage, such as:

• Avoid Starting The Vehicle

It is advisable not to start the vehicle immediately after it has been in flood, as floodwater could have entered into the engine or other parts and may cause further damage to the vehicle.

• Disconnect The Battery If Possible

Before proceeding with anything else, disconnect the car's battery to avoid any kind of electrical issue.

• Document The Damage With Photos And Videos

Please take pictures and videos of damages and keep them as evidence to process insurance claims.

Notifying Your Insurance Provider

It is essential to notify the insurance provider as soon as possible once the damage is identified.

• How To Contact Your Insurer

Contact your respective insurance agent either through call ma,il, or mobile app and notify them about the damage.

• Information To Provide During The Initial Report

Provide related information such as details of the event, damage to the vehicle, current position, etc.

Documentation And Evidence Collection

To proceed with the insurance claim, some documents are required, which are as follows:

• Necessary Documents (e.g. Policy Details, Registration Certificate)

It includes a copy of the policy covering all the details of the claim, vehicle registration number, etc.

• Importance Of Visual Evidence

Evidence collected at the time of the event plays a crucial role in speeding up the claim.

Inspection and Damage Assessment

The insurance agency does a proper inspection before processing the claim, and here, the insurance surveyor plays an important role.

Role of The Insurance Surveyor

Insurance surveyors assess the event and identify the cause of the event, whether it is organic or some fraud, just to claim the insurance.

What To Expect During The Inspection

• During the inspection, the insurance surveyor will assess the damage and determine the compensation.

• During the inspection, the adjuster evaluates the damage, including repair costs, the vehicle’s pre-accident condition, and market value, to decide if the car is repairable or a total loss.

• They may also identify any pre-existing damage not covered under the claim.

Claim Approval and Repair Process

To claim insurance, it is required to know how to get it by following these steps:

• Understanding the Approval Timeline

Before claiming insurance, it is essential to read the policy and be aware of the timeline for claiming insurance after damage.

• Choosing an Authorized Repair Center

For repairing damaged vehicles, choose an authorized repair center instead of a vendor so that you can get the claim without any hurdles.

• Repair Process and Quality Assurance

After repair, ensure that the repair done by the repair center is adequate and of high quality.

Settlement of Claims

Settlement of claim can be of two types: one is cashless, and the other is reimbursement of claim.

• Cashless vs. Reimbursement Claims

In a cashless settlement, the insurance company will directly credit the insurance claim amount to the repair center.

In the reimbursement claim, repair costs will initially be paid by the car owner. After submission of the invoice and required documents, the insurance company will reimburse the amount to the car owner's account.

• Factors Affecting The Settlement Amount

Many things can really affect how your car accident claim gets sorted.

Prompt and Accurate Documentation

Having the proper documents is super important when you're filing a car accident insurance claim. Getting all the info about the accident down on paper and doing it on time is a big deal.

Policy Coverage and Limits

Before filing for insurance, it is important to know the coverage and limit of insurance.

Documentation of Damages

Documentation of damages to the vehicle and any injuries sustained is essential for a fair claim settlement.

Negotiation Skills

Effective negotiation skills play a vital role in securing a fair car accident insurance claim settlement.

Tips To Strengthen Your Water Damage Claim

To claim the water damage effectively, a few things need to be considered:

Ensuring Accurate and Detailed Reporting

Ensuring accurate and detailed reporting includes:

Providing Comprehensive Descriptions of Damage

Provide the accurate detail of damage, its value, and a clear picture of pre damage situation. also, provide the detail of how the event happened, precautions taken by you to minimize the damage etc.

Being Honest And Transparent With Your Insurer

It is essential to be honest and transparent while providing information to the insurer, and there should not be any kind of miscommunication on your part; it will build the trust of the insurer and will also help to get the claim faster.

Following Up With The Insurance Company

Once the insurer does the inspection the insurer does the inspection it is required to be in touch with the insurer to get the real-time update:

Regularly Checking The Status of Your Claim

Take regular follow-ups from the insurer to know the exact status of your claim process.

Maintaining Records of All Communications

Maintain records of all the communication done with the insurer so that there will be no confusion about when and how many claims you are going to get.

Understanding Policy Terms And Conditions

Before purchasing a policy, it is essential to know the terms and conditions it pertains to avoid any confusion while claiming it.

Being Aware Of Exclusions And Limitations

Be aware of the exclusions and limitations as the policy does not always cover all the damage like drunk and drive damage, driving without license damage, etc, or any damage that doesn't count as an outcome of the accident.

Knowing Your Rights As A Policyholder

1. Access to Policy Documents

You have the right to access policy-related documents within 60 days of submitting your proposal to the insurance company.

2. Clarity of Policy Documents

Policy documents can contain technical terms and conditions, and most policyholders often don't go through the document in detail. It also makes it hard to understand the real meaning at times. In such cases, you have the right to demand clarity regarding the policy document wording.

3. Free Look Period

A vital right of policyholders, the free look period offers a 15-day window to study your policy in detail and get an understanding of the services you will receive.

4. Policy Modification

Over time, your requirements for insurance policies may change. You can modify certain features of your existing policy, such as the policy term, the sum assured and the inclusions.

5. Making a Claim

Claiming your policy is your fundamental right. The insurance company must obtain your details, complete the paperwork, etc., within 15 days from the date of filing the claim.

6. Seeking Grievance Redressal

In case you are unhappy with the claim settlement process, or if you feel your claim has been rejected on unfair grounds, you can seek recourse by registering your complaints at the Insurance Regulatory Development Authority of India (IRDAI) Grievance Redressal Cell.

Preventive Measures To Avoid Water Damage

Even if you have insurance, you must take preventive measures to avoid water damage. Some of these are as follows:

Safe Driving Practices During Monsoons

Avoiding Waterlogged Areas 

During monsoon season, avoid taking the routes in the waterlogged areas and opt for alternative routes.

Driving At Appropriate Speeds

Driving at an appropriate speed is essential as in monsoon, roads are a bit slippery and can cause accidents.

Regular Vehicle Maintenance

Checking For Leaks And Sealing Gaps

Regular checks on leaks and sealing gaps is essential to be aware of any leakage or insertion of insects within time and to take appropriate action accordingly.

Ensuring Proper Functioning of Drainage Systems

Kindly ensure that the drainage system is functioning correctly or not as water storage inside the vehicle may damage its parts.

Parking Strategies in Flood-Prone Areas

In flood-prone areas, parking should be done considering the water damage, which can be avoided by proper parking.

Choosing Elevated Parking Spots

If you reside in a flood-prone area, aim to park on a higher level. If you only have access to flat parking, select a spot that's at a higher elevation compared to the rest of the area.

Using Protective Covers

A water-resistant car cover can provide an additional layer of protection against water. Not only will it shield your vehicle from dust and debris, but it also can help keep it dry during a flood. 

Conclusion

Water damage can have serious consequences if left unattended. In order to avoid spending a substantial amount from your pocket for repairs due to water damage, it is recommended that you buy the necessary insurance add-ons.