Your car is parked outside. A dust storm rolls in, bringing strong winds and heavy rain. Within minutes, a tree crashes onto your vehicle, shattering the windshield, caving in the roof, and damaging the dashboard. Will your motor insurance cover the loss?
Yes, but only if you have an Own Damage (OD) cover. Every vehicle must have third-party insurance, but it only covers damage caused to others. Damage to your own vehicle is covered only if you have an OD policy. Many buyers skip OD cover because it raises the upfront insurance cost. But it is your primary financial protection against natural calamities.
"It covers exterior and structural damage such as dents and smashed bodywork caused by uprooted trees and falling poles. It also covers interior and electrical damage, including water ingress into the cabin and damage to electronic components caused by waterlogging," said Narayan Rao, head-Motor Claims, Digit General Insurance.
However, buying an OD cover does not necessarily mean the insurer will pay the entire repair bill. Mumbai resident Anil Kumar found this out after a tree uprooted by strong winds fell on his parked two-wheeler inside his housing society, damaging the speedometer and the entire front assembly.
The networked service centre initiated the insurance claim on his behalf. "A surveyor inspected the vehicle and later shared the repair estimate. I approved it, assuming the insurer would settle the claim," Kumar said. Only after the repairs were completed did he discover that he had to bear nearly 40% of the cost himself.
- OD cover is optional, but essential against storm and flood damage.
- The zero-depreciation add-on prevents insurers from deducting the value of replaced vehicle parts.
- A low Insured Declared Value reduces your premium but also caps your maximum claim payout.
- Battery damage from flooding is covered, but insurers rarely explain this upfront.
- Claim timelines aren't fixed; check policy wording, report damage immediately, always.
"Nobody told me about the deduction beforehand. Had I known, I might have skipped the insurance claim altogether and got it repaired at a local garage," he said.
Why the deduction? Because Kumar did not have a zero depreciation add-on. Under a standard OD policy, insurers deduct depreciation from the value of replaced parts before settling repair claims. A zero-depreciation (also called zero-dep or bumper-to-bumper) add-on eliminates these deductions on eligible parts, substantially reducing the amount the policyholder pays.
The coverage and add-ons that matter
Experts say buyers often chase the lowest premium without paying attention to the protection they are giving up. Focus on the Insured Declared Value (IDV) first in your OD cover. It represents the current market value of your vehicle. Opting for a lower IDV reduces the premium but also the maximum amount the insurer will pay if the vehicle is stolen or declared a total loss. If the damage is so severe that the repair costs exceed around 75% of the IDV, insurers generally treat the vehicle as a constructive total loss. It means they might ask you to take the IDV value and take possession of the damaged vehicle.
"A Return to Invoice add-on protects you in this situation. Instead of paying only the depreciated IDV, it ensures you receive the vehicle's original invoice value in case of a total loss," said Rao of Digit Insurance.
Another useful add-on is Engine and Gearbox Protect. Suppose you drive through a waterlogged road and water enters the engine or gearbox, damaging it. Such damage is often treated as consequential loss under a standard OD policy. "Having this cover protects you against expensive water ingress repairs," Rao said.
He also recommends Consumables Cover, which covers items such as engine oil, coolants, and lubricants used during repairs, and Roadside Assistance, which provides towing and emergency support during monsoon breakdowns. EV owners, he said, should consider specialised covers that protect against flood-related battery damage.
Remember, insurers impose age limits of say 5-7 years on add-ons such as zero depreciation, return to invoice, and consumables cover.
Mistakes you must avoid
Suppose your car is parked in a flooded basement and rainwater damages the battery. Many owners assume it is normal wear and tear or a mechanical or electrical breakdown—both of which are excluded from the policy. But it will be treated as flood-related damage and therefore covered under the OD policy.
"When a car is parked in waterlogged conditions during heavy rain and a component like the battery stops functioning afterwards, it is a straightforward covered event as long as the vehicle wasn't operated in a way that caused secondary damage like attempting to start the engine while submerged, which triggers separate exclusions. The challenge is that insurers don't proactively tell customers this, and many customers assume the opposite," said Saurabh Vijayvergia, founder & CEO, CoverSure.
The secondary or consequential damage may also be covered if you buy the engine protector add-on. “We suggest that you never restart a vehicle submerged in water. Call roadside assistance instead. For unavoidable circumstances, Engine Protection Cover is one of the most valuable add-ons for vehicle owners, especially in cities that experience heavy monsoon rains or frequent waterlogging. It helps cover the cost of repairing or replacing engine and gearbox components damaged due to water ingress or leakage of lubricating oil, subject to the policy terms and conditions," Paras Pasricha, head of Motor Insurance at Policybazaar.com, warned.
Vehicle owners should also disclose any modifications, such as CNG/LPG kits, alloy wheels or electrical accessories, to the insurer. "Failure to disclose material modifications can amount to misrepresentation. It can become grounds for dispute and may affect claim settlement, depending on the policy terms, the nature of the modification, and the facts of the claim," Pasricha said.
What to do immediately after damage
If your vehicle is damaged, take photographs and videos before moving it, wherever possible, and inform the insurer immediately.
"Avoid starting repairs before the survey. Unauthorized repairs may affect claim settlement," said Pasricha.
If you choose a local garage instead of a network workshop for a reimbursement claim, ensure it is a reputed GST-registered garage. "Reimbursement claims are settled, but they are scrutinised more closely in case of a non-network garage," Policybazaar.com‘s Pasricha said.
Know the exclusions and claim timelines
Policyholders should also be aware of what motor insurance does not cover. "Common reasons for claim rejection include driving without a valid licence, driving under the influence of alcohol, racing, mechanical or electrical breakdown due to wear and tear, and depreciation if the Zero Dep add-on has not been purchased," said Udayan Joshi, chief operating officer, SBI General Insurance.
There is no universal regulatory deadline for reporting a motor claim. Instead, the timeline depends on your policy wording.
"Most insurers expect intimation within 24 to 48 hours, some allow up to seven days, while others simply say 'immediately'. Most customers have never checked what their own policy requires," CoverSure’s Vijayvergia said.
Once the claim is reported, regulations require insurers to acknowledge it within 3 days, appoint a surveyor within 72 hours, and settle the claim within 30 days of receiving all documents.
Delaying the claim by several weeks or months does not automatically lead to rejection, but it makes it much harder to prove the loss.
"By then, the vehicle may already have been repaired and the physical evidence lost. The burden shifts back to the policyholder to establish what actually happened," Vijayvergia said.
Extreme weather events are becoming more frequent, turning parked vehicles into easy targets for falling trees, flooded basements, and flying debris. While an OD policy protects against these risks, the actual claim depends on the choices made while buying the policy. Avoid going with the cheapest policies. Understand the coverage, additions and exclusions.