Flood strikes North India: Why is a comprehensive motor insurance crucial during such natural disasters?

Motor insurance provides financial protection against flood-related perils such as waterlogging, engine damage, electrical system failures, and other losses resulting from immersion in water.

Kirti Jha, MintGenie Team
First Published15 Jul 2023, 11:20 AM IST
Motor insurance plays a critical role in safeguarding vehicles and their owners during natural disasters
Motor insurance plays a critical role in safeguarding vehicles and their owners during natural disasters(REUTERS)

The recent heavy rainfall and subsequent flooding in parts of North India, including Delhi, Himachal Pradesh, and Uttarakhand, have created an unpredictable and unfortunate situation for the affected regions.

In Delhi, the rising water level of the Yamuna River has surpassed the danger mark, leading to extensive flooding in the streets and localities of the national capital. The floods have caused significant damage to infrastructure, properties, and have disrupted the lives of residents.

In such cases, motor insurance plays a critical role in safeguarding vehicles and their owners during natural disasters. In India, where floods are a recurring phenomenon, having comprehensive motor insurance coverage becomes even more crucial.

In this article, we explore the importance of motor insurance during floods.

Protection against flood-related damages

Floods can wreak havoc on vehicles, leading to significant damages. Motor insurance provides financial protection against flood-related perils such as waterlogging, engine damage, electrical system failures, and other losses resulting from immersion in water.

Comprehensive motor insurance policies typically cover such damages, allowing vehicle owners to seek financial compensation for repairs or replacements.

Coverage for third-party liabilities

Motor insurance not only protects vehicle owners but also covers third-party liabilities. During floods, vehicles can cause accidents or damage to third-party properties, leading to legal and financial implications.

READ MORE: Why are motor insurance premiums for electric vehicles generally higher? An explainer

Motor insurance with third-party liability coverage ensures that vehicle owners are protected against legal liabilities arising from accidents or damages caused to others during flood situations.

Assistance for vehicle recovery and towing

In the event of a flood, vehicles may become immobile or stuck due to waterlogged roads. Motor insurance often includes provisions for vehicle recovery and towing services, providing much-needed assistance to policyholders during such situations.

This service helps retrieve and transport the vehicle to a safe location or a garage for repairs, minimizing the inconvenience and potential damage caused by leaving the vehicle unattended.

Protection against theft and vandalism

Floods can create chaotic situations, leading to increased risks of theft and vandalism. Motor insurance policies often offer coverage against theft, burglary, and acts of vandalism.

This ensures that vehicle owners are protected not only from flood-related damages but also from potential criminal activities that may arise during or after floods.

Financial security for policyholders

One of the key advantages of having motor insurance during floods is the financial security it provides to vehicle owners. Repairing or replacing flood-damaged vehicles can be an expensive affair, often resulting in significant financial strain.

With motor insurance, policyholders can have peace of mind knowing that they have financial protection to cover the costs associated with flood damages. This helps alleviate the financial burden and ensures that individuals can restore their vehicles without depleting their savings or facing financial hardships.

Given the frequency and severity of floods in the country, it is crucial for vehicle owners to have comprehensive motor insurance coverage. It is advisable to review existing policies, understand the coverage terms, and choose the most suitable motor insurance plan to meet individual needs and geographical risks associated with floods in India.

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Things to keep in mind at the time of buying a motor insurance policy.
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First Published:15 Jul 2023, 11:20 AM IST
HomeMoneyPersonal FinanceFlood strikes North India: Why is a comprehensive motor insurance crucial during such natural disasters?

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