A few days back some of the key roads and streets of Bengaluru resembled a shallow lake, courtesy unseasonal rapid rains. Cars sat stranded on roads that had vanished under muddy flood water, their engines drowned, some partially submerged, others tilted helplessly into open drains. If you were among the unlucky ones whose car had to be towed out, or worse, written off entirely, the first thought that likely crossed your mind was: Will insurance cover this?
This would be a fair question, and the answer is not a simple yes or no.
Not All Damage Is Covered
One of the lesser-known realities of motor insurance in India is that a standard comprehensive coverage will not automatically mean “everything is covered.” For instance, if you tried to start your car while it was stuck in floodwater, and the engine got damaged in the process, your claim may well be rejected.
This is because of something insurers call “contributory negligence.” Simply put, if your own action (like starting a submerged car) is seen as having worsened the damage, the insurer might not honour the claim.
“Attempting to start a car in such a condition can directly led to severe engine damage. Since this action is avoidable, it often becomes a basis for rejecting claims,” explains Mayur Kacholiya, Head of Motor Product at Go Digit General Insurance.
This means that even though the flood would have caused the initial issue, trying to drive or crank the engine while it’s waterlogged shifts part of the blame onto the car owner.
Why the Fine Print Matters
A standard policy would probably include natural disasters under the ‘Own Damage’ (OD) component; however, this may not go far enough in an urban flood situation. The critical parts like the engine and gearbox are particularly vulnerable to water damage, but these are often excluded from basic policies unless you have particularly purchased a plan that has these specific add-ons.
A key add on is often the Engine and Gearbox Protect Cover. “This becomes crucial, especially during monsoons,” Kacholiya adds. “It covers water-induced engine damage, which would otherwise require expensive repairs that aren’t usually covered.”
Paras Pasricha, Business Head of Motor Insurance at Policybazaar.com, an online insurance marketplace, echoes this: “Floods can cause significant damage to the engine and gearbox, especially if water seeps into these critical parts. So, the Engine Protection add-on is important especially for areas in flood prone regions.”
What About Getting Help When You're Stuck?
Another big issue in cities like Bengaluru, Delhi, or Mumbai where waterlogging can happen with little warning, is getting your car to safety. For that, insurers offer Roadside Assistance (RSA) as an add-on. If you have it, your insurer will arrange and pay for towing services when your vehicle is stuck.
What if you don’t have this cover? Says Pasricha, “If the customer does not have RSA coverage, they can connect with the insurance provider and get their car towed, though it will be at their own expense.”
That might not sound like a huge deal until you realise that towing a vehicle from flooded areas, especially if multiple cars are affected at once, can become an expensive and time-consuming process.
Add-Ons That Make A Real Difference
If you are reviewing your motor insurance policy today (and you probably should), there are some key covers that are increasingly essential in urban flood-prone zones. According to Kacholiya these are:
Engine and Gearbox Protect Cover: Covers internal damage from water ingress.
Return to Invoice Cover: This will provide you coverage in case there is a total loss. It will ensure you are reimbursed the original invoice value (including registration and road tax) but note - not the depreciated value.
RSA: As discussed above, this cover will provide you assistance when the vehicle is stuck with services like towing, jump-starting, or minor repairs if you are stranded.
Zero Depreciation cover: This is one of the most popular add-ons that provides vehicle owners full claim payout for parts replaced without factoring in depreciation.
Consumables Cover: This add on provides coverage by paying for engine oils, lubricants, nuts, bolts, typically excluded in basic policies.
EV Shield: This one is for electric vehicle owners, and it is an important one. EV vehicles would be more at risk in urban flooding situations as flood-related battery or electrical damage can tend to be complex and costly.
Says Kacholiya, “By combining these add-ons with your comprehensive policy, you can significantly enhance your vehicle's protection against urban floods and mitigate potential financial losses.”
The Bottom Line
When it comes to situations like urban flooding, vehicle owners should not ‘hope’ their insurance covers it, they should know if it does.
With climate change intensifying and urban infrastructure often lagging behind, floods are no longer rare surprises. Bengaluru is just one of many Indian cities facing the consequences of poor drainage, erratic weather, and expanding concrete.
