Summary of this article
Consumer forum orders EV motor claim payout for flood damage
Battery replacement cost over Rs 7 lakh awarded with interest
Insurer’s denial rejected; flooding treated as insured peril
Reinforces clarity gaps in EV insurance & survey practices
A district consumer forum in Telangana has pulled up United India Insurance for refusing to settle a motor claim involving a Tata Nexon EV owned by a Hyderabad-based firm. The forum ordered the insurer to reimburse the cost of a new battery pack, over Rs 7 lakh, and to add compensation and interest on top. The order, according to a recent report by Newsmeter, turns on a fairly straightforward point: the insurer should not have denied the claim because the damage was caused by flooding, a standard insured peril.
CBS Agencies, the complainant, had taken a Standalone Own Damage policy for the electric SUV, with a sum insured in the vicinity of Rs 13.8 lakh. Barely a few weeks into coverage, the city saw heavy rain. Water pooled inside the residential compound where the vehicle had been parked overnight. When the water level finally dropped, and the car was moved to an authorised workshop, the technicians did not mince words; the battery had taken in water and would have to be replaced wholesale. The number that followed was eye-watering: more than Rs 7 lakh, plus a small amount for an ABS component.
How The Dispute Reached The Commission
United India Insurance said no. Its surveyor took the position that the loss was not accidental and therefore not payable. The complainant insisted on the opposite. Flood damage, they argued, is a textbook case for coverage. When approaches to the regulator’s grievance cell did not resolve the issue, the matter shifted to the Ranga Reddy District Consumer Disputes Redressal Commission. The complainant asked for various heads of relief, including repair expenses, hired vehicle charges, parking fees, business loss, and mental distress. Some of that was aspirational, and the Commission treated it as such.
1 January 2026
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The Forum’s Reasoning And Award
The Commission examined the policy and found no exclusion for rainwater or flooding. It also noted gaps in the survey assessment. The forum was not persuaded by the insurer’s attempt to classify the incident as non-accidental. While it trimmed down a few of the complainant’s claims for lack of paperwork, the forum held that the battery replacement fell squarely within policy coverage and should have been honoured.
In the final order, the insurer has been directed to pay Rs 7,07,589 towards the battery, Rs 20,000 for service charges, and Rs 50,000 for mental agony. Interest at nine per cent per annum will run from the filing date until payment. A 45-day window has been provided for compliance.
A Sign Of Things To Come For EV Insurance
Electric vehicles solve one problem and create another. The battery pack is the heart of the machine, and when it fails, particularly due to flooding, there is very little room for half-measures. Replacement costs can rival a new hatchback. For insurers, this raises questions about how policies are worded and how surveyors evaluate damage that does not resemble the traditional ‘collision’ model. For consumers, it underscores the importance of documentation and clarity.
