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Does Car Insurance Policy Cover Flood Damage?

Published On Aug 13, 2023, Updated On Aug 17, 2023

Does Car Insurance Policy Cover Flood Damage?

India, with its diverse geography and climatic conditions, is prone to natural disasters, including floods. Floods can cause significant damage to life and property, including vehicles. Heavy rainfall in several parts of India has resulted in waterlogging, landslides, road cave-ins, etc., causing severe damage to properties, cars and two-wheelers. As a car owner in India, it's essential to understand whether the car insurance policy covers damage caused due to floods. In this article, we will explore the intricacies of car insurance coverage concerning flood-related damages in India, the different types of car insurance policies and what is more suitable. 

Types of Motor Insurance Policy

There are majorly two types of car insurance policies which provide different types of coverage:

Does Car Insurance Policy Cover Flood Damage?

  • Third-Party Liability 

Third-party car insurance in India is mandatory as per the Motor Vehicles Act 1988. The law requires all car owners to have at least a third-party liability insurance policy. This type of policy covers damages and injuries caused to third parties in the event of an accident for which you are at fault. However, it does not provide coverage for your own vehicle's damages, including flood damage.

  • Comprehensive Car Insurance

This car insurance policy covers and protects a vehicle from various risks, including natural calamities like floods, fire, theft and vandalism. Therefore, it is advisable to opt for a comprehensive car insurance policy. Unlike third-party liability insurance, comprehensive insurance offers coverage for damages to your vehicle in addition to covering third-party liabilities.

Flood Damage Under Comprehensive Car Insurance Policy

Comprehensive car insurance policies in India cover flood damage under its ambit. If any car sustains damage due to flooding, the insurance policyholder can file a claim with their insurance provider to receive compensation for the repairs or replacement of the vehicle, subject to the terms and conditions of the policy.

Key Points to Consider Regarding Flood Damage Coverage

There are certain points that need to be kept in mind before choosing which policy is best for coverage of damages caused to the car due to floods, such as:

  • Review Your Policy: Before assuming that flood damage is covered, reviewing the car insurance policy in detail is essential. Check for specific clauses related to natural calamities, flood coverage, and any exclusions that might apply. 
  • Timely Reporting: In the event of flood damage, it is essential to report the incident to the insurance company promptly. Most insurers have a stipulated time frame within which a claim and the report must be filed. Delayed reporting might result in the rejection of your claim.
  • Required Documentation: When filing a claim for flood damage, the necessary documentation, such as photographs of the flooded vehicle, a detailed description of the damage, a copy of the vehicle's registration certificate, your driving license, and the insurance policy documents, have to be kept ready. 
  • Deductibles: Comprehensive car insurance policies often come with deductibles, which means one needs to pay a certain amount out of pocket before the insurance coverage kicks in. Therefore, the deductible amount specified in the policy needs to be reviewed to avoid surprises when filing a claim.
  • No-Claim Bonus (NCB): It is a situation when an insurance holder has not made any claims during the policy term, making him eligible for a no-claim bonus. It results in a discount on the policy's premium during renewal. However, a claim for flood damage may affect the NCB.

Exclusions and Limitations

While comprehensive car insurance does cover flood damage, certain exclusions and limitations might apply. Common exclusions include:

  • Driving in Restricted Areas: If the vehicle gets damaged due to floods while driving in areas marked as restricted or prohibited during floods, the claim might be denied.
  • Driving Without a License: If the driver at the time of the incident does not hold a valid driving license, the claim could be rejected.
  • Consequential Damages: Some policies might exclude coverage for consequential damages, such as engine damage resulting from attempting to drive through deep floodwaters.
  • Policy Lapse: If the car insurance policy has lapsed due to non-renewal or non-payment of premiums at the time of the flood damage, the claim will likely be rejected.


In India, comprehensive car insurance is the ideal way to protect your vehicle from various risks, including flood damage. While third-party liability insurance is mandatory, it does not provide coverage for your vehicle's damages caused due to floods. Therefore, it is highly recommended to invest in a comprehensive policy to ensure financial protection against potential losses caused by floods or other calamities.


  • Does my car insurance policy in India cover flood damage?

Yes, if you have a comprehensive car insurance policy, it should cover flood damage to your vehicle.

  • What should I do if my car gets damaged in a flood?

If your car sustains flood damage, immediately inform your insurance provider and file a claim. Take photographs of the damage and gather all necessary documents to support your claim.

  • Can I drive through flooded areas and still be covered for flood damage?

Most policies have specific restrictions against driving in areas marked as restricted or prohibited during floods. Driving in such areas may lead to claim denial.

  • What if I don't have comprehensive insurance and my car gets flooded?

If you don't have comprehensive insurance, your policy will not cover flood damage, and you will have to bear the repair costs yourself.

  • Is flood damage covered under third-party liability insurance?

No, flood damage is not covered under third-party liability insurance. It only covers damages and injuries caused to third parties in an accident for which you are at fault.

  • What are some companies that provide car insurance policies that cover damage to the car caused due to floods?

Some companies that provide such policies are New India Assurance, National Insurance, Bajaj Allianz, ICICI Lombard etc.


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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