What if your car is carried away in floods

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Recently, heavy rains created havoc in Mumbai.  Hyderabad also faced similar situation and the year before that was the turn of Chennai.  Generally people without parking facility keep their car outside.  If you are wondering how to claim in case your car is lost in floods, here is how.

In flood stream:

Most people buy costly cars with a lot of heart and cities like Mumbai and Hyderabad don’t have enough parking spaces, so many parks are parked outside and locked safe.  Unfortunately, if a car is lost in floods, first thing to do is to file FIR in the nearby police station.

FIR registration…

A comprehensive insurance policy covers cars lost through theft or those not traceable.  It is very important to register a case in police station during such time.

Two keys…

In case your car is lost in floods, you have to submit both the keys of your car to the insurance company.  The rationale behind this is to make sure that the car is not lost due to your negligence.

Insured declared value…

In case a proper case is registered after the car is lost in floods and police couldn’t trace it, insurance companies pay the insurance amount based on the insured declared value.  This value keeps changing every year and gets lower with time and this is called depreciation.  Depreciation is taken into account while calculating insured declared value.

If you want full amount…

If you buy an add-on cover of return to in-voice along with motor insurance, you will get compensation equal to in-voice not considering the insured declared value.  You will have to pay a bit higher premium for this add-on, which is a better buy if you want some additional coverage for your vehicle.