Does Compulsory Traffic Insurance Cover Flood-Damaged Vehicles?
2 Answers
Compulsory traffic insurance does not cover flood-damaged vehicles because it is designed to compensate third-party vehicles and individuals. Vehicle damage can only be claimed if you have purchased vehicle damage insurance. Compulsory traffic insurance is mandatory by the state, and it is required for normal road use. Otherwise, according to Article 98 of the Road Traffic Safety Law, the traffic management department of the public security organ shall detain the motor vehicle, notify the party to provide the corresponding license, certificate, or mark, or complete the corresponding procedures, and may issue a warning or impose a fine of not less than 20 yuan but not more than 200 yuan. Compulsory Traffic Insurance for Vehicles: The full name of compulsory traffic insurance is "Compulsory Liability Insurance for Motor Vehicle Traffic Accidents." It is a mandatory liability insurance where the insurance company compensates for personal injury, death, and property losses of victims (excluding vehicle occupants and the insured) caused by road traffic accidents within the liability limit. The premium is based on the nationally unified standard rates. However, the price of compulsory traffic insurance varies for different vehicle types, mainly influenced by the number of car seats. Compared to the more than 20 exemption clauses in commercial third-party liability insurance, compulsory traffic insurance covers a much broader range, including losses caused by intentional acts of the victim, the insured's own property losses, related arbitration and litigation costs, and some indirect losses caused by the accident. Moreover, regardless of whether the insured vehicle is at fault in the accident, compulsory traffic insurance will compensate within the liability limit. Introduction to Electronic Insurance Policies An electronic insurance policy refers to a digital policy issued by an insurance company using digital signature software and enterprise digital certificates that comply with the PKI system, bearing the electronic signature of the insurance company. An insurance policy, abbreviated as a policy, is the official written proof of the insurance contract between the insurer and the insured. The policy must fully record the rights, obligations, and responsibilities of both parties to the insurance contract. The content recorded in the policy serves as the basis for both parties to fulfill the contract. The insurance policy is proof of the establishment of the insurance contract. Advantages of Electronic Insurance Policies: Saves paper resources, eliminating the need to print insurance proof marks; Saves time and is convenient, not restricted by time or location, with information universally accessible online anytime, quickly and easily; Allows for reissuance and resending, eliminating worries about losing it. If a paper version is needed offline, it can also be printed or mailed; Easy management, as electronic unification makes it easier for insurance companies and traffic police departments to manage the insurance information of each vehicle.
A couple of days ago, my neighbor's garage was flooded, and the entire car was submerged half a meter deep. The first reaction was to check the compulsory traffic insurance. However, upon asking the insurance company, it turned out that compulsory insurance only covers medical expenses and property damage if you hit someone else, but it doesn’t pay a penny if your own car gets ruined by flooding. You need to purchase commercial vehicle damage insurance for that, and even then, you must add a special water damage rider. Without this additional coverage, you’ll have to pay out of pocket for engine repairs if it gets flooded and you try to start it—costing you tens of thousands in minutes. It’s advisable to check your insurance policy before the rainy season, especially for those parking in low-lying areas—opt for comprehensive coverage. If your car gets flooded, never attempt to restart the engine. Call a tow truck immediately to take it to a repair shop where they can remove the seats and dry the carpets, otherwise, the interior will mold, causing even more trouble.
