Does Compulsory Traffic Insurance Cover Flooded Vehicles?
2 Answers
Compulsory traffic insurance does not cover water-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 is required for normal road use. Otherwise, according to the "Road Traffic Safety Law," the traffic management department of the public security authorities may impound the vehicle, require the owner to provide the corresponding license, registration, or complete necessary procedures, and may issue a warning or impose a fine ranging from 20 to 200 yuan. Automobile Compulsory Traffic Insurance: 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 injuries, deaths, and property losses of victims (excluding vehicle occupants and the insured) caused by road traffic accidents within the liability limits. The premium is based on a nationally unified standard. However, the price of compulsory traffic insurance varies depending on the vehicle type, primarily influenced by the number of seats. Compared to the over 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 certain indirect losses from accidents. Moreover, regardless of whether the insured vehicle is at fault in an accident, compulsory traffic insurance will provide compensation within the liability limits without deductibles or exemptions. Introduction to Electronic Insurance Policies An electronic insurance policy refers to a digital policy issued by an insurance company using digital signature software compliant with the PKI system and an enterprise digital certificate, 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 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 labels; Time-saving and convenient, not restricted by time or location, with information accessible online anytime, fast and easy; Can apply for reissuance or resending, eliminating worries about loss. If a paper version is needed offline, it can be printed or mailed; Easy management, as electronic standardization makes it easier for insurance companies and traffic police departments to manage vehicle insurance information.
As someone who enjoys studying auto insurance, I must say that compulsory traffic insurance (CTI) primarily covers compensation for third-party personal injury or property damage in traffic accidents—it's not designed for your own vehicle's losses. If your car gets flooded, which counts as natural disaster-induced vehicle damage, CTI won't help at all. To claim compensation, you need to purchase commercial auto insurance's vehicle damage coverage in advance, as it protects against flood-related incidents. Before the rainy season arrives, I recommend checking your policy for vehicle damage coverage. If absent, add it promptly. When parking daily, avoid low-lying or flood-prone areas. Should heavy rainfall submerge your car, never start the engine immediately to prevent further damage—instead, promptly contact your insurer to file a claim. This approach minimizes losses while ensuring safety.
