The car dealer claimed that the engine stalled since the car was taken on a flooded road. The dealer said the damage was caused due to ingestion of water through the intake system, which is not covered under warranty.
After studying the case, the Forum observed that the insurance company was liable to indemnify the client against loss or damage caused due to “flood, typhoon, hurricane, storm, inundation” and other factors. Hence, the Forum upheld the claim made by the complainant. It directed the insurance company to pay Rs 1.76 lakh to the complainant along with interest at the rate of 18 per cent per annum from the date of filing the complaint, and Rs 7,000 as cost of litigation. (See: http://www.financialexpress.com/news/waterlogging-damages-cars-residents-win-claim/909285/0)