[Become an Insurance Insider] My Car Submerged in Water... Check Your 'Jacha' Coverage First

How to Wisely Handle Compensation for Flood-Damaged Cars

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[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyungil] Following the central region, record-breaking heavy rains have poured in the southern region during this rainy season, causing a sharp increase in vehicle damage due to flooding.

From the 9th of last month, when the rainy season officially began, until the 3rd of this month, the number of vehicle damage claims reported to four major domestic non-life insurance companies exceeded 3,000 cases, with estimated damages surpassing 33 billion KRW.

Experts advise that if your car has been submerged in water, it is best to first check your 'comprehensive car insurance' (jacha).

When purchasing automobile insurance, you can subscribe to the 'Own Vehicle Damage Coverage Special Contract,' commonly known as jacha.

If you have subscribed to jacha, you can receive repair costs and other compensation when the driver causes an accident without another party involved, or when the vehicle is damaged due to fire, explosion, theft, etc.

In the past, vehicle damage caused by natural disasters was not covered by insurance, but since the 2000s, with changes in policy terms, jacha subscribers can also receive compensation for vehicle damage caused by typhoons, floods, tsunamis, and other natural disasters.

After confirming flood damage, if you report the accident to the insurance company and claim the jacha insurance benefits, compensation will be paid within the limit considering the vehicle's value.

However, if the driver’s negligence caused the flooding damage by leaving the sunroof or car doors open, compensation will not be provided. Also, if the vehicle was illegally parked in a flood-prone or no-parking zone, compensation is not possible.

Additional products installed inside the vehicle or personal belongings stored inside are excluded from compensation. If you have automobile insurance but did not subscribe to jacha, you will naturally not receive compensation.

The scope of jacha compensation for flooded vehicles covers the cost to restore the vehicle to its pre-flood condition. If the vehicle damage is less than the insured amount, compensation will be paid within the subscribed limit. The insured value for each vehicle can be checked in the Vehicle Standard Value Table provided by the Korea Insurance Development Institute.

If the vehicle cannot be repaired or the repair cost exceeds the vehicle’s value, the insured value at the time of flood damage can be received as a total loss insurance payout. Also, since vehicle flood damage is considered a natural disaster, if there is no driver negligence, it is excluded from insurance premium surcharges.