Owners of flood-damaged cars could be compensated by full coverage car insurance: sector veteran

Car owners whose vehicles were damaged due to the disastrous rainstorm will be compensated if they carry comprehensive insurance coverage, said a veteran of the insurance sector.

Hong Kong was hit by the once-in-a-century torrential rain last week, with many cars stalled in high water while some were submerged in parking areas by floodwater.

The chairman of the International Insurance Consulting Association, Paul Law Siu-hung, said in a radio interview on Monday that car owners could get compensation if they applied for full coverage car insurance and prove that they have tried hard to avoid or mitigate the loss.

He added that the reimbursement will be determined by the actual cost of the maintenance works, and owners may required to pay a specific proportion of deductibles.

As for the owners with only third-party insurance, which applies to incidents involving personal injury or death, the claims for the flood-damaged vehicles will not be applicable.

“I expected the total amount of claims resulting from the torrential rain will be greater than the HK$3 billion in claims from Super Typhoon Mangkhut five years ago,” Law said, adding that the public should expect premiums to rise next year.

He said that if the occurrence was caused by the negligence of the parking lot or management company that failed to implement rainwater discharge measures to prevent flooding, the car owners could file a civil claim to seek compensation from the relevant person or company.