Motivated by the need to study traffic flow affected by incidents we consider M/M/C queueing system where servers operate in a Markovian environment. When a traffic incident happens, either all lanes or part of a lane is closed to the traffic. As such, we model these interruptions either as complete service disruptions where none of the servers work or partial failures where all servers work at some reduced service rate. We analyze the system with multiple failure states in steady state and present a scheme to obtain the stationary number of vehicles on a link. The special case of single breakdown case is further analyzed and performance measures in closed form are obtained.