Exclusions in Motor Fleet Insurance Policy

Motor fleet insurance should be considered by business owners or those who own three or more vehicles. This insurance entails the purchase of multiple policies from one provider. Bulk purchase benefits the owner in terms of discount offered by the insurance provider on premium and saves time in managing multiple diverse policies for each vehicle and driver.

Though a motor fleet insurance policy is quite successful in safeguarding owners of large or small commercial/personal fleet against considerable damages, certain costs and losses are not covered under this policy. Following are the most common exclusions:

• Driven by anyone other than the driver listed under the driver’s clause of the policy.
• Driven by anyone who has consumed alcohol, drugs or any other intoxicating substance.
• Driven by someone who does not possess a valid driving license, has never had a driving license or is legally prohibited from driving and holding a driving license.
• Operated by the company for any other purpose than the ones mentioned in the policy documents.

• Act of war or invasion or any other form of hostility or unrest, including a riot.
• Act of nature, like earthquakes.
• Transportation of any hazardous materials.
• Use of vehicles against the usage guidelines formulated by the vehicle manufacturer.

1. A motor fleet insurance policy does not cover any damages caused to the engine because of oil leakage.
2. It is not liable to cover any losses associated with general wear and tear of vehicles.
3. The policy does not cover any claim in case the insured vehicle fleet is being:
4. No claims are entertained in case the vehicle has been given on hire to earn money or has been used as a mortgaged property to secure a loan.
5. The motor fleet insurance policy excludes any loss or damage that has directly or indirectly resulted from:
6. If a claim is rejected and subsequently not taken to court within a year, then the insurance company is not liable to cover that claim.
7. In case the owner fails to renew the policy on time, no damages or losses can be claimed.
8. In case the policy has expired, the owner cannot claim any damages or losses of any nature (irrespective of whether they are included or excluded under the insurance coverage).
9. Insurance providers do not pay for any damages occurring beyond the geographical area mentioned in the policy documents.
10. Damages occurred while transportation of the vehicle through the air or sea routes are also excluded from the policy.
11. Replacement or damage costs for mechanical or electrical components are not covered under the policy.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.