It is certainly time well spent; considering the anxious moments you may have to experience, if you’re unaware of the terms and conditions of your motor insurance plan.
Depending on the type, motor insurance plans cover you from a variety of risks. However, learning about what is not included is just as important. They can go a long way in ensuring a bump free experience with your motor insurance policy. To get started, uncovered risks in your motor insurance policy are also referred to as exclusions.
Third party insuranceAs the name suggests, third party insurance protects you from legal liabilities arising out of death, injury or damages suffered by the other party. To drive on Indian roads, you would compulsorily need third-party insurance coverage.
While it may help you make good any damage suffered by a third-party, your own damages are not covered.
Comprehensive motor insuranceWhile comprehensive motor insurance provides own damage as well as third party coverage, there are a number of exclusions that you need to be aware of.
Stated below are some of them:
- If your vehicle becomes involved in an accident during the intervening period between the expiry and renewal of your motor insurance policy, any expense relating to repairs would have to be borne by you. This a good reason to always carry an active motor insurance policy.
- There is an insurance dimension to the ubiquitous sign at traffic signals that warns ‘Do not drink and drive’. Your insurer reserves the right to refuse your insurance claim in case you do so.
- If your minor child was at the wheel of your car, coverage under your insurance policy will be denied.
- If the vehicle manufacturer's safety guidelines are violated, your insurer may not honour your claim
- If your car sustains damages due to public protests, firefights, military strikes including the use of nuclear weapons, your insurance provider will not be liable.
- Sabotage: If your car was deliberately tampered with, insurance coverage may be denied.
- Consequential damage: If you accidentally start your vehicle in a waterlogged area, your motor insurance policy may not provide coverage. This is because, the damage might not have been the direct result of flooding - but a consequence of the car being started, when you shouldn’t have.
- If the insured vehicle is leased or let out to another person and sustains damage during this time, it may not be covered under the terms of your motor insurance policy.
Knowing the exclusions of your motor insurance policy helps you know when to raise a claim and keep away from situations where a claim might be rejected.
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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.
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