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Ready to opt for a third-party insurance plan only? Here’s the deal.
|What’s Covered||What’s Not Covered|
You accidentally run your car over someone and injure that person. In this case, your insurer is accountable for paying compensation to that person.
|Injury to Yourself
If you wreck into someone, that person can claim on your third-party insurance. But you receive nothing. Absolutely no compensation for your injuries.
|Property Damage Liability
What if you ram your car into someone’s car or property? Here your car insurance company is liable to pay that person for those damages. This is capped at Rs. 7.5 lakh.
|Damages to Your Car
Your car could get damaged while parking. It could also get stolen by the sly thief in the neighborhood. Sadly, no damage or loss to your car is covered under third-party insurance.
Want that near-perfect coverage? Here’s what you’re looking for and what you will get.
Apart from third party liability, you can also claim for damages that occur to your car during an accident.
If you are badly injured due to an accident then your insurer can compensate you, reducing your financial burden.
Nature is unpredictable with floods, earthquakes, landslides, etc. A comprehensive car insurance can financially protect your car in such times.
If your car is stolen, you can file a claim for it. Your insurer will pay an amount equal to the insured declared value mentioned in the car policy.
Apart from theft, your insurance company can cover you from several other man-made disasters. These include riots, terrorism, strikes, fire, etc.
It’s true! You won’t receive coverage under any of these situations.
Here's what you need to do
POLICY NOT IN FORCE
Renew your policy on time. If the damage happens post expiry & before renewal, losses won’t be covered.
WAR AND NUCLEAR RISK
Any car damages to your car due to war, radiation, rebellion, hostilities, terror attacks, or invasion.
ALCOHOL & OTHER INTOXICANTS
At the time of accident, if you or anyone driving with your consent is found under the influence of alcohol.
Eg: The engine's gear oil leaks. Yet you drive & the gearbox fails, which is a consequential damage.
DELIBERATE ACCIDENTAL LOSS
No fraud or staged accidents here. We mean, don’t ever attempt smashing your car with a baseball bat. It won’t work.
Underage drivers, driving without a valid license or on the wrong side of the road are all grounds for your claim being rejected. So beware.
FOR COMMERCIAL USE
There are separate policies for private and commercial cars, so any manipulation of the same can result in a rejection.
A few more things aren’t included in your standard comprehensive policy. Hold on. Paying a little extra premium for add-on covers can include these.
Wear and Tear
Generally, loss due to wear and tear isn’t covered. That’s why IDV of your car is annually revised downwards to adjust for depreciation. A zero depreciation add-on cover ensures that the value of the damaged parts are not depreciated. This includes fiber glass, metal, rubber and plastic parts.
The IDV that you get from your insurer in case of theft/total loss is much below cost of buying new car of the same model. However, the invoice cover makes you eligible for reimbursement of the full original amount that was paid for the car. This is as per the invoice.
Mechanical or Electrical Breakdown
Your engine is not covered for non-accidental failures or malfunctions. For example: Cranking the engine while the car was submerged in a waterlogged area can seize the engine. That’s why adding an engine protector cover is a must to protect the car for every non-accidental exclusion.
Extended Accident Coverage
A personal accident cover for the owner-driver is mandatory. Sadly, the passengers aren’t covered under the same. However, by paying a little extra premium and adding the Passenger Cover, you can insure your co-passengers as well.
Now that you know the car insurance exclusions, ensure that you avoid delay in reporting an accident too. Most insurers allow only a 48-hour time frame within which you have to intimate the insurance company about the claim. But the golden rule of them all? Read the policy document carefully and follow all the rules, and everything should be just fine!
Do exclusions really differ from one insurer to another?
Exclusion clauses are those circumstances which your car insurance provider won’t entertain. You won’t be able to make a claim on losses or expenses arising due to some situations. Though most of the exclusions are common among many insurance companies, there are few exclusions which differ from insurer-to-insurer.
For example: Losses caused because of you damaging your car with a baseball bat won’t be covered because you put your car at risk. This exclusion of damage caused by self is most commonly followed by all insurance companies.
All insurance companies exclude coverage of damages arising due accidents when racing.
Hence, it is always advisable to check your policy document and read the terms and conditions related to inclusions and exclusions of car insurance before purchasing your policy online.
How does it help to understand what is included and excluded from the car insurance policy?
When you know what is included and excluded from your car insurance policy, you won’t face any problems at the time of claim.
For example: you own a private car that is used for personal reason, but if you use it for reasons other than its purpose (using your privately owned car as a taxi) and if your car meets with an accident, then there are high chances that your claim would be rejected.
Having a better understanding of things that are included and excluded in your policy is essential as it creates better clarity and avoids scope of confusion and misunderstandings even at the time of renewal.
What risks are covered in comprehensive car insurance policy?
Your comprehensive car insurance policy covers third-party liabilities and own damage expenses. This includes expenses arising out of accidents and losses caused due to natural and man-made disasters.
In fact, even theft is covered under your comprehensive car insurance policy.
I just consumed little alcohol but accidentally wrecked my car, would my claim be accepted?
It doesn’t matter if you have consumed excess or just limited alcohol. Your insurance company would definitely probe into the matter. And after it has been confirmed that you were under the influence of alcohol at the time of accident, your claim will be rejected. If this exclusion was mentioned on your policy document, then you cannot even argue with your insurer.