List of car insurance exclusions that you need to be aware of
List of car insurance exclusions that you need to be aware of 15th September 2022
Car insurance is mandatory by law for every car owner in India. Also, it provides us adequate protection against accidents and third-party cover. However, some exclusions or incidents are not covered under a standard car insurance policy. Some insurance agents might not tell you about them explicitly to sell more policies, but you need to be aware of all the essential terms and information at the time of purchase of the policy.
Let us go through some of the key exclusions.
1. Damages to tyres and electrical components:
A car insurance policy does not cover the tyres of your car. They are bound to wear and tear with regular usage and time. Also, your insurance policy will not cover any damage to your car's electrical components and wiring. These include lights, music system, central locking system, etc. Damages can occur because of mishandling, rough weather, short-circuiting, pests, rodents, etc., but you have to vent your pockets to cover these damages on your own.
2. General wear and tear:
Your car insurance policy will not cover your car's general wear and tear that happens with time, usage, and weather conditions. Hence, the policy will exclude damages such as scratches and dents, rusting of the body, etc.
3. Damages caused by man-made events such as war:
Your car insurance policy will not cover damage to your car because of man-made events such as a war. It will also exclude damages from a nuclear explosion, chemical attack, terror attack, etc.
4. Driving under the influence of alcohol:
Your insurance company would not be liable to accept your claim if you or your driver were driving under the influence of alcohol or any other toxic substance such as drugs at the time of the accident. We advise you not to drive after drinking. Instead, take a cab to your destination and stay safe.
5. Ape hangers:
Half of the bike enthusiasts consider these the most comfortable set of handlebars available in the market. For tall riders, these can be the most comfortable, while for others, if it is not set according to their height, the hands and back would go numb. These give a more upright position and eliminate the need to hunch over. These are supposedly the best handlebars in the market for long road trips.
6. Intentional damage:
Your car insurance policy will exclude any claims against damages to the car or any property caused intentionally by you.
7. Expired policy:
Always renew your car insurance policy well in time because your claim will not be passed if the accident occurs after the expiry of your policy. The insurance company will reject your claim even if you have applied for renewal, but your policy was not active at the time of the accident.
8. Oil leakage:
Your car insurance excludes damage to your engine due to leakage of oil.
9. Pledging of car:
If you have pledged your car to someone else, and the person meets with an accident, the insurance company will not pass your claim.
10. Invalid driving licence:
An insurance company does not cover you if you were driving without a valid driving license at the time of the mishap. It is recommended to have valid documents handy while driving a car.
11. National territory:
An insurance company is liable to pay for your damages only if you sustain them while driving in the national territory of India. Any damage outside India, say Nepal, will not be covered under the policy.
12. Re-appeal clause:
You have 12 months to appeal to the court if you feel that the insurance company has wrongly rejected your insurance claim. After this time period, you cannot appeal against the insurance company's rejection.
One must always be aware of the above situations under which your car insurance policy will not protect you. However, protection against some of the above incidents can be bought by buying a zero-depreciation policy instead of a regular car insurance policy.
You can also buy separate covers and add-ons such as an invoice cover, engine protector cover, etc., which will give you added protection. Always ensure that you go for the best car insurance company in India that gives you a clear picture of all the inclusions and exclusions right at the time of purchase of the policy.
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Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.