The motor insurance ads we often see on the TV channels and even online media platforms are always so enticing and promising. Isn’t it? These ads make tall claims about how each and everything will be covered under their insurance policy. So, are they making the customers fool? Absolutely not.
There are many technicalities associated with the policies, and a smart customer always gets into the details before spending his or her money on a motor insurance policy. The long list of Terms & Conditions associated with these insurance policies are not to make you feel confused; but to make the whole process more transparent, by listing all the vital details rather than hiding them.
A lot of car insurance policy holders get shocked when the time of filing a claim arrives. This happens mainly because they do not pay attention to the information mention in the documents. The car insurance policy you buy comprises of various aspects. Most of the policies include third-party motor insurance and they also cover own-damages. It is only the conditions that matter a lot. So, to help you out in this regard, let us provide you some useful information regarding the major exclusions; i.e. what is not covered by your motor insurance policy.
The exclusions you need to be aware of
Like we know, according to the Motor Vehicles Act, it is compulsory for every vehicle owner to have third-party insurance. This type of insurance policy provides coverage only for the legal liability of the vehicle owner, and also for the damage he/she might cause to a third party. It is important to mention that third party cover does not include (i) the cost of repairing your damaged vehicle (ii) your medical expenses related to the car accident. Apart from them, these are the exclusions you need to be aware of-
- During the time of accident, if the car was being driven for someone who is not the owner of the vehicle, in that case the insurance policy will not cover the damages. So, before you handover the keys of your car to someone you know, make sure you are confident about his/her driving skills.
- If the car was being driven by someone who does not have a valid driving license then any kind of damage to the vehicle or to the third party might not get covered under the policy.
- Floods, earthquake, hurricanes, etc. often cause a lot of damage to our properties and vehicles. Damages caused by any kind of natural calamity are often referred to as an “Act of God” by the insurance companies. It is important to keep in mind that not all comprehensive insurance policies cover these damages. So, before sign the motor insurance papers, you must get this thing cleared.
- Many car owners have the habit of carrying and storing expensive items or valuable documents in their car. Items like laptop, jewellery, smart phones, etc. often get stolen from the cars. In such cases, your motor insurance policy will not cover for the loss incurred by you.
- Another exclusion you need to keep in mind is related to the violation of the car manufacturer’s warranty. When you buy a car, it comes with at least 2 years of warranty period. But, the warranty might become void if you do not follow the guidelines set by the manufacturer of the car. Installation of aftermarket equipments in the car is one such example of violation. Any kind of damage like breakage or failure of the vehicle will not be covered in such cases.
- Cars often get stolen or vandalized when they are parked out in the streets, particularly during the night hours. Most of the car insurance policy providers do not accept claim request in such cases. It is the onus of the car owner to park his/her vehicle in the garage or at a safe location. On the grounds of carelessness, your claim might get rejected.
- The motor insurance policies for personal purpose vehicles and the commercial ones are different. If you use your personal car for business purpose then any kind of damage to the vehicle will not be covered by the insurance policy.
- Leakage of oil from the engine can lead to major damage to the whole system. In such a case, you cannot claim for the damage. It is the onus to the manufacturer to cover the damage caused to your vehicle.
So, those were some of the exclusions that should be kept in mind. The best insurance companies maintain high level of transparency with their customers. Before you choose an insurance policy for your vehicle, you must clarify your doubts with the insurance advisor. Remember, a smart buyer never shies away from asking questions.