We need our car to be insured to be able to take it on road. Other than the liability part that is compulsory, we are advised to take cover on the own damage part called the comprehensive cover policy. A lot has been said on reducing the premium of car insurance, but cheapest not necessarily means the best. There are a lot of things that are not covered in a car insurance policy. While there are some general exclusions, there are some that may be specific to a particular plan or company. This plays a part in premium calculations as well as claim settlement.
Exclusions clause is crucial to go through before buying the policy. Some common exclusions are:
1.Normal wear and tear of vehicle You are not entitled to claim regular service and repair of the vehicle due to aging and regular wear and tear. Wear and tear of consumables like tires and tubes is also not covered.
2.Depreciation or any consequential loss Depreciation of the vehicle is not covered under any vehicle insurance product unless specific depreciation cover has been taken. One can take zero depreciation cover only up to three years on a new car. Consequential losses in vehicle are also not covered by the vehicle insurance.
3.Mechanical / electrical breakdown Mechanical or electrical breakdowns of the vehicle are not covered.
4.Vehicle not being used as per limitations to use If a vehicle is being used for purpose it is not meant for; no claims are entertained by the insurer. So, if a vehicle for personal use is being used as a commercial vehicle or a public carrier and claim arises, the damages will not be covered.
5.Damage by a person driving the vehicle without a valid license If a person driving the car at the time of accident does not have a valid licence the claim will be denied.
6.Damage by a person driving the vehicle under the influence of drugs or liquor If the person driving at the time of accident is under influence of drugs or liquor, the insurance company will reject the claim.
7.Radioactive contamination, nuclear fission, war invasion Any damage caused due to nuclear reaction, radioactive contamination, or nuclear war is not covered. Loss due to terror attacks, mutiny, or any war like situation is not covered.
These are general exclusions followed by almost all insurance companies. If an insurance company offers any other exclusions, mandatory or optional, you need to check that the insurance policy still suits your requirements. There is certainly o point in taking an auto insurance that is cheap but excludes major features.
Exclusions clause is crucial to go through before buying the policy. Some common exclusions are:
1.Normal wear and tear of vehicle You are not entitled to claim regular service and repair of the vehicle due to aging and regular wear and tear. Wear and tear of consumables like tires and tubes is also not covered.
2.Depreciation or any consequential loss Depreciation of the vehicle is not covered under any vehicle insurance product unless specific depreciation cover has been taken. One can take zero depreciation cover only up to three years on a new car. Consequential losses in vehicle are also not covered by the vehicle insurance.
3.Mechanical / electrical breakdown Mechanical or electrical breakdowns of the vehicle are not covered.
4.Vehicle not being used as per limitations to use If a vehicle is being used for purpose it is not meant for; no claims are entertained by the insurer. So, if a vehicle for personal use is being used as a commercial vehicle or a public carrier and claim arises, the damages will not be covered.
5.Damage by a person driving the vehicle without a valid license If a person driving the car at the time of accident does not have a valid licence the claim will be denied.
6.Damage by a person driving the vehicle under the influence of drugs or liquor If the person driving at the time of accident is under influence of drugs or liquor, the insurance company will reject the claim.
7.Radioactive contamination, nuclear fission, war invasion Any damage caused due to nuclear reaction, radioactive contamination, or nuclear war is not covered. Loss due to terror attacks, mutiny, or any war like situation is not covered.
These are general exclusions followed by almost all insurance companies. If an insurance company offers any other exclusions, mandatory or optional, you need to check that the insurance policy still suits your requirements. There is certainly o point in taking an auto insurance that is cheap but excludes major features.