According to the Motor Vehicles Act, 1988, it is mandatory for you to own a valid motor vehicle insurance policy if you own a car or a four wheeler of your own and wish to drive it on the roads of India. However, when you look to buy an auto insurance policy, it is important that you properly compare the plans and check the benefits offered. One of the things that you must do when browsing through the plans is to check for both the inclusions and the exclusions under the policy so that you do not face any claim-related issues in the future.
Though the inclusions and the exclusions under a policy may differ from insurer to insurer, we will have a look at some of the most common inclusions and exclusions that you can come across.
Some of the inclusions under a comprehensive car insurance policy
- Damage to your vehicle:You can claim compensation in case of any damage to your vehicle. Your insurer will compensate you so that you can take care of the cost that you will incur while getting your vehicle repaired.
- If your vehicle gets stolen: In case your vehicle gets stolen, the insurance company will pay you the Insured Declared Value (IDV) of your vehicle which will be mentioned in your policy.
- Death: If you lose your life due to an accident, the insurance company will ensure that your loved ones are fairly compensated with an appropriate amount which will allow them to take care of their day-to-day needs.
- Partial or temporary disability: There can be a very serious possibility of you being disabled either permanently or temporarily in case you meet with an accident. In such cases, the insurer will pay a pre-decided cover amount which will allow you to take care of your day-to-day needs including the medical expenses if you’re disabled temporarily.
- Bodily injuries: Your insurer will provide you with medical compensation regardless of the degree of injuries caused due to a road accident. This allows you to not take any stress and you can use the cover amount to get your injuries treated in a reputed hospital without having to worry about the medical cost.
- Damage to third-party property: In case your vehicle is involved in causing damage to a third-party vehicle, your insurer will compensate the third party for the damages caused ensuring that you are protected from any financial or legal liabilities that may arise out of the situation.
- Man-made disasters: In case your vehicle gets damaged due to a riot or any violent activity, you can file a claim and get yourself compensated for the loss incurred by you.
Some of the exclusions under a car insurance policy
Given below given are some of the circumstances under which you will not be provided cover by your insurer:
- Driving under the influence of alcohol or drugs: If you get injured or lose your life in an accident because you were driving under the influence of drugs and alcohol, the insurance company will reject the claim and not compensate you or the nominee.
- If your vehicle gets damaged due to war: The insurance company will not pay the claim if your vehicle gets damaged in an event of war, invasion, nuclear radiation, etc.
- Accidents staged or damage deliberately caused to your vehicle: Do not expect the insurance company to pay you the cover amount if you stage your accident or deliberately cause damage to your vehicle.
- Mechanical slip up: For example, if you are driving your vehicle despite it experiencing an oil leak which results in your vehicle getting damaged, the insurance company will reject your claim.
- If you do not renew your policy on time: You must ensure that you get your policy renewed on time, for any accident caused after the lapsing of the policy will not be covered. Hence, in order to continue enjoying the benefits of your policy, you must not forget to renew your motor insurance policy on a timely basis.
- If the vehicle is being driven by an underage person: In an event of an accident, or damage caused to your vehicle only because it was driven by an underage person, the insurance company has full rights to refuse to pay you the claim amount.
These are some of the inclusions and the exclusions that you must keep in mind before purchasing a motor insurance policy. It is important that you thoroughly read the policy document so that you are completely aware of what is covered and not covered under the policy before signing it, and you do not face any issues related to your claim in the future.