Have you been thinking of purchasing a car insurance policy lately? If so, you need to check for the situations and consequences on which you can raise a claim, and on which, you may not be able to raise a claim. Basically, you should have an idea about inclusions and exclusions in a car insurance policy. Below, we have discussed some of the inclusions and exclusions in general motor and vehicle insurances.
Inclusions in a Car Insurance Policy
Below-mentioned are some of the important inclusions in motor insurance policies.
- A Comprehensive Policy or a Package Policy covers own damage or loss to the car insured. The ‘own-damages-cover’ pays you in case of a theft or damage to the insured car. Such a policy offers coverage on damage or loss to your vehicle caused by fire, self-ignition, theft, riot, explosion, natural calamity, act of terrorism, etc. It may include third-party insurance as well.
- Third-party vehicle insurance is a mandatory cover. It pays for fiscal liabilities resulting from your vehicle to a third-party, thus, protecting you from claim arising from a third-party. It can take care of legal costs and damages (death, damage, bodily injury to the third party property from your vehicle) pertaining to the accident. However, this cover will not pay for any damage or repair of your car, if you suffer from any injuries resulted from the said vehicle.
- Roadside assistance is a part of car insurance plans these days. Here, costs related to towing of the car in case of break down on a public road or due to an accidents (within specified limits), will be covered. The policy-providing company may even arrange an on-site technician for necessary repairs. Arrangement of alternate transportation may be included in the policy. Other services such as refuelling of car, replacement of automobile parts, and coordination for medical assistance, may be included.
Exclusions in a Car Insurance Policy
Below-given are some of the exclusions seen in car insurance policies.
- Claims will not be fulfilled if the insured or any other person had been driving the car under the influence of drugs, alcohol, or any intoxicating substance, or if the person had been driving without a valid license.
- If the motor policy is not renewed in time, then damages post the expiry date will not be covered. Deliberate accidental loss will not be covered. Damage to engine because of oil leakage, or violation of vehicle manufacturers’ guidelines for car related breakages, failures, or uses will not be covered.
- Consequential damages or losses resulting from a certain action of a third-party or policyholder and not an outcome of a sudden event shall not be covered. An example of such loss is engine damage because of hydrostatic loss in monsoon. Contractual liability is also usually not covered. These liabilities are made by the policyholder (you) towards the car, for instance a car loan.
There are many such inclusions and exclusions in a car insurance policy. You must check for the same with your insurance provider before purchasing a relevant policy.