Car insurance exclusions are rarely explained to customers. Insurance agents and executives want to avoid explaining exclusions because it may slow down sales. It is, however, important that one is aware of the exclusions so that your claims do not get rejected in future.
Here are the common exclusions that are not covered under most policies, including popular ones like Bajaj Allianz car insurance–
- Loss due to wear and tear: The spare parts naturally wear out. Insurance only covers accidental damages, not routine wear and tear. This includes car tyre wear from usage over time and other consumable spares required.
- Lapsed policy claims: In exchange for a premium, the insurance company agrees to compensate the insured customer for loss or damages to the car or a third party caused by an insured peril.
But, suppose the loss or damage occurs after the car insurance has expired, then the insurance company may not be liable to settle the loss or damage incurred by the customer.
- Alcohol or drugs: Car insurance does not cover accidents caused by the insured driver/owner driving under the influence of alcohol, drugs, or other intoxicants. Thus, own damage and third-party car insurance claims, are not payable if the insured is found to be under the influence of alcohol and drugs.
- Intentional damage: Insurance covers property loss or damage, but car insurance doesn’t cover the loss or damage to the car caused intentionally. If it is proven that the customer deliberately caused damage to the car, no claim will be entertained.
- War & Nuclear: A standard motor policy does not cover car damage from war, terror attacks, invasion, foreign enemy action, civil war, mutiny, rebellion, hostilities, radiation, or nuclear material/weapons. Car insurance covers riot damage but not war damage.
- Racing: Car insurance coverage does not cover organised racing-related collisions or third-party damage. Organised car racing is illegal in our country because it can cause accidents that endanger road users.
- Manufacturer’s warranty: Car insurance does not cover damage caused by violating the manufacturer’s guidelines. Car insurance policies exclude loss or damages covered by the vehicle manufacturer’s warranty.
- Consequential loss: If a customer drives a car with leaking oil and damages it irreparably, this is a consequential loss and will not be covered under the car insurance policy.
- Contractual liability: The policyholder’s contractual liability to their car may not be covered by the car insurance policy.
For instance, if a customer lends his car to someone and the car gets damaged while being driven by that party, the car insurance policy does not cover the loss or damage.
- Outside geographical area: Any law made in the country is only valid in that area, and incidents outside that area are dealt with according to that area’s rules. Extra premiums can cover driving outside the area and insurance coverage.
- Valid driver’s licence: The Indian motor vehicles act requires drivers to have a valid licence or risk fines or/and imprisonment. The insurance company may deny the claim if the driver lacks a licence.
* Standard T&C Apply
For further clarity, we suggest checking out the Bajaj Allianz car insurance. Their car insurance calculator can also help you to calculate your premium amount before your next renewal.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.