When you purchase a car insurance policy, that is mandatory incidentally, you think that you're covered against all odds. Because you have paid a hefty premium you get the concept your insurance policy would cover you for the possible contingencies that might strike. Right?
Wrong!
You should browse the fine print of your car insurance. While it is true that your car insurance provides a comprehensive cover, there are several specific instances which aren't covered. Surprised? You shouldn't be. There are limitations in your insurance coverage that are called exclusions and you should focus on them to prevent future surprises. To make your work easier, listed here are 7 common exclusions which you would get in all auto insurance policies –
#1 Driving under the influence of alcohol and/or drugs
How often have you been warned to not drink and drive? Even though you escape the notice from the police, you can't escape the rejection of your claim in the event of any consequential accidents. Accidents faced when driving while impaired of alcohol and/or medicine is excluded from coverage. As you are committing a legitimate offence, pricier your insurance policy to cover your crimes.
#2 Driving with no valid driving license
A driving license is mandatory to drive a vehicle, right? Though everyone know the rule, it's ignored by many. The consequence – if you face any accident and claim for it, you would be denied coverage. The insurer first checks the driving license when a claim is created. If you're not able to produce a valid driving license bid goodbye to assert settlement.
#3 Accidents away from geographical boundaries of India
Your car insurance policy, however comprehensive it might be, covers you only on Indian roads. If you're driving away from Indian subcontinent and face any sort of accident, any claims made would not be valid. You would have to foot the price yourself.
#4 Consequential losses
Though the damages suffered from your car are covered within car insurance policy, any consequential losses are excluded. Consequential losses are losses which result from your actions or even the actions associated with a third party. They aren't because of any natural or man-made disasters that are covered in the policy. For instance, in case your car gets stuck inside a water-logged area and you try to crank up to start, you might result in a hydrostatic loss to the engine. This loss damages your engine which needs to be repaired or replaced. Because the loss was not due to flooding but because of your action to begin the vehicle, method . consequential loss and excluded from coverage.
#5 Normal wear and tear and depreciation
The normal deterioration of the car and its parts are required losses which accrue because of usage. These losses are not covered from your policy. That's the reason, whenever you make a claim, the insurer deducts the relevant depreciation from the repair costs and then pays the remainder.
#6 Violation of guidelines regarding the using the vehicle
The car manufacturer lays down guidelines for the usage of the car. If you don't follow the following tips and for that reason which you suffer damages you would not obtain the settlement of your claim.
#7 Claim on the lapsed policy
A car insurance is really a one-year contract which needs annual renewals. If you don't renew the policy within the deadline, the policy lapses. Once the policy lapses your coverage ceases. Any claim which is made after such a lapse is, obviously, not honoured.
So, these are the most typical exclusions which you can get in an automobile insurance policy. Beware of their list and keep them in mind to ensure that whenever your insurer rejects your claim on any of these grounds you wouldn't be shocked or cry foul.
