Every vehicle owner understands the importance of having car insurance and knowing what is covered in it. However, given all the technicalities of insurance policies, it is not always easy to decipher every word of it. Hence contrary to the idea that we should be thorough with the policy, we only get to have the rough understanding of what is covered and what is not.
Usually what comes covered in an insurance policy is written in big and bold, whereas the policy exclusions along with the terms and conditions are often in the fine print. Also, they come with jargon, making it difficult for the layman to understand it.
Policy exclusions are the consumables that are not covered in the insurance or are conditions, in which the coverage will not be provided.
In this blog, we will talk about the exclusions in a car insurance policy.
Common exclusions in a car insurance policy include:
- Mechanical or electrical breakdown Any consequential loss due to depreciation
- Normal wear and tear of the vehicle
- Damage caused to the vehicle due to the person driving without a valid driving license or driving under the influence of drugs or alcohol.
- Wear and tear of consumables like tyre and tubes
- Vehicles being used otherwise than for the purpose described in the insurance certificate
- Not complying with the terms and conditions mentioned in the policy document.
- Any accident occurring outside the geographical area of operation.
In the following situations, the loss or damage caused to the car is not covered:
- In case if the policy is expired. Thus, it is essential to timely renew the policy because if any damage is caused post the renewal date and before the next renewal, then the loss will not be covered.
- Engine damage caused due to oil leakage.
- If the car driver has violated the car manufacturer’s guidelines for use and as a result the car suffered damage.
- Damages caused to the car due to war, terror attack, civil war, radiation or nuclear material or weapons.
- If a policyholder pledged his car to someone else for a certain time period and the car gets damaged while being driven by someone else, then any loss due to this damage won’t be covered.
- Upon rejection of the claim if the policyholder doesn’t move to court within 12 months of the rejection, then the insurance company will not give the claim at any time later.
Conclusion
In case of car insurance, exclusions are often difficult to comprehend. So if you are unable to understand the policy wordings, you should clarify it with your insurer to make sure that nothing is lost in translation.
