Inclusions and Exclusions in a Car Insurance Policy

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You know that car insurance is an important and compulsory feature of every vehicle. How familiar are you about the various inclusions and exclusions of car insuranceRead on to know more.

Knowing all about the various coverage allowed and the various exclusions of a car insurance policy is important for every car owner.  This way, you do not have to pay a high premium on your car insurance if you are not covered accordingly. Are you aware of the various features of your car insurance policy? Let us learn about them. But before that, let us see the various types of coverage available under car insurances.

Types of car insurance coverage

There are mainly two types of coverage available under car insurance policies, namely;

  1. Third-party Insurance coverage, and 
  2. Comprehensive Insurance Coverage

1. Third-party Insurance coverage:

The third-party insurance is the compulsory policy that every car owner must have to drive his/her car without hassle across the roads in India. It covers the third party liabilities like damages to people and property as well as third-party death.

2. Comprehensive Insurance Coverage:

On the other hand, the comprehensive car insurance policy covers various things like car theft, damages caused by accidents, damages caused by fire, by natural calamities and man-made disasters and so on.

Popular Inclusions and Exclusions in a Motor Insurance Policy 

Inclusions of Car Insurance Policy

Below are the various inclusions or coverage in insurance that are allowed under a car insurance policy:

  • Covers third-party physical injuries – if your insured car causes injury to a third-party person in an accident, your third-party insurance coverage will cover against any such physical injury caused to the third-party. Further, it covers compensation against disability in case the accident causes it.
  • Covers third-party loss of life – your car insurance policy also covers loss of life in case the accident causes the death of a third-party person. In such cases, the compensation is fixed by the Motor Accidents Claims Tribunal.
  • Covers third-party damage of property – if your vehicle causes any damage to third-party property, your car insurance will cover the same for up to 7.5 lakh rupees.
  • Cover against Natural Calamities – if you buy a comprehensive car insurance policy, you can get coverage against damages caused to your car by several natural calamities such as floods, cyclone, landslide, lightning and so on.
  • Cover against Man-made Disasters –  if your car gets damaged due to any man-made disasters such as riots, strikes, vandalism and so on, then your comprehensive coverage policy would cover the same as well.
  • Covers car Theft – this is another common coverage offered by car insurance companies. So, if your insured car gets stolen, you can get coverage for the resultant loss under your comprehensive car policy. Here, you can get a compensation amount that is the same as the IDV of the stolen car.
  • Cover against Personal Accident – the personal accident cover available with your car insurance provides coverage in case of injury or death of the driver or the owner of the insured car in an accident. As per rule, a 15 lakh rupees coverage is compulsory under both third-party and comprehensive car insurance policy.
  • Coverage against Fire – car insurance also covers damages caused to an insured car by fire or explosion.
  • Coverage against Accidents –  also, if the insured car is damaged in an accident on the road, your car insurance coverage covers you against the expenses incurred in repairing the damages caused by such an accident.

Also Read: What are the Main Components in Car Insurance Coverage?

Exclusions of Car insurance Policy

Below are the various exclusions or features that are not covered under a car insurance policy:

  • Do not cover damages caused due to intoxication – damages caused due to drunk driving are not covered under car insurance. If any accident takes place when the driver was under the influence of alcohol, in that case the motor insurance companies does not offer coverage in such cases.
  • Do not cover damages caused because of driving without license – also, if a car collides and causes an accident at a time when the driver was driving without a valid license, in that case the insurance company do not offer coverage.
  • Do not cover claims for lapsed policies – if a car accident takes place at a time when insurance of the car got lapsed and was not renewed by the car owner, even in that case, the insurance company will not pay any coverage. So, it is important to renew a car insurance policy on time.
  • Do not cover damages caused to your car outside India – if your insured car sustains damage due to an accident which took place somewhere outside India, in that case the policyholder will not receive any compensation for the cost of repair.
  • Do not cover wear and tear – most car insurance policies do not cover wear and tear taking place over time. They cover unforeseen losses and damages.
  • Do not cover mechanical damages – your car insurance also doesn’t cover against mechanical damages or breakdown of your vehicle.
  • Do not cover Consequential damage –  your car insurance policy also doesn’t cover damages caused by things like towing of car during accidents.
  • Do not cover damages of tyres and tubes – most insurance policies also do not cover damages done to tyres and tubes of cars even if they are caused during an accident.

Wrapping Up

It is very important to go through and understand all the inclusions and exclusions of car insurance policies before buying a plan. For this, it is important to go through the policy document well so that you do not have to face any trouble at the time of making a car insurance claim. Further, you can compare and acquire insurance online car to obtain the best suitable insurance.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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