If you have a keen eye for detail and you understand the basics of insurance, you would have noticed an asterisk sign that is placed next to each plan. Almost every insurance policy comes with a tiny asterisk sign and the motor insurance policy is no different. This asterisk sign indicates the exclusions and that is what we will decode in this article.
Exclusions of a Third-Party Motor Insurance Policy:
A third-party motor insurance policy provides insurance coverage for losses and damages to a third-party person or property by your vehicle. In case of any vehicle accident, someone’s property gets damaged or some person gets injured, then the policy provides coverage.
Suppose there is an accident and your vehicle is damaged. In case there are any losses or specific damages that have been incurred on your vehicle, this is not covered in a third-party motor insurance policy. The reason is, this type of policy covers your legal liabilities against a third-party person and property and not on your vehicle.
Take note that a third-party vehicle insurance plan does not cover the following conditions:
Inactive Policy: Most people opt for a third-party vehicle insurance plan to ensure that they at least fulfill the basic legal requirement of having insurance coverage. However, in the case of an expired policy, this purpose will not be resolved and you will not get the coverage if some mishap occurs. For this reason, it is essential to renew your third-party motor insurance policy on time.
Driving the Vehicle Under the Influence of Alcohol: If the accident occurred as the driver while driving was under the influence of alcohol or some other intoxicating substance, then the insurer will not approve the claim.
Driving Without a Valid Driving License: Driving any vehicle without a valid driving license is illegal. If the insurance company finds that at the time of an accident or mishap, you or someone else was driving without a valid driving license, then your claim application will be denied.
Damage to the engine of your vehicle due to incidents such as an oil leakage is not covered.
Violation of any Vehicle Manufacturer’s Guidelines: If the damage in the vehicle occurred because of the violation of the guidelines provided by the vehicle manufacturer, then an insurer is unlikely to pass the claim.
War: Any damage to the vehicle because of situations such as a war, foreign enemy action or intervention, civil war, etc., are not covered.
Deliberate Accidental Damages or Loss to Vehicle: If the losses or damages incurred to your vehicle are due to a deliberate act, it is not covered.
Contractual Liabilities of the Policyholder: In case you have any kind of contractual liabilities towards your insured vehicle, then the policy does not cover it. Contractual liability implies here that when you, as a policyholder, have entered into some contract and pledged your vehicle against a loan to someone else and the vehicle has an accident when that person is driving, it is not covered in your policy. However, if a third-party person or property suffers damages while being driven by the policyholder (you) even if the vehicle is pledged to someone, then the insurance policy covers this.
If the insurer rejects the claim and as a policyholder, you did not take any action or bring the matter before court within 12 months, then you will not be able to recover the claim amount at any point in time.
Conclusion
When you know what is not covered in your third-party motor insurance policy, you would strive to avoid situations wherein claim rejection can be a possibility. For a more detailed exclusion list, do check your policy documents or your insurer’s website.
