Get to Know the Common Inclusions and Exclusions of Motor Insurance Policy
Driving a car on the road without an insurance is practically illegal, even if you have a driving license. In most cases, the company themselves proposes a pre-defined car insurance policy understated by their associated insurance company. Even if they do not, every buyer is advised to avail car insurance before taking it down on the road. Besides, well-defined vehicle insurance is extremely necessary, as it covers various kinds of expenses. Whether the car is brand new or used one, vehicle insurance is mandatory. Car insurance policy can be availed for a stipulated period of time, on the expiration of which, the owner has to renew it. The policy should be renewed within the due date listed by the company in order to avoid late fine levied on the policyholder. The facilities offered, the validity period decided, as well as the terms and conditions, vary as per the companies offering insurance. It is therefore advisable to always compare the policies online before choosing one for yourself. Thus, here is a list of certain general inclusion and exclusions of motor insurance policy which might help you in the long run.
The policyholders should understand and verify the benefits provided by the car insurance company before making any commitment. They should always look out for the most obvious and mandatory inclusions in the policy they are going to choose. Such inclusions are hereby categorised under Third Party Cover and Comprehensive Policy. To start with, one should look out for-
Third Party Cover
- Personal Coverage: Every owner should pay grave attention to personal coverage. Often the life-threatening accidents may result in disability (partial or complete) or in worst case claim the life of the owner. In such cases, under the terms of personal coverage listed under vehicle insurance, the company will bear the medical expense of the victim.
- Faulty Machinery: The owner can exercise the power of Third Party cover and claim for benefits in case the car is found faulty right from the beginning of purchase. However, one should not confuse it with damage repair of any kind.
- Accident Damage: Post-accident damage coverage is probably the most important necessity of every car owner. Damaged cars often leave a hole in the pocket, if not insured well. However, availing proper car insurance policy guarantees complete coverage of the cost of repairing and replacement of the damaged parts under "Own Damage Cover" section.
- Unforeseen Circumstances: The owner can claim the insurance money in case of unforeseen circumstances. This includes natural calamities like earthquakes, tsunamis, landslide, floods, etc. Apart from this, the car insurance policy also covers expenses for repairing after a fire, strikes, explosion, riots, etc.
No matter how perfect a motor insurance policy might seem, there will always be certain exclusions which the owner must pay attention to. These are:
Intoxication: The car insurance policy will not take any kind of responsibility for accidents or damage caused in case the driver is found guilty of alcohol consumption or drug abuse. Under no circumstances shall the owner receive any kind of accident damage coverage in such cases.
Illegal Driving: The car insurance company will not provide any kind of damage coverage if the driver is underage, not legally a citizen of the country and does not have a driving license.
Criminal Activities: One cannot avail the car insurance policy in case the car gets involved in criminal activities like murder, theft, staged accidents, etc.
Expiration/ Lapse of Policy: It is always mandatory to renew the motor insurance policy as any accident or damage during the period of expiration shall not be covered by the company.