Situations Where You Can and Cannot Make a Car Insurance Claim

When someone purchases a car for the first time, he or she might be unaware of all the rules and regulations to be followed. These include rules related to driving or to the car itself. When you buy a new car, it is necessary that you complete the paperwork you need to be able to drive your car legally on Indian roads. Legalizing your car is not limited to completing the process of sale, but also that you buy a motor car insurance, get a Pollution Under Control Certificate (PUC) issued and get a registration certificate for your car.

With respect to a car insurance policy, you need to be aware of the type of policy you have bought and the situations in which you can or cannot file a claim. Let’s begin with understanding the types of motor car insurance:

Types of Car Insurance Policy

The type of car insurance policy depends upon the coverage it offers. Following are the two types of insurance policies you can choose from:

Third Party Liability Car Insurance: This is the most basic type of insurance car insurance. Buying a Third-party Liability Insurance is a must according to The Motor Vehicles Act, 1988. It covers you against any damages caused to the third party involved in an accident with your car. However, it does not cover the cost of repairing damages to your car.

Comprehensive Insurance Policy: This policy provides a comprehensive coverage for your car as well as against the third party damage. The cost of this policy is more as compared to a Third-party Liability Policy as the coverage offered is more.

Situations Covered By A Comprehensive Car Insurance Policy

  • Accidents: If you get involved in an accident which causes injuries, you can file a claim for Personal Accident. The cost of treating your injuries will be borne by your insurer through this claim.
  • Theft: In case your car gets stolen, you can file for a theft claim. The very first thing to do after you realize that your car is stolen is to file the First Information Report (FIR) at the nearest police station. If your car is not found, the police will issue a report that your vehicle is untraceable. You can then file a theft claim.
  • Natural Calamities: If your car gets damaged due to a natural calamity, you can file a claim against your car insurance policy. Natural calamities include earthquake, lightning, storm, cyclone, tempest, tornado, hurricane, flood, landslides &rock slides, etc.
  • Man-made calamities: If your car gets damaged due to a man-made calamity, you can file a claim against your car insurance policy. Man-made calamities include terrorism, strikes, fire, riots, etc.

Situations Not Covered By A Comprehensive Car Insurance Policy

  • Drinking and driving: If you drive your car under the influence of alcohol, drugs or any other kind of intoxicating substance, you will not be covered against the damages.
  • Driving without a valid license: Carrying a valid driving license is mandatory as per the law. If you get into an accident when you were not carrying a driving license, your insurer will not cover the cost of repairs.
  • Electrical or Mechanical Breakdown: If your car experiences electrical or mechanical breakdowns, this loss will not be covered by your insurer.
  • Cost of consumables: The cost of replacing/repairing consumables like nuts & bolts, engine oil etc. will not be covered under a car insurance policy. You need to buy an Add-on to cover this cost.
  • Consequential loss: If your cargets damaged and you continue to drive it despite the damage. And, if this leads to even more damage the later part will be deemed as a consequential loss.
  • Driving outside Geographical limits: Depending on your insurer, go through the geographical limits in which you are allowed to drive your vehicle. Beyond this limit, you will not be covered against any damages.
  • Intentional Damage: If your vehicle is damaged intentionally, the cost of repairs will not be covered.

The Bottom Line

To understand the complete extent of your car insurance policy, you need to go through the fine print of the policy document. Doing so can be tedious offline thus for convenience, understand all the details related to car insurance online. Buying car insurance online can also provide other benefits like discounts, ease of purchase or instant policies.

Author: Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IITs and IISc. She holds 2 patents and over 20 publications in her name. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.