List of General Inclusions and Exclusions in a Car Insurance Policy

Having a valid car insurance policy is mandatory by law. So, when you purchase a car before you can leave the showroom, you will need an insurance plan in place for it too. A car insurance policy is a kind of motor insurance that provides a safety net in the form of monetary compensation, in case of any mishaps leading to losses. You can buy your car insurance policy directly from the insurance company through an agent or purchase it an online insurance portal. Regardless of where you buy your insurance plan from, there are a few details that you should be mindful of while purchasing a plan.

Types of car insurance policies in India

There are two types of new car insurance plans available in India:

1. Third-party policy: A third-party insurance policy is more common in comparison to a comprehensive insurance policy, as it is mandatory under the Motor Vehicles Act, 1988. It covers only the damages and losses caused to the third-party person, car, or property.
2. Comprehensive policy: A comprehensive insurance policy provides cover for third-party liabilities, as well as any damage to your own car, theft of your car and personal accident cover for owner-driver.

There is also a third kind of car insurance available in the market, which is not as widely subscribed. It is commonly known as the “Pay-As-You-Drive” Insurance policy and provides usage-based insurance for your car. The insurance plan helps you insure your vehicle at an affordable cost, depending on your use. The number of kilometers that you are planning to drive determines the car insurance premium amount.

Shared below is a general list of inclusions and exclusions in a car insurance policy.

General inclusions in a car insurance policy

• In case you have a comprehensive insurance policy, damage to your own car is covered by the insurance company. The insurance covers all kinds of damages incurred by you if you meet with an accident.
• In case you or your co-passengers suffer injuries in an accident, the insurance company will provide you with financial cover. This helps in paying the unexpected medical bills for treatment.
• If a third-party has incurred damages or a person has been caused bodily harm because of your car in an accident, the insurance policy covers the cost of these claims.
• Damage to another person’s property is covered under the insurance policy, and the insurance company is liable to pay for the damages incurred.
• The same policy also provides insurance cover in case the car is damaged due to natural calamities such as earthquakes, floods and landslides.
• Your car will also be insured against man-made disasters such as riots, terrorist attacks or fire.
• If your car is stolen, you can claim the insurance amount equivalent to the insured declared value mentioned in your insurance policy.

General exclusions in a car insurance policy

Some exclusions are not covered under third-party insurance. You can find them mentioned below:

• Damage or losses incurred on your own vehicle.
• Damage caused to your own vehicle during man-made disasters, such as fire, strikes, etc.
• Damages incurred to your own vehicle because of natural calamities, such as hurricanes or hail storms.
• Car theft is not insured under third- party insurance. This is why you will not receive any compensation from your insurance company in case of a burglary.

Apart from these, there is also a list of permanent exclusions that are not covered under any insurance policy. Such as:

• If you end up in an accident while under the influence of alcohol or any illegal substances, the insurance will stand to be void.
• In case the car was being driven by an underage driver, the insurance will not cover the losses from the damages.
• Damage caused to the car or an individual in an accident where the driver did not have a valid driving license is not covered by the insurance cover.
• If your car is being used for illegal purposes, the insurance policy will not cover any damages in case of a mishap.
• Any damages that go over the insured limit are not covered by the insurance company.
• Loss or damage to your car during war, or similar situations, are not covered by the insurance policy.
• If your insurance company finds the accident to be fraudulent or if the owner causes willful damages to the vehicle, the claims will not be entertained.
• Any damage caused to your car during the period between your policy ends and its renewal is not covered. This makes it vital to timely renew your insurance plan.

Conclusion

You can buy car insurance online. India is a wide market for insurance, and each plan brings something unique to its users. However, as a rule of thumb, the above mentioned general inclusions and exclusions remain constant. The car insurance rates also vary depending on the features covered or excluded from the contract.

There are certain exclusions that can be paid for at an add-on price and be added to your basic third-party insurance policy. Such factors help customise your car insurance plan as per your requirements and also manage premium costs.