What is Covered and Not covered in Car Insurance in India

Owning a Motor or Car Insurance is mandatory by law. Each insurance policy differs in the coverages they provide. Some of the basic coverages that yo

Owning a Motor or Car Insurance is mandatory by law. Each insurance policy differs in the coverages they provide. Some of the basic coverages that your Insurance Policy may cover is

  1. Injury while driving: Any claim that leads to a bodily injury can be claimed and covered under the Third Party Insurance.
  2. Damages to Property: Any damages caused by the driver to the property of the third party is covered under the mandatory TP Insurance coverage. 
  3. Death coverage under PA cover: The payments are made to the nominee as mentioned in the policy in case the owner dies during the car accident.
  4. Underinsured coverage: In this coverage, one gets protections from careless driving or a driver who does not have insurance coverage.

As a regular habit, one signs the car insurance policy document, even without reading. And when in an event one thinks about what to do next. In this event of rushing and just signing without reading the document, one misses out a lot of essential benefits that are listed. We could discuss some of the aspects.

  • Outside accident cover:

Apart from just accidents, Car Insurance includes accidents caused out of control. This includes natural calamities, transit damages, human tragedies, etc.

  • Waiver in Towing a car:

In the event of a mishap, one remains stranded in the odd hours of the day or maybe in the remote areas which causes inconvenience to the driver to borrow help from a mechanic who in turn charges more than required based on the situation. Most of the Insurance policy cover a towing charge up to a particular limit.

  • Renewal free on documents:

Renewing of policy document becomes very lengthy or hectic. Online renewals are instant and our done in minutes.

  • Third-Party coverages:

In the case of any car mishap, your insurance policy will help you to pay the losses or damages to the third party.

  • Insurance on Car Accessories:

Normal Car Insurance does not cover for added accessories. You can opt for add on coverage on the accessories fitted in the car.

  • Spot Assist:

Amid nowhere, one can rely on the essential facilities or towing your car, arranging for a cab, refuelling, etc.

  • Nil Depreciation or Zero Depreciation:

In a regular policy, the owner of the car needs to pay for the car parts in case of car repair claims, which are at the depreciated value. In the event of owning a Zero Depreciation policy, one need not worry about paying anything as it covers the car parts at the cost of the market.

  • Cover for Engine:

In the event of the car engine malfunctions due to various reasons, the vehicle owner gets insured, and the insurer bears the cost. However, need to buy an add-on cover.

  • Saving on Taxes:

A private vehicle owner cannot use this benefit for saving on taxes; however, a business owner using it for commercial purposes can benefit from it.

Let us see some of the exclusion factors:

  1. Losses due to wear and tear:Normal wear and tear of any part of the car are not considered and are excluded from the coverage.
  2. Damages to Tires or Electronics:Under the constant use of tires, they are sure to wear out, or any damages caused by rodents to the electrical will not be covered.
  3. Intentional Damage: In the event one damages one’s vehicle intentionally, it will not be covered under insurance.
  4. Influence of Alcohol:If the driver is guilty to be found driving under the influence of alcohol or any other toxic substance.
  5. Damages in Spots activity:Any damages caused by using the car for any sports activity like racing will not be considered under the coverage.

Hence one needs to be educated and understand the difference in benefits involved in the policies and use the insurance wisely.