Vehicle insurance these days is a fundamental part of owning a car. Banks have now made it necessary to have auto insurance before they give you credit to buy a vehicle; you are likewise not permitted to drive your new vehicle on the roads unless you have your vehicle insured. Many people know about auto insurance, but hardly few are aware of what is included and what is not included in an auto insurance. Here we discuss things that are excluded from a typical vehicle insurance.
The List of Exclusions:
- If the insured or another individual, with the awareness and assent of the insured, is driving the car after having drugs or some other inebriating substance.
- Damage to the motor because of oil spillage.
- If a driver rides a car without an authentic driving license..
- Any damage to the car due to human causes like an act of terrorism or war. Even harm to the car due to nuclear radiation is not secured under a standard engine policy.
- The violation of car manufacturer’s rules for utilisation of car and related failures or breakages..
- An intentional, accidental loss by the owner. So if an accident is caused intentionally, then its coverage gets voided.
- The policy will not cover any legally binding obligation on the part of a policyholder towards the vehicle. This legal binding contract may include examples like handing over the car to cab aggregator business etc. The liability denotes any claim that may emerge as a result of the policyholder going into an agreement. Now if any harm happens to the car in this duration of the contract being in force, the owner cannot claim for compensation from the insurance provider. It’s an important point to note especially for those who own a yellow-plate vehicle or a t-permit cab..
- Consequential losses or damages which are an outcome of a particular activity by the policyholder or a third-party (regardless of being intentional or by accident) and not a result of an indeterminate occasion are not secured. So if you are in a waterlogged area and you start your car, and your car gets damaged, then the insurer will not be liable to pay up. It could be a fault, a deliberate action or a move made in an emergency circumstance, but, the guarantor won’t secure it..
Not many know that if a claim is rejected, the car owner needs to initiate legal proceedings within 12 months of such rejection. Else, he will lose the right to approach the court for rejection of the claim.
With these exclusions in your knowledge, you can make a well-researched insurance purchase for your favourite four-wheeler.