In our previous vlog, we told you in detail about the third-party and comprehensive car insurance policies. While the latter offers coverage of personal injury and vehicle damage, there are some exclusions most of the policyholders aren’t aware of. Hence, in our latest vlog, we talk in detail about some important aspects of a comprehensive insurance plan that one often overlooks.
Comprehensive Insurance – Important Terms and Conditions
Ageing of the vehicle
Ageing of the vehicle plays an important role in the amount of money you can claim through the comprehensive insurance cover. Basically, the claim amount for the damage is based on the current value of your car, which is, basically, much lower than the purchase price owing to the depreciation incurred over the years. For example, a car you bought for Rs 5 lakh would have a depreciated value of Rs 4 lakh after 1-2 years of ownership. Hence, the amount you can claim from thru the comprehensive coverage would be based on the reduced value of your vehicle.
Damages by an unlicensed driver
You shouldn’t expect your car insurance company to pay in case your vehicle gets damaged while being driven by an unlicensed driver. It is not important for the policyholder to be the one driving the vehicle at the time of the mishap to receive an insurance claim, but one simply can’t get any sort of reimbursement in case his vehicle was being driven by an unlicensed driver at the time of the mishap.
Damages by an inebriated or drugged driver
Driving under the influence of alcohol or drugs is a punishable offence. Moreover, an insurance company won’t be liable to pay for the damages in case the car that is involved in a mishap was being driven by someone who was drunk or drugged. This, regardless of whether or not he possesses a valid driving licence.
Wear and Tear
There are many components of a car that break off or stop functioning properly owing to the wear and tear that takes place over a vehicle’s life. Comprehensive insurance covers damages from accidents but doesn’t offer reimbursement for damages caused due to wear and tear. Hence, you can’t claim reimbursement to get some loose panels tightened or for wiper blades are fused blubs. Moreover, even those damages that are small in nature or have a smaller diameter, usually lesser than ½” are considered normal wear and tear and are not covered under the comprehensive coverage.
Mechanical and Electrical components
Your car’s comprehensive insurance policy also doesn’t cover electrical and mechanical parts. Hence, any mechanical or electrical failure that your car might suffer due to your own or anyone else’s fault won’t come under the comprehensive coverage. For example, you can’t claim insurance for the damage suffered by your car’s engine that is caused due to low oil or coolant level. However, there are certain ‘add-ons’ that can be purchased along with the insurance policy that covers even some of the mechanical parts from damage caused by water or some natural calamity. Of course, you need to pay more for the extra cover.
Tubes and Tires
Another part(s) of your vehicle that isn’t covered by in the insurance are the tubes and tires, which are prone to suffering damage through wear or tear or through sharp objects and bad roads. However, in case the damage occurred to them is due to an accident, the insurance company is liable to pay 50 per cent compensation. So, basically, above are some exclusions that are made to a typical comprehensive insurance policy.
Is there more that you wish to know about a car insurance policy? You can get free advice from our in-house experts by letting us know of your doubts through the comments section.
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