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What motor insurance covers vs. What it excludes

Motor insurance covers natural and man made calamities, such as lightning, floods, and so on, third party legal liability, and personal accidents. It doesn't cover normal wear and tear, depreciation, breakdowns, and so on.

Apnainsurance.com Research Bureau

26 Nov 2007

What it covers

A comprehensive car insurance protects you against any loss or damage caused to the vehicle and its insured accessories as a result of natural and man-made calamities, such as:

Natural calamities:

    • Fire
    • Explosion
    • Self-ignition or lightning
    • Flood
    • Typhoon/hurricane/storm/tempest/inundation/cyclone/hailstorm/frost
    • Landslide/rockslide
    • Fire and shock damage due to earthquakes
Man-made calamities:
    • Burglary
    • Housebreaking or theft
    • Riots or strikes
    • Accidents by external means
    • Malicious acts
    • Terrorist activity
    • Damage whilst in transit by road, rail, inland-waterway, lift/elevator, or air

Third party legal liability: A mandatory part of the insurance cover, it protects the vehicle owner against legal liability arising due to an accident, causing any permanent injury or death of a person or any damage caused to property.

Personal accident cover: The motor insurance plan compulsorily provides personal accident cover for individual owners of a vehicle while driving. The owner can also opt for personal accident cover for passengers in the vehicle.

What it excludes:

Typically, the motor insurance plan does not provide for:

    • Normal wear and tear or general ageing of the vehicle
    • Mechanical/electrical breakdown
    • Depreciation, wear and tear of consumables like tubes and tyres
    • Damages that occur while a person is driving with invalid driving license
    • Damage that occur while a person is under the influence of drugs or liquor
    • Damage due to a war, civil war, mutiny, or nuclear risk
    • Claims arising out of contractual liability
    • Use of vehicle other than what it is meant for. For example, if a private car is being used as a taxi and gets involved in an accident, the owner will not be able to claim damages.

See also:

What is automobile insurance? Is it mandatory for a vehicle to be insured?

How long should I cover my vehicle?

What is the amount that I should insure my vehicle / What is IDV?

What are the different kinds of vehicles that are insured by the motor insurance companies?

Is there an age limit for vehicles being insured?

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