Does a Car Insurance Policy Cover Fire Damage?
Published On May 06, 2021, Updated On Jul 20, 2021
Aside from being a legal necessity, an car insurance policy serves as a safety net for car-related costs such as legal liability and incidents. The scope of the insurance's coverage, however, is determined by the type of policy you want to insure your car with. You must also keep the policy active, be honest, and file any claims (if any) as soon as possible. Continue reading for a thorough description of an car insurance policy's fire damage coverage.
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The growing number of cars on Indian roads is not only increasing traffic and emissions, but it has also resulted in fires in recent years. Even if most car insurance companies do not accept this obligation and instead blame the car's tempered wiring, what happens to insurance claims in such situations? Many of us wonder if insurance claims are honoured when a vehicle catches fire.
Does a Car Insurance Policy Cover Fire Damage?
According to car insurance experts, if you have covered your car with a comprehensive car insurance plan or a standalone own damage care insurance plan, the insurance provider will cover any loss or harm to your vehicle caused by fire. These losses and damages may be internal or external, such as damage to the car's wiring or damage to the electrical fittings of the electrical parts and vehicle components because of a crash. For claim settlement purposes, fire is described as actual combustion in or of the car in visible flames. As a result, if the car is destroyed due to short-circuiting or overheating, it is not considered a fire, and claims for it are not accepted.
How To File A Claim For Fire Damage?
When your car catches fire, you can immediately call the insurance company and the police to report the incident. Immediate notification of the problem to the insurance agency aids in the organisation of a spot survey. The on-site surveys aid in resolving the argument task. The insurer can also request a full copy of the FIR containing incident information. This successively assists the insurer in carrying out their investigation. If they discovered it during the investigation that the accident was orchestrated or the result of a deliberate effort by the insured to claim the insurance, the claim is denied.
You may also like to read:- Documents You Need To File A Car Insurance Claim
Documents Needed to File A Claim
For claim resolution, you must have the following documents:
- Insurance policy copy, duly completed and signed claim form FIR and Final Report of Investigation
- If it is referred to as an assessment or survey study, it is used to substantiate the damages caused by damage to the insured car.
- Newspaper clipping containing information about protests.
- Original replacement or repair bills.
Claim Rejection Scenarios
When your vehicle catches fire, there are a few cases in which they will deny your car insurance claim. These are the scenarios:
- Mechanical flaws include fuel seepage, oil leakage, engine overheating, high pressure on weak parts of the vehicle, and so on.
- Because of the sparks caused by a tear in the car's electric wiring system.
- Sparks from the car's battery, which cannot sustain the installation of other external accessories.
- Air conditioner replacement or installation, LPG gas kits, and so on.
- Detects or short circuits because of the tempering of the wiring (electrical) device in order to fit any additional accessories such as amplifiers.
Exclusions that You Can Include by Paying a Small Surcharge
Other than the permanent exclusions listed above, there are certain costs and risks that are not covered by a standard comprehensive policy but can be added by paying an additional fee. These are:
- Typical Wear and Tear: A typical detailed policy does not compensate for loss because of normal wear and tear on the car. However, if you apply the wear and tear add-on to your contract, you will get extra coverage.
- Roadside Assistance: A roadside assistance service is available 24 hours a day, seven days a week.
- Extended Accidental Cover: A simple protection for the owner's personal accident is given if the owner has a valid driving licence and is capable of driving a vehicle. However, co-passengers and contracted drivers are not protected by personal injury insurance. You can purchase an optional add-on to cover co-passengers and a paid driver.
- Zero Depreciation Cover: A zero-depreciation or nil-depreciation policy is often referred to as bumper-to-bumper protection. It is an auto insurance rider that removes the factor of depreciation of your vehicle over time from the coverage and provides you with full coverage.
You're If you are familiar with insurance policies, you might also be aware that nothing comes with a mark or an asterisk. Although the insurance policy's coverage is written in bold and large letters, the exclusions and terms and conditions are written in small letters, and a car insurance policy is no exception. However, if you keep the inclusions, exclusions, and conditions of your insurance contract in mind, you can quickly process and resolve the claim. So, if your vehicle has been damaged by a fire, file a claim, and if it is legitimate, your insurance company can settle it.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.