What All is Not Covered Under a Car Insurance Policy?
Most of the times, we select a car insurance policy on the basis of what all is covered under it. Following this process, we often miss out on checking what all is not covered under a car insurance policy. Exclusions of a policy are as important as its inclusions. In this article we will discuss both the inclusions as well as exclusions so that you can choose a type of car insurance policy after getting its 360 degree view.
Types Of Car Insurance Policies
On the basis of insurance coverage, there are three types of car insurance policies, namely:
- Third party liability car insurance policy
- Comprehensive car insurance policy
- Standalone own damage car insurance policy
Let us understand what all is included and excluded in each of these types of car insurance policies:
Third Party Liability Car Insurance Policy Inclusions and Exclusions
A third party liability car insurance policy insures a policyholder against financial liabilities for compensating a third party. However, it does not protect the insured’s car as well as the policyholder himself (if not opted for otherwise).
Inclusions | Exclusions |
Bodily Injuries of Third Party The insurance company will pay for the treatment of an injured third party on behalf of the policyholder. | Bodily Injuries of Policyholder The third party liability policy does not by default cover bodily injuries incurred by a policyholder/car owner. |
Death of Third Party The insurance company will indemnify for the death of a third party on behalf of the policyholder. | Bodily injury of Co-passenger(s) The policyholder will not get compensation for the injuries suffered by the co-passengers travelling in the insured’s car. |
Third Party Property Damage The insurance company will offer a compensation of up to Rs. 7.5 lakh for damages of third party property. | Damages Incurred by the Insured’s Car The insurance company will not be liable to compensate for the damages incurred by the insured’s car in a road accident, natural/man-made calamity, fire or theft. |
Comprehensive Car Insurance Policy Inclusions and Exclusions
The comprehensive car insurance policy offers a wider coverage than a third party liability policy. Besides third party liabilities, it also offers protection against the damages incurred by the insured’s car.
Inclusions | Exclusions |
Bodily Injury/Death of a Third Party The policyholder can claim compensation for the expenses incurred while compensating for injury/death of a third party. | Wear And Tear Of Car (Depreciation) The insurance company will not bear the depreciation cost of the car or its parts. |
Third Party Property Damage The insurance company will offer indemnification of up to Rs. 7.5 lakh on behalf of the policyholder for third party property damage. | Damage Incurred to Tyres And Tubes Damages incurred exclusively to tyres and tubes of the insured’s car are not covered under this policy. |
Damage of Insured’s Car The insurance company will pay for the expenses incurred while repairing the insured’s car in case of damages incurred in a road accident, self-ignition, explosion or due to a natural or man-made calamity. | Electrical/Mechanical Damage of Insured’s Car Any damage incurred to the insured’s car engine parts, differential parts and gearbox are not covered under the policy. |
Theft of Insured’s Car The policyholder will get compensation for the loss/theft of the insured car. | Contractual Liabilities The company will not pay for liabilities assumed by the policyholder on behalf of someone else. |
Standalone Own Damage Car Insurance Policy Inclusions and Exclusions
A standalone own damage car insurance policy offers insurance only for damages incurred by the insured’s car. No third party liability is covered under this cover.
Inclusions | Exclusions |
Damage Incurred by Insured’s Car in Accident The insurance company will compensate for the damages incurred by the insured’s car in a road accident. | Wear And Tear of Car The insurance company will not pay for the depreciation cost of the car during claim settlement. |
Damage Incurred Due to Calamities The insurance company will pay for the damages incurred by the insured’s car due to natural/man-made calamities. | Electrical/Mechanical Damage of the Car Any damage related to the engine as well as gearbox of the insured’s car is not covered under the policy. |
Theft of Insured’s Car The policyholder will get compensation in case of theft of the insured’s car. | Tyres And Tubes The policy does not cover damages incurred exclusively to the tyres and tubes of the insured’s car. |
Damage Incurred Due to Fire/Explosion The insurance company will pay for the damages incurred to the insured’s car due to self-ignition or explosion/fire. | Contractual Liabilities The policy does not cover any liability taken on behalf of someone else. |
Car Insurance Add-on Covers
Car insurance add-ons are the extra covers which help to enhance the coverage of a comprehensive car insurance policy and a standalone own-damage car insurance policy.
You can in detail about different types of car insurance add-ons here.
For further reading:
What is the Cost of Third Party Car Insurance?
Disclaimer: This article is issued in 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.
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