Motor Insurance Exclusions

Damage Caused To The Vehicle If The Driver Is Under The Influence Of Alcohol Or Drugs

You are liable to face legal repercussions under the Motor Vehicles Act if you are caught driving a vehicle under the influence of alcohol or any narcotic drugs. Any damage caused to your vehicle during the course of such driving will not be covered by the insurance policy.

For example - Kushal took his bike out for a ride under the influence of alcohol. He got into an accident that damaged the bike’s handles, lights, and body. He is not eligible to receive the claim amount under his insurance policy because he was under the influence of alcohol.

Damage Caused If The Vehicle Is Being Used For Any Other Purpose

If you use the vehicle for any other purpose, other than the one specified in the insurance certificate, and it gets damaged as a result of this use - you aren’t eligible to receive the claim amount. For instance, a private car is used for commercial purposes or racing, etc.

Violation Of Vehicle Manufacturer’s Guidelines

Each vehicle comes with manual information about the vehicle and guidelines that should be followed by the user. For instance, there may be instructions about how to jump-start your car, how you should handle overheating, etc. If you use any method beyond these guidelines and as a result, violate them- any damage faced by the vehicle will not be covered under the policy.

Damage Caused By The War

Any damage caused to the vehicle due to war, terror attack, civil war, radiation, nuclear material/weapons, etc., is not included within the scope of the policy coverage.

Damage Caused Beyond The Specified Geographical Area

An insurance policy may specify a certain geographical area within which the coverage will be in force. Any driving accident that happens beyond these areas will not be covered under the policy.

If you plan to take your vehicle outside India, then you would need to separately cover the risks with an insurance company.

For example - Rani decides to go on a road trip to Thailand. She gets into an accident on the way, which causes substantial damage to her car. She raises a claim for the same. Unfortunately, the accident happened outside India- therefore she will not be eligible to receive the claim amount.

Any Accident That Happens After The Insurance Policy Expires

A motor insurance policy is a mandatory requirement, as stated by the Motor Vehicles Act, and needs to be renewed within the specified due date. If any damage or loss occurred, even if covered under the old policy, happens after the policy expires- it will not be covered.

For example - Kumar purchased a scooter in March 2021. He also bought an insurance plan for the same, the renewal due date of which fell in March 2022. He failed to pay the premium and renew the policy, which caused the old policy to expire. Unfortunately, he got into a road accident in April 2022. His scooter faced substantial damage because of the same. However, he is not eligible to raise a claim and receive the cover amount from the insurer because of his expired policy. He may also face legal repercussions under the Motor Vehicles Act for driving without insurance.