Vehicle Insurance is mandatory in India under the Motor Vehicle Act, 1988. Per the act, all vehicle owners must invest in third-party limited liability insurance. However, third-party plans offer limited coverage. If you wish to obtain maximum coverage, you must invest in a comprehensive car insurance plan. With comprehensive insurance plans, you can also purchase various add-on riders, one of which is the personal belongings cover. Let us understand what is covered under the loss of personal belongings rider in this article.

The loss of personal belongings in car insurance rider covers the cost of personal belongings you may have left in your car when your car gets damaged or stolen. Assume that you have left your expensive laptop in your vehicle. If the car and the laptop are damaged during riots or terroristic activities, or if your car with the laptop gets stolen, the insurer covers the laptop repair or replacement costs. You can get coverage up to the sum insured with the loss of personal belongings rider. This add-on reduces your financial burden, as repairing or replacing electronics can be expensive.

Note that you cannot purchase the loss of personal belongings or other add-on riders with third-party plans. Thus, if you lose any items in your car during an accident, the insurer will cover the costs of damages endured by your and third-party vehicles, but not for any possessions in your car, destroyed or damaged in an accident.

Insurers may reject your claim for loss of personal belongings cover in the following cases.

• Loss or damage arising due to the policyholder’s negligence, such as not locking car doors or windows
• If the car is a borrowed property
• If the policyholder fails to report the theft within 24 hours
• Losses incurred due to everyday wear and tear, mechanical or electric failure
• Articles owned by someone other than the policyholder
• Theft of important documents
• Items left in the car overnight

The above exclusions may differ, so you must read the detailed list of inclusions and exclusions mentioned in the policy documents.

To claim the loss of personal belongings add-on insurance, follow these steps:

1. Inform your insurance provider immediately. Most insurance companies expect you to report the event within 24 hours.
2. File a police report and obtain a copy as you need to submit it when you file your claim.
3. Ensure you check and submit all the required documents, as not doing so can lead to rejected claims.

Repairing any damage endured by your car, especially after an accident or collision, can cost a lot of money. Therefore, it is best to invest in an all-encompassing comprehensive car insurance policy. Comprehensive car insurance plans provide maximum coverage and are also customisable. They cover you against accidents, third-party liabilities, vehicle damage, loss, theft, and more. Insurers also offer no-claims bonus benefits that reduce your insurance premiums, with discounts of up to 50% on insurance premiums for five consecutive claim-free years.