When you buy car insurance for your vehicle, you are not just getting financial coverage, but mental peace as well. You assume that you are completely protected from unforeseen expenses and liabilities in case of a mishap. But most of us make the mistake of forgetting about exclusions – the type of expenses that your insurance policy would not cover in any case.

These exclusions are pre-decided by the insurance company and are explicitly mentioned in your policy document. In case you have not read the fine print of your policy, we will take you through some of the typical exclusions in motor insurance to give you an idea of the expenses that you may have to bear yourself.

What is not covered in car insurance?

Though exclusions vary from insurer to insurer and plan to plan, mentioned below are some general expenses that are mostly not reimbursed by insurers:

• Consequential losses: Your insurance policy would not pay for consequential losses or damages which are a consequence and not a direct outcome of an uncertain event. So, suppose an accident or collision causes an engine oil leak in your car. The cost of repairing the leak would be covered by your insurance. But that oil leak led to engine seizure after a few days. This engine seizure would be considered a consequential damage and would not be covered.

• Wear and tear, mechanical or electrical breakdown, failures, or breakages: Any non-accidental damage to your car or failure or malfunction of any part won’t be covered by your motor insurance policy.

• Depreciation: Since wear and tear is excluded in the policy, the loss in the value of your car over the time due to this wear and tear (also known as depreciation) is also not covered under a car insurance policy.

Besides these specific expenses that are excluded, you should also know about certain situations in which the insurer would not be liable to extend the policy benefits to you as promised under the insurance plan. They are as follows:

• If the insured vehicle is being used outside the geographical area specified in the policy (usually outside India).

• If any accidental loss or damage was suffered after the insured or any other person, with the knowledge and consent of the insured, was driving the car under the influence of alcohol or drugs or any other intoxicating substance.

• If the damage, theft, or loss was due to incidents related to the war, invasion, foreign enemy acts, mutiny, rebellion, etc.

• If the car is being used otherwise than in accordance with the ‘limitations as to use’ specified in the policy. For instance, if a personal car is being used for commercial purpose, then the insurer would not reimburse for any accidental losses.

• If the driver of the vehicle at the time of accident is driving without a valid licence

• If there was an attempt for a deliberate accidental loss.

• If the policy is not in force due to a delay in renewal. The vehicle insurance policy is usually a yearly contract and has to be renewed without a break. If the damage or loss happens post the expiry and before the next renewal, the loss would not be covered.

Conclusion: Not paying attention to the exclusions of the policy can prove to be a costly affair and can lead to rejection of claims later. In order to avoid any hassles, go through the policy in detail to understand the gaps. You can also buy some add-on covers to get wider coverage from your policy and include expenses which were otherwise not covered.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.