Inclusions/Exclusions of Motor Insurance Policy

Get Car Insurance starting at only ₹2,094/year #
Processing

Apart from being a mandatory purchase, a motor insurance policy is an essential tool to cover a vehicle owner against an unfortunate incident on road. However, before purchasing one, you should be well aware of what a motor insurance policy covers and what it excludes. Know more about popular inclusions and exclusions in a motor insurance policy so that you do not end up paying a heavy premium without getting maximum coverage.

Read more

  • Renew policy in 2 minutes*

  • 20+ Insurers to choose

  • 51 Lakh+ Vehicles Insured

#TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

Get Car Insurance starting at only ₹2,094/year #
Looking for Car Insurance?
    Other models
    Other variants
    Select your variant
    View all variants
      Full Name
      Email
      Mobile No.
      View Prices
      Please wait..
      By clicking on “View Prices”, you agree to our Privacy Policy & Terms of Use
      Get Updates on WhatsApp
      Select Make
      Select Model
      Fuel Type
      Select variant
      Registration year
      Registration month
      Save & update
      Please wait..
      Search with another car number?

      We have found best plans for you!! Our advisor will get in touch with you soon.

      Types of Motor Insurance Coverage

      A vehicle owner can purchase a car insurance policy from an insurance company directly or through an insurance aggregator platform like Policybazaar.com. Irrespective of the insurance vendor, motor insurance in India includes two major types of coverage. These include:

      Third-Party Insurance Cover

      Third-party insurance is a mandatory insurance cover that every car owner must have in India. It covers the policyholder's legal liabilities for causing a third party's injury, death or damages to the third party’s property or vehicle by the insured car during an accident. It also provides personal accident cover to the car’s owner-driver.

      You must know that this type of insurance cover does not provide financial assistance against any damages caused to your own car.

      Comprehensive Insurance Cover

      Comprehensive insurance policy covers car owners against the theft, loss or damages sustained by the insured car due to unexpected situations, such as fire, accidents, calamities, etc. It also covers any third-party property damages, injury and death that may arise during a road accident. Moreover, you will also get personal accident cover for the owner-driver of the car under this policy.

      Thus, comprehensive insurance covers both a car owner's liability towards the insured vehicle and third-party.

      Inclusions & Exclusions in a Motor Insurance Cover

      A motor policy inclusions refer to the risks that are covered in a car insurance policy. On the other hand, policy exclusions are the risks that are not covered in a car insurance policy. Here are some popular inclusions and exclusions in a motor insurance policy:

      Inclusions of Motor Insurance:

      Third-Party Bodily Injuries

      Vehicle insurance covers bodily injuries of a third party person if caused by the insured car in a road accident. It also provides compensation to the third party in case the accident leads to disability.

      Third-Party Death

      The death of a third party caused by a road accident involving the insured car is covered under the insurance policy. The compensation amount is ascertained by the Motor Accidents Claims Tribunal.

      Third-Party Property Damages

      Third-party property damages including the third party’s vehicle are covered under the motor policy. Car insurance plans in India covers third party property damages of up to Rs 7.5 lakh.

      Natural Calamities

      Comprehensive insurance provides coverage in case any natural calamity, such as landslides, lightning, cyclones or floods, etc. causes damages to the insured car.

      Manmade Disasters

      Damages caused to the insured car due to manmade disasters, such as riots, vandalism, strikes, etc. are also covered in a comprehensive insurance policy.

      Vehicle Theft

      Vehicle theft is a common inclusion of motor insurance cover. In case an insured vehicle is stolen, the resultant loss will be covered under the comprehensive insurance policy. The insurance company will compensate an amount equal to the stolen car’s IDV or current monetary value in case it is not recovered.

      Personal Accident Cover

      A personal accident cover provides financial assistance in the event of the owner-driver’s death, bodily injuries, impairment or mutilation from an accident involving the insured car. This cover of Rs 15 lakh is mandatorily granted as part of the comprehensive policy as well as the third-party liability-only policy.

      Fire

      Car insurance policy also cover damages sustained by the insured car due to fire, explosion, and self-ignition.

      Accidents

      In case the insured car gets damaged in a road accident, the resultant loss or damages will be covered by the insurance company under the motor policy.

      Exclusions of Motor Insurance:

      Damage Under Intoxication

      Drunk driving is a popular exclusion of motor insurance. If the insured vehicle is damaged in a road accident while the driver had consumed alcohol or any other intoxicating substance, then the insurance company will not pay for the incurred damages.

      Driving Without a Valid Driving License

      If a car sustains damages while it was being driven without a valid driving license, then the insurance company will not provide financial cover against such damages.

      Claim on a Lapsed Policy

      A motor policy is a contract that has to be renewed yearly, except for new cars. When the policy is not renewed before the due date, it expires and can also lapse. In the case of a lapsed/expired insurance policy, the car owner cannot claim any financial aid from the insurance company.

      Damage Outside India

      Any accidental damage or loss sustained by the insured car outside India will not be covered by the insurance company. Thus, if a vehicle owner is driving outside India, he/she will lose his/her right to claim damage repair expenses under the policy.

      Wear and Tear

      An insurance policy is unlikely to cover wear and tear that has occurred to the vehicle over time. Insurance companies only cover unexpected losses and not something caused by gradual deterioration or everyday use.

      Mechanical/Electrical Damage

      Mechanical or electrical breakdown of a vehicle is also not covered under a standard motor policy.

      Consequential Losses

      Similarly, consequential losses (such as damages due to towing of the car in a road accident), which are a result of a certain action by the car owner or third party, also come under exclusions of motor insurance.

      Tyres and Tubes

      Damage to the tyres and tubes of the insured car is only covered when the vehicle has met with an accident.

      Add-on Covers Available in Motor Insurance

      The coverage of a motor insurance policy can be extended by purchasing certain add-on covers. However, buying an add-on will also increase the premium of the insurance policy. Some of these common car insurance add-ons include:

      • Zero depreciation cover
      • Return to invoice cover
      • Engine protection cover
      • Tyre protection cover
      • Passenger cover
      • Consumables cover

      Wrapping Up!

      Whenever you purchase insurance for your vehicle, make sure you have gone through the policy documents carefully. Understand all the inclusions and exclusions so that you do not face any trouble while claiming your vehicle’s insurance policy.

      Find similar car insurance quotes by body type

      Hatchback Sedan SUV MUV
      Search
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
       Why buy from policybazaar

      Car insurance articles

      Recent Articles
      Popular Articles
      Things You Need to Know About SUV Car Insurance

      07 Dec 2023

      If you are planning to buy an SUV car, it is also essential that
      Read more
      All You Need To Know About Hatchback Car Insurance

      05 Dec 2023

      Investing in a hatchback can be a great option if you are looking
      Read more
      Does Your Car Insurance Cover Damages By Rat Attack?

      29 Nov 2023

      Considering the population of rats in our country, it is common to
      Read more
      All You Need to Know About Standalone OD Insurance

      29 Sep 2023

      The concept of Own Damage(OD) is not a new one. For those of us
      Read more
      Your Guide to Reducing the Chances of a Rejected Motor Insurance claim

      29 Sep 2023

      Filing a motor insurance claim can be a complex process, and
      Read more
      Check Vehicle/Car Insurance Status Online on Parivahan Sewa, Vahan, IIB & RTO
      It doesn’t matter if you are an excellent driver or take your car out only once in a few months, your car must be
      Read more
      How to Find Car Insurance Details by Registration Number?
      As a car owner, it is mandatory to have a car insurance policy under the Motor Vehicles Act 1988. However
      Read more
      Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
      Losing your car insurance documents can be daunting. In such a state of affairs, the first thing that comes to your
      Read more
      How to Transfer Car Insurance Policy?
      An integral part of selling a car for both the buyer and the seller is ensuring a successful car insurance transfer
      Read more
      Comprehensive Insurance Vs Third Party Insurance
      A comprehensive car insurance policy offers protection against third-party liabilities and own damages sustained by
      Read more

      top
      View Plans
      Close
      Download the Policybazaar app
      to manage all your insurance needs.
      INSTALL