There are major chances of death or bodily injuries or disabilities due to a car accident. The chances of a public/ private property getting damaged in this act are even higher. But, thank the Almighty. There is something called as 'Third Party Insurance' that acts as a savior.
Not sure what all is linked to the third party liability insurance? Here's a quick 'dekho' of third party insurance that says it all.
What is Covered Under Car Insurance.
Natural Disasters
Floods, earthquakes, cyclones, etc. are covered under car insurance.
Man made disaster
Car insurance covers fire, terrorism, riot, strike, and accidents, house breaking, theft, burglary, etc.
Third party liability
Compensates for injury or damages to a person or property caused by you to another person in a car accident is covered under car insurance policy.
Personal Accident cover for owner-driver
Coverage of Rs. 15-lakhs for the owner-driver of the car and optional personal accident cover for passengers is covered under car insurance.
What is Not Covered Under Car Insurance
Drink and drive
Damages caused to the car if you or anyone else was caught driving under the influence of alcohol at the time of an accident is not covered under car insurance policy.
Staged accidents
Deliberate accidental loss is not covered under car insurance policy. If it is proven that the accident was entirely staged/preplanned, the claim would be rejected.
Illegal Activity
Illegal activities like driving on the wrong side of the road or without a valid license, or if the car’s driven by an underage person will not be covered under car Insurance policy.
Commercial Activity
Driving your private vehicle for commercial purpose and vice versa will be an exclusion under car insurance policy.
Other reasons
An expired policy, consequential damages, contractual liability, electrical and mechanical failure, regular wear and tear, and driving outside geographical limits are other reasons where claim will be rejected under car insurance policy.
