Kolkata: The Motor Vehicles Act regulates different aspects of driving a vehicle in India. One of its sections — precisely section 145 — directs the car owner to buy motor vehicle insurance policy before one starts driving a vehicle. According to the rules, a vehicle owner or policyholder must buy at the minimum a ‘third party liability’ motor insurance cover. It is the basic insurance plan that the vehicle owner must buy. This shield is assures the vehicle owner protection against financial loss arising from accidents which can cause injuries to other people or damage the vehicle of another person and also damage the vehicle of the policy purchaser himself/herself.
While it is quite clear that one has to buy such a policy before driving a car, one must keep in mind that there are situations when a claim will be turned down by the insurance company. Therefore, one should know the situations what action of commission and omission can lead to rejection of the claim. Read on to know what these are.
Driving without a license
Driving without a valid license is one of the cardinal sins that one can do. Suppose someone who does not have a valid license drives a car and the vehicle is involved with an accident. Apart from the police harassment, be absolutely sure that no claim for any sort of compensation related to the driving will be entertained. This also brings us to a precise point of having an appropriate license. For example, if a person has a license for a personal vehicle but drives a commercial vehicle and gets involved with an accident, he/she will not be able to get any compensation for any claim.
Claim is fraudulent
If one makes a claim and, on inspection, the claim is found to be fraudulent, there is no chance of getting any insurance cover at all. There is another situation when a claim is sure to be rejected. Suppose a vehicle has been bought for personal use but the owner is running it for commercial use which is illegal. If there is a claim during such an unauthorised use, there is no chance of securing an insurance claim.
Driving under intoxication
Any claim that is made in a situation when the driver of the vehicle was under the influence of any type of intoxication, is sure to be rejected. It is not legal to drive a vehicle after consumption of alcohol. If the police issues an accident report which states the intoxicated condition of the driver — he/she might or might not be the owner of the vehicle — no insurance company will pay a penny.
File claim quickly, renew policy on time
One should file an insurance claim as soon as possible after an accident. It is necessary that one knows about the time window allowed to file a claim and one must strictly adhere to it. It is also necessary that one should renew the insurance every year and within the time it expires.
If you start driving a vehicle in India, buying a motor insurance is a legal necessity and is non-negotiable. However, you must not drive into the following situations when any claim you make is sure to be rejected. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
