There are many limitations to your standard motor fleet insurance policy. You should not think that a motor fleet insurance policy means zero-expenditure. Even a comprehensive insurance policy does not mean zero out-of-pocket expenditure.

Certain conditions when your motor fleet insurance papers will not help you.

  • Wear and tear on your vehicles
  • If your vehicle is driven without a valid driving license
  • If your policy has expired or has not been renewed, then any damage to the vehicle after expiry and before your next renewal, is not paid
  • If you are driving under influence of alcohol or drugs
  • Any other person driving the vehicle other than the person mentioned in the driver’s clause
  • Engine damage due to oil leakage
  • Mechanical parts wastage or replacement cost like brakes, wipers, head lights and tail lights, steering
  • Electrical parts wastage like battery cables, alternator, sparking in ignition switch
  • Partial or full value of tires and tubes are reimbursed, only if the insured vehicle gets damaged
  • If you violate your automobile manufacturer’s guidelines on use of vehicle
  • If the commercial vehicle is carrying any hazardous chemicals
  • If the commercial vehicle is being transported, like during sea voyage or air passage
  • Damage to vehicle under contractual liability of the owner. For example, you have pledged your car against a loan or given it to third party on rent, is out of your policy scope
  • Loss or damage due to natural calamities or war
  • Any damage to your vehicle which is outside the geographical area specified in your insurance documents
  • Rejected claims which are not taken to the court within 12 months

Click here to know what is covered under Motor Fleet Insurance

Following are not covered in your standard insurance policy but can be purchased by paying extra-premium:

  1. Consequential loss like if you have an engine breakdown driving in rain, water-logging, floods, under engine protection cover
  2. Depreciation coverage for wear and tear of your vehicle. The depreciation value of your vehicle will not be deducted at the time of claim
  3. Repairing costs of rubber parts, fiberglass, and plastic parts under depreciation coverage only

Case on Motor Fleet Insurance Exclusions

Mr. Ramesh is a driver employed with motor company. He has a valid driving license, and the car papers are in order. He was in Chennai for an outstation consignment to be delivered. Excessive rains in the city caused flooding and paralyzed the engine of his vehicle while it was parked at a residential parking lot. There can be multiple scenarios to make a claim:

  1. The damage is recoverable if and only if the motor company has an add-on cover for water logging, or rains.
  2. If the motor company is delivering a consignment on a contractual basis and not routine assignments, motor company is not entitled to a claim.
  3. If it is proved that Ramesh knowingly ventured into an area where water logging was heavy and could have avoided the route, claim will not be settled.
  4. If the policy had specifically mentioned any geographical limitations, motor company is not entitled to a claim.
  5. Ramesh should not be under influence of alcohol at the time of the incident.

In another scenario, if the loss is minimal like damage to tires, windscreen, or electrical failure.

  1. Claim depend on the clause of the add-on cover for protection against rains or water logging.
  2. Even under add-on cover, the standard terms and conditions will apply. For example, driver should not be under influence of alcohol or, has deliberated an accident, which could have been avoided by taking another route or parking the vehicle safely.
  3. In standard or comprehensive insurance policy, no claim can be made.
  4. Even if there was no rain, these damages are not included in your standard insurance policy. Only partial reimbursements can be made with depreciation cover.

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