Motor Fleet Insurance

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When you want to insure more than one vehicle, a motor fleet insurance policy is a great choice. It is one policy that provides insurance cover against loss or damage to all your vehicles.

However, it is important to remember that your standard motor fleet insurance policy has some limitations. Here we will get to know about the exclusions of the motor fleet insurance policy.

What a motor fleet insurance does not cover

A motor fleet insurance policy typically excludes the following conditions:

  • Regular wear and tear on your vehicles
  • Driving your vehicle without a valid license
  • Damage to the vehicle after your policy has expired and before renewal
  • Any damage resulting from driving under the influence of alcohol or drugs
  • Damage to vehicle when anyone other than the person mentioned in the policy was driving it
  • Engine damage due to oil leakage
  • Mechanical parts’ wear and tear or replacement cost like brakes, wipers, headlights and taillights, steering, etc.
  • Electrical part wastage like battery cables, alternator, sparking in the ignition switch
  • The partial or full value of tires and tubes unless the damage is to the insured vehicle
  • Violation of the automobile manufacturer’s guidelines on the use of the vehicle
  • Carrying hazardous chemicals in a commercial vehicle
  • Damage to a commercial vehicle during its transportation, like during a sea voyage or air passage
  • Any damage to a vehicle under the owner’s contractual liability. For example, if you have pledged your car against a loan or given it to a third party on rent, this puts it out of the scope of your policy.
  • Loss or damage due to natural calamities or war
  • Damage to your vehicle outside the geographical area specified in your insurance documents
  • Rejected claims that you do not take to court within 12 months.

Click here to know what is covered under Motor Fleet Insurance

Add-ons to your insurance

Although your motor fleet insurance might not cover some items, you have the option of adding these on. Indeed, payment of an extra premium can get you coverage for:

  1. Consequential loss: For instance, if your engine breaks down while driving in the rain or due to water-logging or floods, you are eligible for engine protection cover.
  2. Depreciation coverage for wear and tear of your vehicle: This means that the insurer will not deduct the depreciation value of your vehicle at the time of the claim.
  3. Repair costs for rubber parts, fibreglass, and plastic parts under depreciation coverage only.

Case study: Situations where exclusions might apply to motor fleet insurance

Mr. Ramesh works as a driver with a motor company. He has a valid driving license, and the car papers are in order. He was in Chennai to deliver an outstation consignment. Excessive rains in the city caused flooding. Consequently, the engine of his vehicle broke down at a residential parking lot, where Mr. Ramesh had parked.

If the motor company was delivering a consignment on a contractual basis and not as a routine assignment, it cannot make a claim. Also, the insurance provider might reject the claim if it finds that Mr. Ramesh knowingly ventured into an area with heavy water logging when an alternative route was available. Additionally, if the policy specified geographical limitations, the motor company cannot successfully make a claim. Finally, it is important that Mr. Ramesh was not under the influence of alcohol at the time of the incident.

If the loss is minimal, like damage to tires, windscreen, or electrical failure, the company can make a claim if an add-on cover is available for protection against rains or waterlogging. But in a standard or comprehensive insurance policy, the company cannot make a claim.

Standard insurance policies do not include such damages. Only partial reimbursements are possible with depreciation cover.