You have just bought a brand new car and availed a comprehensive car insurance plan to cover it. Your mind is free and this shows in your driving. But there’s a problem. Road accidents are increasing every day. In India, more than 1,50,000 citizens are killed each year in road accidents. This is a whopping 400 deaths a day.
PM Narendra Modi is taking road accidents very seriously. A Motor Vehicles (Amendment) Bill was introduced in 2016, which imposes harsh penalties on traffic offences. Vehicle manufacturers must add safety features, to make sure fatalities are reduced in road accidents.
The number of cars are increasing on roads. Traffic jams and air pollution are not the only problems. The number of fire incidents is also going up. Yes, your car can catch fire and be completely destroyed.
A comprehensive car insurance plan covers you, if the car is destroyed in a fire. But, will the insurer settle the claims. Want to know more on car insurance and accident plans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
Call your insurer immediately and also report the matter to the Police. The insurer will conduct a spot survey, which helps in an early claim settlement. You will have to submit the FIR report, which gives in detail the cause of the accident/fire incident. The insurer will use this data, for the investigation.
While third-party motor insurance covers damage to a third party (another's persons) car/property, if your car collides with another person's car/property, you are not covered for damage to your car. A Comprehensive car insurance plan pays the repair costs for your damaged car and also for injuries suffered in the accident. It also pays up, if your car is destroyed in a fire.
So when can you make a claim on your comprehensive car insurance plan, in case of a fire? According to rules, fire is clearly defined as actual ignition of the car with flames visible. Damage due to overheating or short-circuiting is not considered as an actual fire.
If you can show that the damage to your car in a fire, is caused because of internal or external means, then the insurer will honor the claim. But, if you set fire to the car intentionally, the claim will not be honoured.
Your car might catch fire, if there is a short-circuit or a wiring defect. The damage due to this fire, is covered under the comprehensive car insurance plan. If parts of your car or the wiring are damaged and there is no fire, the insurer will not cover this damage.
If miscreants set fire to your car in a riot and your car is completely burnt, the comprehensive car insurance plan, will settle the claim. You will be paid the car value minus the deductible.
If your car catches fire because of a mechanical defect like oil/fuel leakage or the overheating of the car engine, the insurer will not settle such a claim. You have fitted additional accessories, whose fitment might not be supported by the battery, which causes sparks from the battery, resulting in a fire. The insurer might not settle the claim.
You have installed/replaced the CNG gas kit or the air conditioner which results in a fire, or the sparks from a tear in the electric wiring systems causes a fire… The insurer might not settle this claim.
You have tampered with the electrical wiring system and fitted extra accessories like a fog lamp or an alarm, which results in a fire and damages your car. The insurer might not settle this claim. Be Wise, Get Rich.
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