Netizens have voiced anguish and frustration over the denial of a motor insurance accident claim by a reputed firm. A Twitter user who goes by the name Rajiv Mehta (tweets @rajivmehta19) has shared a letter from HDFC Ergo rejecting an accident claim. The letter shared on the micro-blogging platform indicates the reason given by the company that injury sustained while riding a motorcycle above 150 cc engine is excluded from the terms and conditions of policy coverage.
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“We would like to draw your attention. Your claim has been declined due to the below mentioned reason which is the basis for disallowing the claim, an extract of which is mentioned below for your ready reference. As per the submitted documents, insured was dead on 19/04/2020 due to head injury. Insured was riding 346 cc bike and as per policy terms and conditions claim is not payable under general exclusion clause 8, for bodily injury sustained while or as a result of driving motorcycle or motor scooter above 150 cc,” the letter stated.
Reason Given by #HDFC for declining the Accidental Claim, Always Check the terms/policy conditions before blindly buying any insurance.#Insurance regulator should look into this . Fine print ……. pic.twitter.com/pWYrduiIXk
— Rajiv Mehta (@rajivmehta19) October 16, 2021
While CNBC-TV18 couldn’t independently verify the letter, the particular instance surely highlights the importance of insurance awareness.
When it comes to motor insurance policies, the terms and conditions vary from one policy to another. That said, some exclusions are common and it is necessary to go through the policy documents well in advance before buying to avoid any surprises during the claim settlement process.
A motor insurance policy protects the vehicle owner against the covered financial losses due to damage/theft of the insured vehicle as per applicable terms and conditions. In India, the nature of vehicles has been categorised in 3 different ways i.e. two-wheeler, private and commercial vehicles. Exclusions, on the other hand, are specific factors/situations that are not covered under the insurance plan.
In a conversation with CNBC-TV18, Aftab Chaz, Associate Director — Digital Sales, Elephant.in said that some of the common exclusions are breakdowns, consequential loss wear and tear, etc.
Elaborating further, Chaz said that no policy claims are entertained without a valid license.
"Also, if any accident happens and the rider is under the influence of alcohol or drugs, that policy will not be covered under the insurance policy. Breakdown of the vehicle, due to aging mechanical and electrical breakdown are also not covered. Damages due to external factors like war, terror attacks are also not covered under a two-wheeler motor insurance policy,” he said.
Additionally, two-wheeler insurance does not cover damage or loss suffered as a result of speeding. Damage or loss of vehicles when someone else is riding the policyholder's bike is also not covered.
"If the owner of the vehicle meets with an accident, the insurance company will cover the cost of repairs, but not if the bike was lent to someone else," according to Bankbazaar.
It's also important to note that in case the user loses the keys of his/her two-wheeler or forgets them on the two-wheeler, and, as a result, the vehicle is stolen, the insurance company will not be liable to consider the loss.
While the above are some of the common exclusions, the consumer should know the company-specific exclusions too when it comes to buying a policy. Every consumer need is different and hence the inclusion and exclusion might even vary for every consumer.
Disclaimer:
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(Edited by : Ajay Vaishnav)
First Published: Oct 20, 2021 6:20 PM IST
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