What Are The Inclusions And Exclusions In A Third Party Car Insurance Policy

If you are a car owner, you may have sourced all the options to find the best insurance policy for your car. When you are buying a car insurance policy, one of the most important things you must know, apart from the premium amount, is the inclusions and exclusions of the policy.

The inclusions of car insurance depend mainly on the type of car insurance you purchase. If you have a third-party policy, which is a mandatory requirement for all car owners, you get coverage for the damages incurred to the third-party’s car, property and physical injuries.

But, if you have a comprehensive car insurance policy, you get complete protection against both third-party liabilities as well as damages to your car. 

Let’s look at the inclusions and exclusions of a comprehensive policy


1. Damages to your car

If you get involved in an accident that causes damages to your vehicle, you must immediately notify your insurance company to claim compensation for repairs. Typically, most insurers provide a time limit of 48 hours to inform about the accident. Failure to report, your claim may be rejected.

Upon damage, you can get your car towed to any of the network garages (if you have the add-on cover) or you can get your vehicle repaired at any of the local garages. After verifying the estimated cost and inspection of the car, the insurer will release the claim amount.

2. Natural Calamities

Natural calamities like earthquakes, landslides, the flood can cause immense damage to the properties. Under comprehensive car insurance coverage, you get full protection against damages caused to the car due to natural calamities.

3. Personal Accident Cover

Typically, most insurers offer personal accident cover as an add-on with a comprehensive policy. The personal accident cover provides financial protection for you and your family if you get injured in the accident. 

4. Human Disasters

Often, during man-made conditions like riots, and strikes, personal properties like cars can get damaged. Comprehensive insurance can help you get coverage against such damages.

5. Car Theft

If your car gets stolen, you can claim compensation equal to the IDV (Insured Declared Value) as specified in the policy documents.

6. Property Damage

If you get involved in an accident that causes damage to anybody’s property, you can file for a claim to compensate for the losses suffered by them.


No matter, if you purchase comprehensive car insurance online or offline, your policy will surely have some exclusions. Car insurance exclusions are the risks that are not covered in your policy. The things that are not covered under the plan are always mentioned in the policy document.

The exclusions of a car insurance policy vary from insurer to insurer. But, some of the standard exclusions include:

  • Damages occurred to the car if the car was used for illegal or malicious purpose
  • Loss suffered because the driver was underaged, or was found guilty of driving without a valid license
  • Damages to the driver, if the driver was found driving under the influence of alcohol, drugs or any other intoxicating substance
  • Damages to the car due to acts of nuclear activities, war or terror attacks
  • Any damages that occur to the car’s engine due to oil leakage are not covered under the car insurance policy
  • Damages suffered due to the breakdown of mechanical or electrical parts
  • Damages to the car due to damage to the tires or tubes
  • If any of the accessories get damaged due to an accident, the insurer is not liable to pay for it


Exclusions that can be covered with Add-ons

Some risks may not be covered under your regular comprehensive car policy, but you can get protection against it by purchasing an add-on cover. But, remember, the add-ons come with an additional premium. So, the more number of add-ons you buy higher will be the premium.

Generally, when you get your car repair, the insurers do not pay the full claim amount; they deduct the depreciation. However, you can claim total compensation if you have a zero-deprecation cover.

Most insurance companies in India do not cover damages to the engines. But, if you purchase an engine protection cover, you can get coverage for your mechanical breakdown of the engine.

The passengers in the car or a hired driver are not covered under an ordinary car insurance policy. But, if you have an extended accident add-on cover, you can protect the co-passengers.

When you are buying comprehensive car insurance, make sure that you review your policy documents carefully to know about the inclusions and the exclusions. This will help you avoid confusion at the time of filing a claim under third party car insurance and making the process smooth and hassle-free.

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