Car Insurance Whats Claimed And Whats Not?

Posted Date: Thu Jul 2016

So, you've made the smart choice of finally getting your car insured. That sounds great, but now you may be asking yourself, what kinds of insurance plans are available and what sorts of damages are covered under the insurance plan and what things aren't covered? Fear not as we have an aim of keeping our readers well informed. Hence this write-up will deal with the above mentioned things which will make it easier for you to gain knowledge about car insurance plans.

There are basically two main types of car insurance plans available in Pakistan.

1)Third Party Insurance
2)Comprehensive Insurance

Firstly, third party insurance is the minimum legal cover needed for an insurance claim and is usually baked into comprehensive insurance. Third party liability means that if you have hit someone else on the road and it’s proven that it’s your mistake then your insurance company will reimburse/claim damages of the other person with respect to property, injury or death as well as your own vehicle. However it’s subject to a cap of a limited amount.

Coming towards comprehensive insurance, this type of insurance covers everything from self damage, arson, fire or theft and accidents etc and this is the recommended level of insurance that consumers should get for their automobiles. In the further lines below, we shall discuss what's covered by comprehensive car insurance plans. Keep in mind that this is a general discussion and the facts mentioned here-in apply to almost all of the insurance providers in Pakistan with slight variations but this should give you a general idea of the factors that investing in an insurance plan will safegaurd you against.

Accidents: Whether you have run into an accident by your own mistake or someone else has bumped into your vehicle, you'll be covered both ways and your insurance company will cover the damage for your vehicle as well as the other vehicle if it's your fault.

Damage: This insures your automobile against many kinds of hazards such as earthquake, flood, fire, arsons and riots etc.

Theft and Snatching: New cars and common makes and models are more prone to theft or snatching. Having a comprehensive insurance means you're safe from such unexpected threats as well.

Terrorism: Car insurance providers in Pakistan also offer optional coverage against acts of terrorism such as bomb blasts, indiscriminate firing etc.

Medical: In the case of bodily injury during an accident, some insurance companies offer medical expenses upto a certain amount to be claimed.

Transit: If you're transporting your vehicle from one place to another via air, rail, road or elevators and any damage occurs during transit then it'll also be covered under the insurance.
Another thing to be kept in mind is that the insurance company will physically check your car for any damage before insuring it and any dents or issues prior to obtaining insurance will not be claimed under the insurance plan in any case.

Now having mentioned the things that are covered under comprehensive car insurance, let's talk about the factors that aren't considered while you apply for a claim.

Wear and Tear: The everyday wear and tear of mechanical and perishable parts e.g battery and tyres are not covered under insurance claims unless they are damaged at the same time at which the car was damaged itself.

Mechanical/Electrical Breakdown: In case of any fault during the usage of the car or any electrical components malfunctioning such as indicator lights or wipers aren't a part of insurance claims.

Out of bounds: Any loss occuring outside the limits of a geographically assigned boundary at the time of insurance is not covered by your insurance provider.

Breach of trust: Any loss occuring due to theft or criminal act of the insured vehicle's driver or other known entity is not covered.
 
Coming to the conclusion, we've tried our best to inform our readers about all the things that a car insurance policy safegaurds you against and the things that you should keep in mind that won't be covered under your insurance claims. We hope that consumers benefit from this and make the smart choice of opting to insure their cars as it serves as an excellent way to safegaurd your investment.