Most common #7 exclusions in a car insurance policy that you must keep in mind

When you buy a car insurance policy, which is mandatory by the way, you believe that you are covered against all odds. Since you have paid a hefty premium you get the notion that your insurance policy would cover you for all the possible contingencies which might strike. Right?


You should read the fine print of your car insurance policy. While it is true that your car insurance policy provides a comprehensive cover, there are some specific instances which are not covered. Surprised? Don’t be. There are limitations on your insurance coverage which are called exclusions and you should pay attention to them to prevent future surprises. To make your work easier, here are 7 common exclusions which you would find in all car insurance policies –

#1 Driving under the influence of alcohol and/or drugs

How many times have you been warned not to drink and drive? Even if you escape the notice of the police, you cannot escape the rejection of your claim in case of any consequential accidents. Accidents faced when driving under the influence of alcohol and/or drugs are excluded from coverage. Since you are committing a legal offence, don’t expect your insurance policy to pay for your crimes.

#2 Driving without a valid driving license

A driving license is mandatory to drive a vehicle, right? Though all of you know the rule, it is ignored by many. The consequence – if you face any accident and claim for it, you would be denied coverage. The insurance company first checks the driving license when a claim is made. If you are unable to produce a valid driving license bid goodbye to claim settlement.

#3 Accidents outside the geographical boundaries of India

Your car insurance policy, however comprehensive it might be, covers you only on Indian roads. If you are driving outside the Indian subcontinent and face an accident, any claims made would not be valid. You would have to foot the expenses yourself.

#4 Consequential losses

Though the damages suffered by your car are covered under a comprehensive car insurance policy, any consequential losses are excluded. Consequential losses are losses which result from your actions or the actions of any third party. They are not due to any natural or man-made disasters which are covered in the policy. For instance, if your car gets stuck in a water-logged area and you try to crank it up to start, you might cause a hydrostatic loss to the engine. This loss damages your engine which needs to be repaired or replaced. Since the loss was not due to flooding but due to your action to start the car, it is called consequential loss and excluded from coverage.

Read more about  How to drive safe in monsoons

#5 Normal wear and tear and depreciation

The normal wear and tear of your car and its parts are expected losses which accrue due to usage. These losses are not covered by your policy. That is why, when you make a claim, the insurer deducts the relevant depreciation from the repair costs and then pays the remainder.

Read more about 10 items to build your car emergency kit

#6 Violation of guidelines as to the usage of the vehicle

The car manufacturer lays down guidelines for the usage of the car. If you do not follow these guidelines and as a result of which you suffer damages you would not get the settlement of your claim.

#7 Claim on a lapsed policy

A car insurance policy is a one-year contract which needs annual renewals. If you do not renew the policy within the due date, the policy lapses. When the policy lapses your coverage ceases. Any claim which is made subsequent to such a lapse is, obviously, not honoured.

Read more about 5 consequences of driving without car insurance

So, these are the most common exclusions which you can find in a car insurance policy. Beware of this list and keep them in mind so that when your insurer rejects your claim on any of these grounds you wouldn’t be shocked or cry foul.

Read more about Car insurance terminologies you should know

Read more about Types of car insurance and their benefit

Which add-ons are essential for your two-wheeler insurance?

If you own a two wheeler, you would know that driving without adequate insurance is a road traffic violation. More than the legal aspect, an ideal insurance cover helps your near and dear ones to be adequately protected financially to cope with the difficult times post an accident or damage to the two wheeler.

A bike insurance helps you with a safety net in case of an unfortunate accident. You can expand this safety net by opting for handy add-ons to cover a wide range of events. While some add-ons may not be very essential, there are some which are absolutely vital to have. Interested to know which are the popular add-ons to consider? Then read on.

Zero Depreciation Cover

The insurance company usually deducts the amount towards depreciation when settling a claim. This amount has to be borne by the policyholder. However, with the zero depreciation cover, the depreciation amount will be covered by the insurance company.

The difference between having and not having a zero depreciation cover is that if you don’t have it, the insurance company will deduct the amount needed before you are compensated. But if you have it, the insurer will compensate for the full amount for repairs without deducting depreciation amount.

Read more about Zero depreciation cover

Return to Invoice Cover

This add-on can prove to be very helpful because the future is always unpredictable. With a standard comprehensive policy, in case of a theft or total loss, the amount of compensation you can claim depends on the IDV of the bike.

The RTI add-on helps cover the gap between the invoice value and the IDV of the two wheeler. So in case the two wheeler is stolen or damaged beyond repair, the add-on helps you obtain invoice value of the two wheeler (i.e. the on-road price) rather than a lower IDV.

This add-on is offered mostly in the first year of buying the bike. However, with time, the value which can be claimed under this add-on decreases because of depreciation. This add-on is still a pretty useful one to invest in and can help you immensely in an uncertain future.

Pillion-Rider Add-On

This add-on, as the name suggests, is an add-on that covers the pillion rider. In case there is an accident in which the pillion rider gets hurt or injured, he/she is not covered under a comprehensive insurance plan. This add-on will help you expand the protection to the pillion rider in addition to the driver.

Roadside Assistance Cover

This cover can be very useful if you like to travel long distances on your bike. In case your bike breaks down in the middle of a secluded place where help is not available, having this add-on can prove very beneficial.

With the RSA add-on, you can call the insurance company for assistance and they will comply by sending a mechanic or a towing van to take to the nearest garage.

It is clear that the purpose of add-ons is to provide total peace of mind to the bike owner in today’s times. By investing money and buying add-ons for your two-wheeler insurance, you can save a money and protect your bike effectively.

Read more about Everything you should  know about two-wheeler insurance policies in India

Read more 5 tricks to get best quote for bike insurance

Feel free to share your comments.

5 tips to buy life insurance

Most of you make mistakes when buying a life insurance policy. Due to these mistakes, the plans you buy do not fulfil your financial requirements completely. What do you do in such situations? You put the blame on the agent or on the insurance company which sold you the plan. Do you ever realise your mistakes?

Many don’t. There are various types of life insurance plans and each plan has a particular use. Many of you ignore this fact and buy a policy blindly. You shouldn’t. You should understand every plan’s benefits and then choose plans based on how they fulfil your requirements. Do you know how to do that?

No? Don’t worry! Here are some tips of buying different type of life insurance plans –

Term insurance

Let’s start with term insurance. Term plans are simple insurance plans which promise to pay the sum assured in case of death during the term of the plan. Thus, these plans guarantee a financial corpus for your family if you are not around. Premiums are very low and you can buy an optimal amount of coverage under term insurance

#Buying Tip

Term insurance is a universally required plan. Everyone wants to protect their families financially in case they face premature death. A term plan fulfils this need. Since premiums are low you can also afford sufficient coverage. So, have a term plan at all stages of your life to fulfil the income replacement and financial security needs.

Read more about Why term insurance is an absolute buy?

Endowment plans

Endowment plans also promise a maturity benefit which is absent in term plans. These plans give you a guaranteed fund either or maturity or in case of death during the term of the plan. Many endowment plans are offered as participating plans making them eligible for bonus declarations. These plans come with a term ranging from 10 years to 30 years and the returns are guaranteed.

#Buying Tip

Endowment plans give you a guaranteed corpus and helps in creating savings. So, you can buy these plans for creating a corpus for future use. The term of the plan should be kept in mind when buying the plan so that you get the corpus when you require it. Try and buy a participating plan to earn additional bonus which increases the benefits payable under the plan. The returns are guaranteed and if you don’t have any risk appetite, you can invest in endowment plans.

Child plans

Child plans, as the name suggests, are designed for securing your child’s financial future. These plans can be offered as traditional endowment plans or unit linked plans. What sets this plan apart from other plans is the plan’s design. There is an inbuilt waiver of premium rider under this plan. If the parent, who is also the life insured, dies before the completion of the term, the rider waives the future premiums. The plan continues but premiums are not payable. On maturity, the benefit promised is paid. Thus, a child plan ensures that the plan benefits would be paid as and when they are promised irrespective of whether the insured is alive or dead.

#Buying Tip

These plans are a must if you have children. You should buy a child plan securing your child’s future. Don’t forget to opt for an optimal sum assured which would provide the required corpus when your child needs it. Choose a term which coincides with your child’s needs so that the plan pays the funds when they are required, not before and not after such requirements.


ULIPs give you market-linked returns and, as such, are finding favour among many investors. You can invest your premium in any type of asset-class through a wide variety of funds available with ULIPs. Returns depend on the investment fund you have selected and the market performance. Since returns are linked to the market, they are inflation adjusted and yield a good corpus. There are flexible options too which let you switch between investment funds, withdraw your funds partially and also invest additional premiums through top-ups. Lastly, you get insurance coverage too where higher of the sum assured or the fund value is paid in case of death.

#Buying Tip

If you have a healthy risk appetite and want market-linked returns, ULIPs are an ideal choice. There are child ULIPs and pension ULIPs too which helps fulfil your child and retirement planning need. So, you can invest in a ULIP to get the dual benefit of insurance and investment.

Pension Plans

Pension or annuity plans help you plan for retirement. You can either buy a deferred annuity plan to create a retirement corpus or invest your retirement corpus in an immediate annuity plan to get annuity pay-outs. Pension plans also allow you to withdraw (commute) 1/3rd part of your accumulated retirement corpus tax-free. Thus, these plans create an earmarked retirement corpus for your golden years.

#Buying Tip

Buy a pension plan in your late 30s or early 40s to plan for your retirement. At that time, a deferred pension ULIP would be an ideal choice since the corpus would be inflation adjusted. Make sure to create a sufficient corpus.

The Verdict

Term plans are the most important ones and should not be ignored at any cost (Read more Term insurance are evolving here’s what’s new). After securing the need of financial security through a term plan you can choose other plans. Choose the different plans based on their requirement and their need and you would not make mistakes when buying life insurance.

Here are some reasons Why you need life insurance

Read more about Life insurance policy in India

Should You Increase IDV Of your car?

Car owners usually get confused about the car’s IDV when going for an insurance policy purchase. IDV or the Insured Declared Value is an important element when you are buying a car insurance. Hence you need to have adequate information about it to buy the best protection for your four-wheeler.

What is IDV?

IDV is the maximum amount you get from the insurer in case of a total loss or theft. This sum is decided during the initial phases of the car insurance buying process. Usually, the IDV amount is decided according to the overall market value of the car. 

For instance, if the invoice amount is Rs. 6 Lakhs, then, the below is the amount claimable as compensation if the car is stolen or damaged beyond repair:

1 – For 1st year the IDV will be 95% of this amount

2 – For every subsequent year, the IDV reduces by 10%

How it impacts premium?

The IDV value of your insurance directly impacts the premium. Higher IDV leads to a bigger premium amount, as you get more cover for your car. Similarly, a lower IDV lowers the premium payable. This is the reason why experts suggest a careful calculation of IDV by keeping the car’s age and current market value in mind.

What happens when you keep it too low?

To keep the premium amount low, many car owners try to keep IDV as low as possible. However, this won’t be advisable. Keeping the IDV too low can sometimes backfire in case of theft or total car loss. 

In the worst case scenario, a low IDV can limit you from getting effective compensation for your loss. You will end up in loss even with the insurance as the compensation might not be adequate enough.

What happens when you keep it too high?

Going too high with the IDV is also a problem. The whole point of getting an insurance for your car is protecting yourself from a loss. But a very high IDV way beyond the market value will also be a loss-making proposition for you as a car insurance policyholder. Your premium amount would go way higher than what the car actually requires. Some policyholders also keep the IDV very high thinking that when they are selling the vehicle, this factor will help fetch a higher price for the used car. However, this is not true.

What should be the ideal amount?

The ideal amount of your IDV should be aligned with the current market value of your car. Try keeping the value as near to the market value of your car as possible. This way, you can keep yourself away from going too low or too high with Insured Declared Value. 

Also, remember that the age of your car also decreases the required IDV. The older your car gets, the lesser IDV is should get.Calculating the correct Insured Declared Value for your car is critical. But, you need to be very clear about the scenarios before making your final decision.

To sign off, if you are thinking about increasing your car’s Insured Declared Value, evaluate the current market value first. Try to match that and you will find the perfect IDV and ideal insurance coverage for your car.

Read more car insurance terminologies you should know

Feel free to share your comments.


Buying car insurance through Turtlemint

If you have a car and wish to use it on Indian roads, you need to get a car insurance policy first. The Motor Vehicles Act which was passed in 1988 mandates every vehicle to have a valid insurance cover before it is driven on Indian roads. So, buying a car insurance policy is inevitable. Do you know from where you can buy a policy?

A car insurance policy is available both online as well as offline. The offline mode is cumbersome as you have to visit an insurance company’s office or seek the help of an insurance agent. The other alternative is buying a policy online. There are various websites which cater to this need. Online brokers and aggregators let you buy a policy after comparing different plans. Turtlemint is an online broker through which you can buy a car insurance policy easily. Turtlemint is tied up with leading insurance companies offering the best car insurance policies. Moreover, personalized assistance is provided when you buy the policy and also at the time of claim. So, if you are planning to buy a car insurance policy for your car, you can choose Turtlemint. The process is simple and takes minutes. Here is a step by step process of buying a car insurance policy through Turtlemint’s website –

  1. First, visit Turtlemint’s website at You would land on the homepage which looks like this –

2.On the homepage, select ‘Car’ tab. You would be redirected to a new page. Here is how the page looks –

3.In the box displaying ‘Car number’, enter the number of your car. Once you do so, you would have to click on ‘Find Plans’ which would take you to another page wherein you would have to provide the details of your car. Here is what the page would look like –

You are required to enter the car model, the manufacturing year, the fuel type and the variant of your car. These details are required for calculating the premium and the Insured Declared Value (IDV) of the different plans. When you hit ’Next’, you would be asked whether you want a new policy or renew an existing one. Then you would be asked your mobile number and email id for sending the quotes through SMS and/or email respectively.

This information is optional. If you don’t provide your contact details, you can hit ‘Show Quotes’ and be directed to a page showing the available plans.

4.Alternatively, if you don’t know your car’s number, there is another option. Here’s what –

In this page, instead of providing your car number, choose the option mentioned below – ‘Continue without car number’. When you click this option, you would be taken to another page wherein you would have to choose your RTO –

Once you provide the RTO, you would be asked your car’s model.

After entering the model, the manufacturing year, fuel type and variant of the car is to be provided –

After you provide these details, you have to specify whether you want a new policy or renew an existing one –

When you give the required information, you can choose to get the quotes of the different plans through SMS or email or both. This information is optional. If you don’t want you can directly skip to see the plans and their quotes –

5.Whether you know the car’s number and proceed to see the quotes or you go by the alternate way, you would see the available plans with the premiums when you hit ‘Show quotes’. Here’s what the page would look like –

In the left hand corner, you can see various customizations available. If you have fitted accessories in your car, you can put in their value under ‘Value of your accessories’ and update the quotes –

6.Similarly, you can choose the mentioned add-ons and again update the results –

7.When you scroll down on the page, there is a discount if you choose voluntary deductible. If you choose a deductible and enter the chosen amount, you get a premium discount –

8.Based on the chosen customizations, you can shortlist a plan with comprehensive coverage features at the lowest premium rate. Then you would have to click the ‘Buy’ button beside the chosen plan –

9.After you click ‘Buy’, you would be directed to a new page which looks like this –

10.You are required to provide the details of the registered owner of the car. Once you do so and hit ‘Continue’, you would be asked to confirm the registration number of the car –

11.When you hit ‘Continue’, you would be asked your details and your policy’s details. You would have to provide the date from which you want the policy to start, the engine number, chassis number, whether or not your car is financed, the institution offering the finance, registered and correspondence address –

12.When you hit ‘Continue’, you would be asked your personal details –

13.When the details are verified, you can procced to pay the premium –

14.Enter the payment details and complete the premium payment. Once you pay the premium the policy would be issued and you would get the policy details in your mail and also as a hard copy.

This is how you can buy a car insurance policy through Turtlemint. Wasn’t the process easy?

So, the next time you think of buying car insurance, choose Turtlemint and ease the process.