New Delhi: The loss of life of former Tata group chairman Cyrus Mistry in a street accident has ignited a debate over the eligibility of insurance coverage claims in accident instances however business gamers say the very function of shopping for insurance coverage is to hedge towards danger, whether or not as a result of human error or in any other case. Human error or violation of guidelines is unlikely to vitiate an insurance coverage coverage and unintended loss of life claims will proceed to be honoured albeit in distinctive instances the compensation quantity could also be lowered.
Insurance paperwork per se don’t checklist out acts, equivalent to not sporting a seat belt, that might impression cost of compensation in case of loss of life of occupants aside from the motive force, they mentioned.
However, most insurance policies point out “any accidental loss or damage suffered whilst the insured or any person driving the vehicle with the knowledge and consent of the insured is under the influence of intoxicating liquor or drugs”, the compensation quantity could also be restricted and would range from automobile make and the type of coverage taken.
It is to be famous that the previous Tata Sons Chairman and a pal of his died in a tragic street accident on Sunday afternoon whereas driving again to Mumbai from Ahmedabad together with two different individuals, who’ve sustained accidents.
As per the preliminary investigations by the state police, the deceased weren’t sporting seat belts and termed over-speeding and an “error of judgement” by the motive force to have led to the accident.
“Majority of the accidents happen because of human negligence. We are here because such human errors happen, if such human errors didn’t happen, then very less number of accidents will happen. One buys a policy which actually covers his/her negligence.
“But our emphasis is all the time on security. We carry on educating the purchasers about their security and sensitise them by way of sustained campaigns as a result of an insurance coverage cowl can solely compensate for the monetary loss however not for the lack of human life,” Sanjay Datta, Chief – Underwriting & Claims, ICICI Lombard General Insurance Company, said.
Insurance companies cover the claims arising out of human error or negligence, for example, one may even sustain an injury while cooking at home or there may be a fire incident or something like that, he added.
“If the insured has a complete motor insurance coverage coverage, the damages to the automobile will probably be payable as per coverage phrases and situations. In addition, the chance of occupants within the automobile can be coated beneath the mentioned coverage. Moreover, I’d strongly urge anybody travelling in a automobile to put on a seat belt always,” Bajaj Allianz General Insurance MD Tapan Singhel said.
Rash driving is an offence under Section 279 of the Motor Vehicles Act, while it is advisable that motorists follow safe driving practices at all times, said a Chief Technical Officer of another private sector insurer, requesting not to be named.
“In case of an unlucky accident arising out of rash or negligent driving, the insurance coverage firm is legally certain to honour the declare for damages to the automobile, in step with the phrases and situations specified within the motor insurance coverage coverage,” the official cited above said.
For a rear passenger wearing a seat belt or not, makes no case for denial of the claim, said an official from another general insurance firm.
It is a mandatory road safety rule in India for the back seat passengers to wear their seat belts.
Third-party insurance is compulsory for all vehicles, while own damage is optional presently.
Usually, vehicle owners buy a comprehensive insurance policy (own damage and third party together) every year as the term of such policies are usually one year.
The owner and insurance company issuing the policy are the first party and the second party, respectively, as per the insurance contract. The third party is the term used for a person other than the vehicle owner.
Datta and one of the persons cited above said that as insurers they can’t monitor if a driver is overspeeding, if wearing the seat belt or not, or if the person lacked sleep and things like that.
According to Prudent Insurance Brokers joint managing director Pavanjit Singh Dhingra, “Whether an individual is sporting a seat belt or not shouldn’t be a topic of insurance coverage contract”.
So, a passenger killed or injured in a car crash would be entitled to the third party claim, he added.
Upon analysing the top causes listed by several insurers on their websites for the rejection of a claim include drunken driving, driving without a license, non-disclosure of information/hiding the truth, fraudulent claims, delay in intimation, policy lapse, car modification without informing the insurer, among others.
However, negligence such as driving a car in a flooded area despite the manufacturer’s manual stating the car will break down if driven in such condition, an insurer has a full right to reject the claim.
Even violation of conditions, such as driving a personal car for commercial purposes, can also lead to the rejection of the claim.
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Source: auto.economictimes.indiatimes.com