Lost Insurance Compensation: Why Did That Happen?
Just imagine. If you see a car with a good exterior look and a comfortable interior, what do you think? You might think, "There's nothing to think about. I'll definitely like it." But do you know, a vehicle can do much more than that. Imagine an accident. If the vehicle is not insured, the problem is yours. But there's no point in being insured if you don't get proper insurance compensation. There can be various reasons for not getting insurance compensation. Today, MotorGuide will tell you why you might have lost your insurance compensation.
Insurance Types
You already know that there are three types of vehicle insurance in Sri Lanka.
- Full insurance
- Third party insurance
- Third party fire & theft insurance
Among these insurance types, 3rd party fire & theft insurance is not much talked about. Because with this insurance, only a few limited coverages can be obtained. These are damages to the third party, damages from fire, and theft. Only for these damages does 3rd party fire & theft insurance pay compensation.
In addition, you know what damages are covered by full insurance and 3rd party insurance. Because we always talk about them. The other thing is, usually, these two types of insurance are applied to vehicles.
Why was insurance compensation lost?
Did you consider the vehicle's market value?
When insuring a vehicle, you won't get any special advantage by insuring it for more than its market value. Even if an accident suddenly occurs, the compensation received will be the market value. If you insure it for less than the market value, when the vehicle is damaged, you won't receive the market value as compensation. Sometimes you might receive a lower amount. Also, even if the vehicle is totally damaged, you will only receive the market value relevant to the vehicle you insured.
The other thing is, just because the market value changes, the compensation you receive won't decrease or increase. For that, the insurance needs to be adjusted. At that time, you might feel that you didn't receive proper insurance compensation. Therefore, you need to make sure to insure the vehicle for the correct market value.
Is the insurance ownership not in your name?
If you have obtained a registered or unregistered vehicle, transfer the ownership of the vehicle to your name. Also, get insurance in your name. Because vehicles without such insurance ownership cannot obtain insurance. In such cases, you might lose insurance compensation.
Did you get the correct insurance coverage?
You might be insuring the vehicle for personal use, for rental purposes, for driver training, or for goods or passenger transport. You should insure the vehicle for the relevant coverage. For example, if you insure a vehicle for personal use, then give it for rent, and an accident occurs, your claim for compensation might be rejected. According to you, that too is a loss of insurance compensation despite having the vehicle insured.
In addition to these things, if an accident occurs while driving after consuming drinks, or if your driving license has expired at the time of an accident, then you will also lose insurance compensation.
Now you understand, right, that even if you lost insurance compensation before, there was a reason for it? Perhaps it could be one of the reasons we mentioned today. In any case, due to your ignorance and negligence, even if the vehicle is insured, insurance compensation can be lost. Therefore, if you remember what we discussed today and do the necessary things accordingly, you can prevent losing insurance compensation.
