Driving during lockdown? Your insurance claim may be denied!

We all are aware of the current situation in the country due to the spread of Corona Virus. We had nationwide complete lock down till 17 May 2020 where citizens were asked to stay in their homes to contain the spread of virus. During this time, many cases were reported from different parts of the country that showed people coming out from their houses on their bikes and cars unnecessarily. Now, a report has surfaced online that says ‘if a person is driving on the road during the lock down without a valid lock down pass, his or her insurance claim might be denied’.

Team-Bhp has shared an image on their forum that verifies the same. According to the report, Cholamandalam Insurance has issued a show cause notice to the owner of a car over the violation of rules under Motor Vehicle Act during the lockdown period. The car according to the report, car got into an accident on 26 April 2020 and the Insurance company has asked the owner to provide proper documents like e-pass or any other permission that allows the owner and the car to be on road during the time of lockdown. The insurance company has asked owner to produce the documents in 7 days and if the owner fails to do so, the claim will be denied.

This is not just the case with Cholamandalam but other insurance companies might also be follow the same rule to handle accident/theft cases that had happened during the lockdown period. Insurance companies tend to deny insurance claims to owner if it is found that the vehicle was being used illegally or was used for some illegal purposes. In this case, violating the lockdown is illegal and that is why there are chances that the insurance company might deny the claim.

So, in short, if your vehicle did not have an e-pass and got into an accident during the lockdown period, the chance of the insurance company denying your claim is pretty high.

The same may apply if your vehicle is stolen from a place other than your residence or parking spot. The insurance company may ask you to produce proof showing how the vehicle reached the other spot from it was stolen without e-pass and might reject your claim.

So, if you want to go out during the lock down in your car or two wheeler, make sure that you have a valid e-pass that will protect you in case of an insurance claim.