Q: I am working in a project management team and I am not aware of the insurance as it is done by our accounts department. Recently while driving in a one-way lane I hit one of the concrete blocks and damaged my car. I submitted all the details pertaining to accident including police report, repair permission and claim form. But the insurance company rejected the claim stating that it is a traffic violation and the claim is not payable. It is really disappointing as many of the accidents can be attributed to traffic violations? A: Whoever purchases insurance should be very careful while making a decision to buy insurance. There are certain insurance companies, which do not pay if the accident is attributed to traffic violation and it is explicitly mentioned in their policy papers. But a majority of insurance companies do not put this condition. If some of the clients cause losses to insurance companies due to many traffic violations this is usually put as a special condition. Fortunately, you escaped with a minor loss. You should see that your accounts department impresses upon your insurer to remove this condition and if necessary pay additional premium or else change the insurer. Q: We are using heavy equipment covered under Plant and Equipment Insurance. Recently an equipment hit a neighboring building and damaged its telephone system. The insurance company informed us that this type of loss is not covered in the policy. Only damage to the equipment is covered. The equipment got very little damage. How can we cover damage to other's properties including cars on the road? A: First things first, you have to identify whether the equipment is frequently moving on the road and whether it is registered by traffic department. If your answer is affirmative, then you have to buy a Motor Insurance Policy and get “tools of trade extension.” Under this type of Motor Insurance policy, any damage to your mobile equipment and damage caused to third party properties and persons on the road and even whilst the equipment is at work is covered. If it is not designed to move on public road and not registered with traffic department, then you can insure the equipment under Plant and Equipment Policy. But this will not cover any damage caused to Third Parties. You need to buy another policy to cover such type of risk. The Public Liability Policy is designed to provide you with cover against such risks. * Shujaath Ahmed Khan, an MBA, General Manager, Creative Associates is also a consultant and an expert in Insurance, Investments and Real Estate. He can be contacted at [email protected], website-www.creativeassociates.blogspot.com. __
