Q: We are having a motor insurance policy for our heavy vehicles. Recently one of our heavy vehicles hit and damaged the wall of our factory building. We approached our vehicle insurer to repair the wall as our policy has a liability section covering up to SR5,000,000. But our motor insurer refused to settle the claim stating that the policy does not cover damage to own property. It covers only when we hit other's vehicles or other's property. Why our property is not covered?A: The motor insurance specifically covers only liability to the third parties. One portion of the liability cover is property damage and the other covers bodily injury or death. The main intention of the motor vehicle policy is to cover own damage and the liability towards third parties and not to your own property or property in your custody. Insurance company is right in denying the claims under motor policy as the wall is the property of the insured and it is not considered as Third Party property. There is provision under property policy for impact damage but it is a restrictive cover. If you have a proper Property All Risks policy in place, then you can approach your property insurer for the claim as it relates to impact damage to the property due to mechanically propelled vehicle.Q: Our company is having Personal Accident policy for the staff covering each person up to SR100,000. Recently one of my colleagues had gone on vacation as he was suffering from chronic pain in the intestines. He was diabetic and suffering from high blood pressure and during the course of operation he died. The insurance company denied the claim stating that the cover is for death due to accident and not for the death caused by operation. A: The Personal Accident policies specifically cover death as a result of accidental bodily injury and they specifically exclude death caused to the insured person from sickness or disease. Based on the details provided prima facie the claim is not admissible. However it is right time to review your coverage and make sure that natural death is covered. You may need to pay a small additional premium to cover natural death under the policy. Better if you can scrap your current PA cover and take a fresh Group Life Policy and built in the covers which you had under your PA coverage. This will give you an additional coverage for death due to natural causes and provide you coverage under such eventualities.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 __
