Does motor insurance cover fire damage caused by a non-company fitted accessory?

Does motor insurance policy cover losses caused due to non -OEM accessories?

What happens when an insurance claim is denied due to a short circuit in a non-original equipment manufacturer (OEM) accessory? Today’s Ask Wallet-Wise query addresses the coverage of such parts under standard motor insurance policies even when electronics are installed at the showroom or by a dealer.

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My Alto K10 car caught fire and was completely damaged. As it was under insurance, a claim was filled. They sent forensic expert to ascertain the cause of fire. He reported that fire was caused by a short circuit in the camera wiring not covered under insurance, as it was not company fitted. But the camera was fitted at the showroom as additional accessories with separate bills. Now they are rejecting the claim and refusing to pay.

Expert Advice: We understand how distressing it can be to lose a vehicle to fire and even more so when the claim process doesn’t go as expected.

In your case, the fire was traced back to a short circuit in the wiring of a camera accessory, which, according to the forensic report, was not part of the original manufacturer and fitment. This became the basis for claim denial, as damages arising solely from electrical or mechanical breakdowns are typically excluded under standard motor insurance policies unless they result from an insured peril such as an accident or natural calamity.

Vehicle manufacturers build cars using high-quality components and follow strict safety and performance standards. Every component is tested extensively to ensure the vehicle functions as intended.

Modifying or altering the original equipment, especially the electrical system, may compromise the vehicle’s integrity and potentially lead to unexpected damage or increased risk. In this case, the connection to the OEM electrical system appears to have introduced a vulnerability, which may have contributed to the unfortunate incident.

Most standard motor insurance policies exclude coverage for electrical or mechanical breakdowns unless they are directly linked to a covered event. That said, customers who wish to enhance their coverage to include risks such as electrical or mechanical breakdowns can do so by opting for specific add-on covers available at the time of policy purchase or renewal.

These add-ons provide extended protection beyond the standard exclusions and are available at an additional premium. It is advisable to evaluate your vehicle’s usage, any additional accessories or modifications, and select suitable add-ons accordingly. Doing so ensures broader coverage and helps avoid potential misunderstandings during claims.

While such situations can be difficult, insurance coverage is governed by the terms outlined in the policy. Being aware of these terms and selecting the right combination of base cover and add-ons ensures better financial protection and a more seamless claims experience.

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