Operating a automotive in Hong Kong will be pricey. It is costly sufficient to purchase a automotive by itself. Afterwards, you continue to should pay for not less than third-party automotive insurance coverage as mandated by Hong Kong regulation. Nonetheless, do you know that automotive insurance coverage is rather like every other sort of insurance coverage in that there are particular exclusion clauses? As soon as violated, your insurance coverage firm is not going to compensate you on your losses. To guard themselves from reckless, irresponsible drivers, insurers have arrange these phrases. This week at INO, we’ll check out how one can discover insurance coverage exclusion clauses in your coverage doc. We’ll additionally run down a listing of the highest six commonest automotive insurance coverage exclusions.
The place does it say that my automotive insurance coverage plan will be revoked?
Your automotive insurance coverage coverage doc clearly states the protection space and exclusion clauses. Additionally, it consists of attainable causes for declare denial. Just like a contract or settlement, your coverage doc lists out the rights and tasks of each purchaser and vendor. Your insurer agrees to simply accept your claims as long as you comply with observe their phrases and circumstances within the coverage settlement. This lowers or limits the dangers for insurers in fulfilling claims.
What occurs if I violate the phrases of my insurance coverage coverage?
Performing in opposition to the settlement of each events might be seen as violating the coverage phrases. Whereas insurers could differ of their phrases and circumstances, all coverage time period violations have extreme repercussions. Most significantly, this may invalidate your insurance coverage plan. Principally, your car will not be insured in opposition to accidents. As well as, you’ll be unable to drive legally on the roads of Hong Kong.
Final however not least, you may be absolutely answerable for any losses incurred by a 3rd occasion in a visitors accident. With out legitimate insurance coverage, you have to pay utterly out-of-pocket if you happen to’re answerable for the accident. Think about having to pay for the third occasion’s losses after which your personal automotive restore charges.
Below what conditions will my insurance coverage expire?
Your insurance coverage coverage clearly states that your plan will be revoked. Although every insurance coverage firm has a special set of laws, there are conditions generally considered as coverage violations throughout the business. Beneath are the commonest causes for insurance coverage revocation:
1. Failure to reveal all data and/or making false statements
Whenever you deliberately maintain essential data to your self or make false claims when shopping for a coverage, your insurer has the precise to refuse compensation. As an illustration, if you have not revealed that you simply recurrently transport heavy items along with your car, otherwise you lie about the place you’ve got parked your automotive. One other instance can be if you have not disclosed the one that normally drives your automotive.
2. Modifications to the car with out notifying the insurance coverage firm
In Hong Kong, car modification is closely regulated. Undeclared modified autos could also be considered as a violation of insurance coverage laws. After modification, any modifications in automotive efficiency or worth will have an effect on the standing of your automotive insurance coverage. An instance can be utilizing bald tires with out tread. Within the worst-case situation, your plan could not be appropriate. To keep away from potential bother, seek the advice of your insurer earlier than your car undergoes any modification.
After shopping for insurance coverage, if you happen to set up extra automotive components however do not inform your insurer, then whenever you file a declare, you possibly can solely obtain the equal quantity of compensation on your new automotive half. Furthermore, this is able to be the associated fee after depreciation. Because the majority of automotive upgrades are much more pricey than alternative components, you may undergo a higher loss.
Proceed studying: Your information to aftermarket car modifications in Hong Kong
3. Driving inebriated or medication
Not solely is driving underneath the affect unlawful, but it surely’ll additionally invalidate your automotive insurance coverage. Some insurance coverage corporations clearly state this on their coverage paperwork. Nonetheless, others solely embrace a imprecise disclaimer on the settlement, reminiscent of “if the policyholder commits any crime whereas driving their car, their plan will likely be revoked”.
Be aware that if you happen to trigger bodily hurt to a 3rd occasion whereas drunk driving, your insurance coverage firm theoretically doesn’t have to make a compensation primarily based on this exclusion. Nonetheless, because the policyholder injured, and even killed, the third occasion (the third occasion’s property loss shouldn’t be included on this limitation), in keeping with the Insurer’s Involved Precept within the Home Settlement issued by the Motor Insurers’ Bureau of Hong Kong (MIB), insurers should still be liable. Nonetheless, they’ll nonetheless obtain reimbursement from the policyholder for the third occasion’s medical charges by means of civil claims and different channels afterward.
4. Renting out your personal automotive to drive passengers
With no correct license or insurance coverage, it is unlawful to lease out a car for industrial functions in Hong Kong. That is additionally why Uber is controversial in Hong Kong. When you solely have personal automotive insurance coverage, you can’t use the automotive for industrial functions. As well as, taking passengers for remuneration can revoke your personal automotive insurance coverage. This leaves you and your passengers inadequately protected.
5. Driving and not using a license
Is your driver’s license suspended or revoked? Maybe you let somebody and not using a legitimate driver’s license drive your car? On this case, your insurance coverage firm has the precise to revoke your automotive insurance coverage. This is sensible as a result of a driver who doesn’t possess a driver’s license, or has had theirs suspended or revoked, is taken into account incapable of driving safely on the street. As well as, you may additionally be charged by the police for “driving with out third-party insurance coverage”. Even in case you are not the driving force on the time, additionally, you will get into bother.
6. Driving your car exterior of the designated areas
Aside from life insurance coverage and worldwide medical insurance coverage, most insurances have geographical restrictions. That is why most automotive insurance coverage bought in Hong Kong solely applies to Hong Kong. Though some complete automotive insurance coverage and third-party legal responsibility insurance coverage do present cowl for automotive rental, which is useful whenever you lease a automotive abroad to go on a self-driving tour. However, we nonetheless advocate buying extra insurance coverage right here.
Planning to go up north through the Hong Kong-Zhuhai-Macao Bridge (HZMB)? Get to know the cross-border automotive insurance coverage necessities.
Contact INO on your insurance coverage options
After attending to know the six commonest automotive insurance coverage exclusions, the following step is to discover a appropriate insurance coverage plan on your automotive.
INO has greater than 20 years of expertise within the automotive insurance coverage business. Except for automotive insurance coverage (third-party and complete), we additionally present house insurance coverage, motorbike insurance coverage, Voluntary Well being Insurance coverage Scheme (VHIS), HZMB insurance coverage, and plenty of extra. Get a free quote nowwith our on-line citation device! Alternatively, contact our crew of insurance coverage skilled advisors to study extra about INO’s automotive insurance coverage!
