Who is liable for losses if insurance claims are denied?

If my car, previously used exclusively for private purposes, is now leased via ZoomCar and meets with an accident, what happens if the insurance claim is denied by the insurer citing the absence of a T-permit, thereby violating the terms for commercial use? Who would be liable for my losses in such a scenario? Additionally, if I hand over the vehicle keys to a guest, who then vanishes without a trace, and the insurer rejects a theft claim due to the handover, who would be responsible for making good my losses? Lastly, if my vehicle meets with an accident and the claim is either denied or partially settled by the insurer, and the guest denies responsibility and absconds, who would be liable for covering my losses?

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Advocate By LEAD INDIA Answered: 03 Feb 2025

Sir, if your car's insurance claim is denied due to commercial use, checks with ZoomCar for specific coverage or consider upgrading your policy. For theft when a guest vanishes with the keys, pursue legal action against the guest if identifiable. If an accident leads to a denied or partial claim, review your agreement with ZoomCar and consult a lawyer for potential recourse. Ensure you have comprehensive coverage and seek legal advice to navigate these situations. For further legal assistance contact us on our helpline number.
 

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