It hardly takes few days or maximum a week before we see a Bike or a Car racing on the roads, of what we have seen on a celluloid. While the parents gift a high end bike or a car to their kin, the child ensures that they modify the look and stature of the vehicle. In turn, they make changes ranging from number plate, rims to an extent of configuring the engine of the vehicle.
If the insurer feels that, the modifications are violating the terms and conditions in the policy prescribed, there are high chances of the claim being rejected. Following are the various kinds of modifications and their impact on the overall insurance claim:
Minor Modification
Minor modifications are those which are limited to installation of an accessory that pose lowest risk to the safety of the vehicle. Usually the insurer might allow these minor modifications at the time of filing a claim even without prior intimation.
Basic Modification
These can be termed as more significant modifications, which involve more than installation of accessories. These can involve various changes like, removing the initial layout of seating and altering changes in the safety guard sensors and other aspects.
One has to seek the permission from the insurer before attempting to modify the changes at a basic level. If some of the “markings” are altered, the insurance company can reject the claim, even though you might have informed about your modifications superficially.
Complex Modification
If you are ever attempting to go ahead with complex changes like trying to change the engine performance, or the engine as a whole, the braking system, steering, gearbox or other vital parts of the vehicle, there is no need to go even for an insurance claim.
With changes that can challenge the safety, the insurer has the right to reject the claim. It’s highly unlikely that an insurance claim with complex modification would be entertained. If the safety of the modified vehicle is tested and approved by an Authorized Professional, only then a ray of hope for insurance claim might be sought.
Specially Modified Vehicle
A claim on a specially modified vehicle is accepted under some stern terms and conditions. For example, if a car has been modified from a normal passenger one to a race car, the insurance company has to be notified prior to the modification and also after the modification.
As per the vehicle safety certification, the modified vehicle must be certified by an expert personnel, and even though the claim is valid, it might exclude some usual inclusions of various features that come along with a normal and un-modified vehicle.
Transfer of Vehicle
If the Vehicle is intended to be transformed, a clear YES from the insurer after completing all the formalities is must and should, let it be for a future claim or even for payment of premium.
The above aspects must be taken into consideration before going for an insurance claim of a modified vehicle. It is always recommended, that the insurer is informed by the client before he / she intends of carrying out even the most minor modifications.