Diwali is a festival of lights, joy, and celebrations — but it also comes with risks. Every year, incidents of vehicles catching fire due to firecrackers surface across India. If such a mishap happens, one big question arises: Will your car insurance cover the damage? Let’s break it down.
🛡️ 1. Third-Party Insurance Won’t Help
The basic third-party insurance policy, which is mandatory in India, only covers damages or injuries caused to other people and their property.
If your own car catches fire due to crackers, you won’t get any compensation under third-party insurance.
📑 2. Comprehensive Insurance Is the Key
To be covered for such incidents, you need a comprehensive car insurance policy.
This type of policy covers own-damage (OD), which includes fire accidents, natural calamities, theft, and vandalism.
So, if a cracker lands on your car and causes a fire, your comprehensive plan will cover the repair or replacement costs.
🔍 3. Claim Approval Conditions
Insurance companies will cover the fire accident only if:
The policyholder did not intentionally cause the fire.
The car was legally parked and not in a prohibited zone.
The damage report is backed with proper evidence, like photos, FIR (if needed), and surveyor inspection.
💰 4. Deductibles & Payouts
Even with comprehensive insurance, remember you must pay a deductible amount (a small part of the repair cost).
The insurer pays the rest as per the Insured Declared Value (IDV) of the car.
For total loss cases, you may get the full IDV as compensation.
⚠️ 5. Common Claim Rejection Reasons
Only having third-party insurance.
Delay in informing the insurance company.
Giving incomplete or false information.
Parking in an unsafe or restricted area.
🎇 6. Safety Tips for Diwali
Avoid parking cars near areas where crackers are being burst.
Use a car cover to protect against stray sparks.
Keep a fire extinguisher handy in your vehicle.
Final Word: If you only have third-party insurance, you won’t get coverage for cracker-induced car fires. But with a comprehensive car insurance policy, you can breathe easy this diwali knowing your car is protected.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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