Question

Motor Vehicle Insurance Policy claims will not be accepted by the company if the vehicle is used for ............. purpose.

Hint:

Insurance is void if the vehicle is used for illegal or unauthorized activities.

Answer 1

A valid motor insurance policy covers losses only when the vehicle is used for the purpose mentioned in the policy.
If a vehicle is used for any illegal purpose such as smuggling, racing without permission, or transporting banned goods,
then any claim arising during such usage will be rejected by the insurance company.
This condition ensures that the insured does not misuse the vehicle for unlawful acts expecting cover for any resulting loss.
Therefore, claims are not accepted if the vehicle is used for an illegal purpose.