Most motor insurance policies contain a clause that excludes claims where alcohol consumption is involved, irrespective of the level of alcohol in the blood, even within the permissible limits
Driving after consuming alcohol will void your motor insurance policy even if your blood alcohol content (BAC) is within the permissible limit. So, even if there is a permissible limit for consuming alcohol, you are most likely to be denied insurance.
Says Sundaram Varadan, director and secretary at the Insurance Brokers Association of India (IBAI): “In India, motor insurance policies generally exclude any claims associated with alcohol consumption, regardless of the level of intoxication. Even if you are within the legal limit (0.03 per cent blood alcohol content (BAC ) or 30 mg per 100 ml of blood), insurance claims may be rejected due to the absence of immediate blood alcohol level documentation at the accident scene.”
However, if you have proof of a BAC within the permissible limit, you may consider submitting it to the insurer for review, though this does not guarantee claim approval. Additionally, third-party claims often require intervention by motor accident tribunals if alcohol involvement is alleged.
Permanent Exclusion
Alcohol-related incidents are generally classified as permanent exclusions in almost all motor insurance policies. The legal threshold for BAC in India is set at 0.03 per cent (30 mg per 100 ml of blood).
“Typically, insurers rely on the police or traffic authorities to provide an official report, and a BAC reading from a certified medical test is conducted. This report serves as a reference point for assessing the validity of the claim in terms of alcohol influence,” says Varadan.
Also, typically, motor insurance policies contain a clause that excludes claims where alcohol consumption is involved, irrespective of the level of alcohol in the blood.
Though policies do not always specify the exact BAC thresholds, they often defer to the police report or traffic department’s assessment when reviewing and settling claims. If an official report confirms BAC is below the legal limit, the insurer may consider this alongside other factors, although the claim decision ultimately remains at the insurer’s discretion.
BAC Of Any Level Complicates Claim Process
In most cases, the presence of alcohol, even within the legal limit, complicates the claim process. Immediate BAC testing after the accident is uncommon, and delays may impact the claim.
Often, if an accident occurs, the policyholder may not have BAC documentation at the time of the accident. While obtaining a test confirming BAC below the legal limit may support your case, this does not guarantee claim approval, as it depends on various other factors, including the insurer’s assessment and the policy terms.
“At present, motor insurance policies do not offer an add-on coverage option for alcohol-related incidents, even when within legal limits. Driving under the influence is treated seriously, and the presence of alcohol in any amount typically activates a permanent exclusion,” says Varadan.
Though the insurer may still request BAC results if a claim is disputed, but no additional coverage option exists to protect against this exclusion.