Why “Valet Parking Damages” Cause Insurance Conflicts

Why Insurance Claims Get Complicated?

Car insurance in India is primarily designed to offer coverage for own damage and third-party liabilities. What happens when a Valet crashes the car? Claims become complicated and tricky. Here’s why:

Valet Parking Disclaimer

You must have noticed a disclaimer on valet parking slips: Parking at Owner’s Risk. Such disclaimers shift the responsibility from the valet parking service provider back to you.

Negligence of a Third Party

Car insurance policies typically offer coverage for damages caused by the insured's own driving accidents. Under valet parking damages, the insurance provider might reject the claim since the damage was caused by the valet's negligence or third-party negligence.

Unlicensed or Unauthorised Driver

In many cases, valet drivers may not have a valid license to drive a vehicle. In such situations, insurance companies reject the claim on the grounds of unlicensed or unauthorised driving.

Exclusions in Policy Terms

Car insurance policies may come with a predefined exclusion of valet parking damages.

What Car Owners Can Do?

Valet parking damages surely raise confusion in holding accountability, but it doesn’t mean that car owners are left completely defenceless. Here’s what you can do to reduce the chances of getting trapped in such situations:

Verify Valet’s Credibility

Before you hand over your vehicle keys to a stranger, make sure to verify the valet’s credibility. A small step to check the licence before trusting the valet goes a long way in protecting you against financial burden in case of damage.

Document Damages Immediately

If you notice any damage to your vehicle, document it immediately. You can click pictures, gather CCTV footage, and even obtain witness statements from those who can vouch for the damages caused by the valet.

Pro Tip: Take a picture of your vehicle before handing over the keys for valet parking.

Read the Valet Disclaimer Thoroughly

Valet parking slips typically include disclaimers that shift the responsibility from the valet service provider to the vehicle owner. Read such disclaimers thoroughly and hand over the keys only when you are comfortable.

Opt for Enhanced Coverage

Look for a motor insurance plan that offers enhanced or comprehensive coverage, as this can provide additional protection for damages caused during valet parking. Additionally, you can also keep updating your policy coverage to meet the changing needs in your city.

Trust Jio Insurance Broking to bring the best motor insurance policies under the same platform for you. Take your time to go through different car insurers and choose a policy that best suits your needs.

Report the Problem Immediately

In a case where the valet service provider refuses to take responsibility for damage because of valet parking, ensure to report the problem immediately to the consumer forum, legal authority and your insurance provider.

Closing Notes

Valet parking damages mostly operate in grey areas, especially when it comes to holding authorities accountable. In cases where insurance providers rely on policy exclusions and valet service providers cite disclaimers, you, as a vehicle owner, can take a few steps to avoid getting trapped in this play. Till the time IRDAI mandates Valet Parking Damage Coverage under motor insurance, performing due diligence remains a necessity for vehicle owners.

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