Accidental Loss

Any damage that was caused by an unforeseen and unexpected event is, according to insurance policies, accidental loss. Accidental loss forms part of many third-party insurance policies, such as third-party car insurance. A requisite for insurers to pay out for this type of insurance, is that the damage must be accidental. That is, if a driver intentionally causes damage to another person’s vehicle, they are not legally covered by their insurer.

Further, damage caused by poor maintenance, or wear and tear, is not considered an insurable risk, as the damage was not accidental. Insurance is only a protection against potential and not inevitable perils, which means foreseeable damage is not covered. (See ‘Assurance’).