What Are Add-On Covers Of Motor Insurance
Till some years ago, insurers only provided standard motor insurance coverage. Now, with an additional premium, several optional covers are available that provide coverage much more than what the regular policy covers.
Basic comprehensive motor insurance provides coverage for damages to the car, third party or theft of the vehicle. Add–on plans are designed to offer insurance coverage to damages other than what the basic motor insurance covers. They help in getting an extensive cover for the damages caused and the cost of the repairs.
Here are some add-ons on the motor vehicle insurance coverage that you can choose to get added benefits of coverage on your vehicle-
Zero depreciation / Nil depreciation-
Zero depreciation is one of the most recommended add-on coverage that compensates the entire cost of replacing the parts without deducting depreciation.
Unlike the standard motor insurance plan where only the depreciated value of the vehicle is reimbursed, zero depreciation helps you recover the entire amount without any deduction for depreciation.
Engine protection cover
The engine protection cover is worth buying for owners who have branded and high-end cars.
The purpose of the protection cover is to give compensation to engine-related repairs other than accidents.
The protection is not available for regular wear and tear of the engine or damage caused to the engine due to negligence.
Return to Invoice
Having a return to invoice coverage ensures that the owner gets the entire cost of the vehicle as mentioned in the policy for theft of the car. The cost includes the registration cost and the paid road tax amount. The amount received should be equivalent to the cost of the vehicle available in the market. If the owner had paid a higher amount for the car, and the present amount is less, the latter would be considered for compensation.
NCB Protection cover
Policyholders could earn no claim bonus on their car insurance policy if they did not claim any damages during the year. NCB can go as high as 50% from 20%, thereby decreasing the premium in the subsequent years. The NCB add-on bonus helps to retain the accumulated bonus even if a claim was made during the year. The benefit of this claim may not be applicable if more than one claim has been made or a total loss claim has been made. This cover is not available to vehicles that age more than 3 years.
24 X 7 Roadside assistance cover
Under this cover, you get insured round the clock, whether on a trip or anywhere on the road. You get insured for towing, refueling, change of flat tyre, services of a mechanic in case of a car breakdown, etc.
Key replacement compensation
This compensation is given only when one happens to lose the keys or if they are stolen. You get the compensation for the cost incurred on replacing the lock and key of the vehicle if it is burgled although a police complaint needs to be registered in case of theft.
Daily Allowance cover
One gets daily allowance compensation on hiring a cab for daily commuting in case of loss or theft of the vehicle. The compensation amount could be from 100- 500 rupees per day depending upon the model of the car.
Like other covers, these add-on covers has its exclusions too.
For instance, this compensation is not available in case the car is not repaired under an authorized garage or the vehicle is under repair for less than 3 days.
This compensation is given on the money spent on replacing the nuts and bolts, screen washers, bearings, engine oil if the car meets an accident. The cost of replacing the consumables are excluded from the standard motor insurance. This compensation is not available on cars older than 3 years.
Loss of personal belongings
In case of loss of car with personal belongings, one can get compensation for the personal belongings present in the vehicle. This compensation can be claimed within a specified time. The claim amount can be as far as Rs. 50,000.
One need not purchase all the add-on covers and can choose the ones that they would need the most. One can buy comprehensive motor insurance and select some add-ons to get insured for any uncertain event.