5 MinsNov 03, 2020
Did you, like most other car owners, buy motor insurance only because it is mandatory? Well, then you do know that in case of a natural calamity or an accident your comprehensive motor insurance will pay for any third-party damage, repairs to your vehicle and your (owner-driver) hospitalization charges.
However, what you may not know is that you can increase your insurance coverage by opting for some extras. Here are a few add-on covers that you could consider:
1. Zero Depreciation: Over the years, you may need to replace parts of your car when they get damaged due to regular use. But a basic comprehensive motor insurance policy generally does not pay for these parts and you will have to foot the bill yourself. However, the Zero Depreciation add-on includes the depreciation component in the policy, giving you full coverage. This add-on is usually valid for five years from the date of purchase of the car. You can claim the total cost of the replaced parts in an accident, too, with this add-on.
2. Roadside Assistance: Even a well-maintained vehicle may develop snags and break down, leaving you stranded in a remote location. This is when a Roadside Assistance add-on comes in handy. It ensures that your insurer will provide services such as a motor mechanic, towing, battery-related problems, and so on. This add-on is useful if you are a regular car user and drive long distances. Many motor insurance policies today offer this add-on bundled in the basic comprehensive policy.
3. No Claim Bonus Protection: As a vehicle owner you are entitled to a No Claim Bonus (NCB) if you don’t make any claim during your policy term. This means your premium will be lower in the following year when you renew it. But if you do make a claim, you lose this benefit. However, the No Claim Bonus Protection add-on ensures that you get your NCB even if you make a claim and thereby ensures a lower premium. However, some insurance companies may not allow the NCB Protection benefit if you make more than say 2 or 3 claims during a policy term. Hence, do check with your insurer before buying the add-on cover.
[Also Read: How your Motor Insurance protects your car and you!]
4. Engine Secure/Protection Cover: The basic comprehensive motor insurance does not pay for damage to your vehicle’s engine. But the Engine Protect add-on cover does. If you live in an area where flooding is a common occurrence, then this add-on cover is useful to have as your engine could get damaged due to waterlogging. This add-on is also useful if you own a premium high-end luxury vehicle, as repairing such engines could cost quite a bit.
5. Consumables Cover: When you repair your vehicle, you have to bear the cost of small-ticket items such as nuts and bolts, oil and screws, among others. If you have an expensive car, even these small-ticket items may cause a dent in your wallet. It would help if you got this add-on so that your insurer pays for them.
6. Return to Invoice Cover: This add-on ensures that in case your vehicle is stolen or damaged beyond repair, your insurer will reimburse you the original invoice value of the car including road taxes and registration charges. It is generally available for vehicles up to three years old. It may not be available for imported cars.
7. Key Replacement Cover: Do you lose your keys often? Then this is a must-have add-on cover for you. This coverage comes into play when you lose or misplace your keys. If your vehicle is stolen and you get it back, this coverage will replace your lock and key system.
8. Accident Coverage for Passengers: This is generally a lump sum coverage of Rs. 1 lakh in case of a passenger suffering death, injury or disability sustained due to an accident.
9. Accidental coverage for the driver: In case you have a driver, it makes sense to opt for this add- on. It will take care of the medical costs of your driver in case of an accident.
Remember, these add-on covers add to your premium. Also, some of them may not be available for older vehicles. Make sure you check these conditions before buying the one that meets your needs.
Axis Bank has partnered with leading insurers like Bharti Axa General Insurance and TATA AIG General Insurance to offer motor insurance products to meet all your needs.
Disclaimer: The Source, a Mumbai-based content creation, and curation firm has authored this article. Axis Bank does not influence the views of the author in any way. Axis Bank and The Source shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.