Adhil Shetty BankBazaar.com
Vehicle insurance is an integral part and process of owning a vehicle. While insurance is thought as a recurring annual expenditure by some, there are various auto insurance add-ons that provide users multifold benefits increasing the protective cover for the vehicle as well as the owner.
In this day and age of growing needs, various external factors affect each vehicle owner directly or indirectly in some way or the other. Sometimes having general car insurance is not adequate and various add-ons are increasingly becoming an essential part of the auto insurance package. Here is a list of some of the common insurance add-ons offered by various auto insurance companies today.
Zero Depreciation: Zero depreciation is one of the most widely used add on covers sold by auto insurance companies. Unlike other add-ons which are popular with only a limited set of high end segment, zero deprecation is quite popular across all segments. A zero depreciation add on policy ensures that one can receive a full claim on the value of parts that are replaced after an accident. Usually insurance companies offer zero depreciation add-on only for the first three years from the time of purchase of the vehicle. The older the vehicle gets, the higher can be the premium for zero depreciation add on policy. Getting full claim without any depreciation of bumpers and other such parts that are fully replaced post any accident offers a win-win situation for both the consumer as well as the insurance company.
Quick Assistance of Road: Quick assistance of road add-on enables basic services in case of an emergency while driving through a remote location or one devoid of any assistance or service centers. From having a flat tire or running out of fuel to battery related technical issues and even an untoward accident in a remote location are all covered under this policy. Users opting for such add-on policies can avail fuel assistance, taxi and accommodation benefits when started in a remote destination.
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Engine and Electronic Circuit Cover: Engine and electronic circuit cover as the name suggests offers protection to the engine and electronic circuit especially in case of flooding. Hydro static lock or repeatedly trying to run a moist engine is one of the major causes of engine failure. Such damage is not covered under normal motor insurance policy. A dedicated electronic and engine cover add-on is the best way to avoid massive cost repairs and electronic circuits are easily damaged and cost a fortune to get replaced or repaired. Since water logging during the rainy season is quite common in all Indian cities and towns. Opting for an engine and electronic circuit insurance protection add-on is quite useful for the normal car owner.
Return to invoice: Return to invoice is an auto insurance add-on that provides the user the option of availing the full value of the vehicle in case the car gets totally damaged in an accident or otherwise. The advantage of return to invoice add-on is that the user gets full reimbursement without the 5% depreciation. On the downside, the return to invoice add-on is usually available only in the first year of buying a vehicle.
No-claim Bonus Protection (NCB): No claim bonus retention add-on acts like a reward for not claiming any insurance claim in the last few years. Usually a lot of people buy car insurance and renew it each year without actually filing for any claims. The no claim bonus acts as a reward policy by offering discount up to 50%. Without the no claim bonus or NCB add-on, even a single claim can bring down the discount to zero but NCB add-on allows for discounted protection even after availing a past claim.
Personal Accident Cover: Personal accident cover add-on can include the owner as well as the paid driver or both depending on the insurance company. In case of a owner driver, a person is entitled to a 100% claim in case of death or permanent loss of limbs. The downside is that a personal accident cover is not provided in case of the vehicle being owned by a company as well as in case the owner does not hold a valid driving license. In case of multiple vehicles owned by the same owner, personal accident cover add-on is provided only for one vehicle.
Loss of Personal Belongings: Loss of personal belongings add-on allows users to claim any theft or apparent loss of personal belongings including laptop or electronic equipment from a locked vehicle. Various insurance companies offer a wide range of personal belonging loss claim which can go as high as Rs 50,000.
The author is a CEO at BankBazaar.com
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