Thu 21 Sep 2017 15:33:00 UTC
We have discussed the two type of motor policies, comprehensive and third party liability before. An important aspect of comprehensive policies is the availability of multiple add-on covers, that provide specific benefits not included in the original policy, at a cost.
The right add-on for you varies depending on your circumstances- vehicle type, driving pattern, geography etc. We have compiled a list of top 10 motor add-ons, their benefits, and when they’ll be useful to you. You can also use our calculator to evaluate the same for your car.
Zero Dep compensates you for damaged parts at the time of claim without depreciating them.
For example, imagine you have a 3 year old car, and you get into an accident that requires your front bumper be replaced. Insurance works on the principle of indemnity, which means you get compensated for the exact value of your loss. You have lost a 3 year old bumper, which means you get compensation for a 3 year old bumper.Your garage will give you a new fender, but your insurer will apply depreciation and so you end up footing part of the repair cost(equal to the amount of depreciation applied + deductible).
The zero dep add-on essentially reduces the depreciation charged to 0, so your out-of-pocket expense reduces to just the agreed deductible. This is a very important add-on, and we recommend you always choose it.
Covers you from damage to your engine due to leaks, water ingression, and consequential loss.
Starting a moist engine can cause extensive damage, and is often very expensive to repair. Water ingression is a serious problem in flood prone areas, or areas with poor rainwater drainage. This add-on(with some insurers) also covers for damaged electronic circuits, which are a key part of most cars, and not fully covered by the policy.
Some insurers offer electrical & electronic damage, and water ingression protection(AKA hydrostatic lock) as 2 separate add-ons. If your vehicle is often in waterlogged areas, this add-on will be useful to you. Most insurers restrict this add-on to vehicles under 5 years old.
Personal Accident cover pays out in case you get injured while driving. Comprehensive policies by default have a personal accident component, but that clause only covers the owner-driver.
This add-on covers both owner as well as a paid driver. Recommended for you if you hire a driver. There is also an add-on that covers your passengers in case of an accident. These PA covers cost in the region of INR 50 to INR 100, so are worth taking.
This is not an add-on per se, but is classified as an additional cover. It ensures your Third Party liability cover is extended to your driver. Costs INR 50, and is generally recommended to take if you use a driver.
Road Side Assistance, or RSA provides assistance in case your vehicle breaks down while driving.
RSA includes services like a mechanic to conduct minor repairs, fuel emergencies, towing services, and limited taxi services. Certain car manufacturers provide RSA on their own for certain vehices. If you don’t have it from your car manufacturer, and you go on long drives/ spend a lot of time on the road, this add-on will be useful for you.
Read the terms & conditions of this add-on carefully, because some insurers require you pay for the taxi & refuel benefits. The towing and service cost of minor repairs are generally covered by the add-on(you may have to pay for any spare parts).
This add-on protects your No Claim Bonus(NCB) even if you make a claim during the year.
NCB is a discount offered by the insurers when you go without making a claim. For every year without a claim, the discount(offered when you renew next year) increases, peaking at 50% (of OD component). When you make a claim, however, the NCB is reset back to 0.
The NCB protector add-on allows you to make claims and not have the NCB reset to 0. There are variations in this add-on: some insurers allow 1 claim, some allow 2, some keep NCB the same after claim, some reduce it to the next lower slab(instead of 0). For more information on NCB, you can read our blog post about it.
Covers you for damage done to the engine when water enters( through the exhaust, etc.) while you are driving.This add-on is similar to the engine protector add-on, however it doesn’t cover for electrical failures, it only protects you from water ingression damage to the engine. Useful if you specifically want water ingression protection. Many insurers do not have both engine protect and hydrostatic lock.
Covers damages to tyres and rims, which standard policies don’t cover.
If you have an accident, where tyres and other parts(like bumper, bonnet, etc) are damaged, then you can claim the repair amount from your insurer.However, if only tyres and rims are damaged, then insurance will not cover you. For cases like this, the tyre cover add-on can help.
This add-on is useful if you have expensive rims and tyres.
In case of a total loss, this add-on enables reimbursement of road tax and registration charges, in addition to 95% of IDV, as is standard.
The IDV(insured declared value) of your car is based on your ex-showroom price and age of car. In case of total loss of your vehicle, you get paid IDV minus deductible. This add-on cover also pays out your registration and road tax.
This add-on lets you report a claim due to theft or apparent loss of personal belongings such as laptop or electronic equipment from a locked vehicle.
Offfered by several insurance companies, claims can go as high as Rs. 50,000
This is an add-on cover to pay for your (the owner’s) transportation costs, when your vehicle is in the garage.
It is usable only if your vehicle has to be in a garage for more than 3-4 days(varies with insurer). Most repairs don’t take this long, so this add-on is not always worth it.
You may have accessories in your car, and this add-on helps you protect them. In this context, accessories refers to things that were added by you after you bought the car, and not options provided by the manufacturer that come with the car. Accessories are classified into two types:<p>
Most insurers who offer this add-on ask you to enter the value of your electronic and non electronic accessories separately, and load your premium accordingly.
Perilwise has a motor cover calculator that recommends you the ideal cover for your vehicle, with short explanations on why you should take it. You can always try it out and get a recommendation. If you have any queries, as always, please reach out to us in the comments!
Here’s a helpful infographic talking about only our top 8 add-ons: