Motor insurance policies are a must-have in India considering the legal requirement as laid down by the Motor Vehicles Act of 1988. All vehicles owners are mandatorily required to purchase a motor insurance coverage, third-party policy being the bare minimum. Owing to its advantages that offers a financial protection for damages, vehicle insurance is also considered as an investment that helps you save money on repairs in the long run.
Your vehicle insurance policy is not only available as a third-party cover, but also as a comprehensive plan. Under this comprehensive coverage, protection against theft, fires, natural calamities, and other man-made perils are included thereby making an all-round cover for your car or bike. Apart from these, an additional feature that can be useful in customising the coverage for your vehicle is add-on facility. Add-ons are coverage that you can buy over and above the comprehensive cover when purchasing vehicle insurance online or offline. Listed below are some add-on covers that significantly increase the value of your motor insurance policies.
#1 Zero Depreciation add-on
Zero-depreciation add-on is popularly known as nil depreciation cover too. Usually when a claim is made, the insurance company deducts the applicable depreciation before pay-out. A reduction of such depreciation reduces the claim amount substantially. To counter this, zero-depreciation add-on can be a smart way. The entire cost of replacement of these spares are reimbursed by the insurer thereby minimising the out-of-pocket expenses that you need to pay at the time of a claim. If you own an expensive vehicle, adding it to your car or bike insurance can be useful saving you big bucks in the future. The only caveat about this add-on is it is not available for vehicle older than five years. So, remember that when you are choosing a zero-depreciation plan.
#2 24×7 Roadside Assistance add-on
Another essential add-on that is helpful is the roadside assistance cover. With this add-on facility, you can avail round-the-clock repair and towing services for your vehicle. Be it a flat tyre or empty fuel tank or other technical services, they are available at a single call to the insurance company. No one wants to be stranded in the middle of the road with no access to help. The roadside assistance cover can come handy to help you out of these troubled situations. At times, some insurance companies also include accommodation facility if you find yourself in a remote location.
#3 NCB Protector
No claim bonus or NCB is the benefit provided by the insurance company for not raising any claims during the policy year. These benefits include a concession in the renewal premium wherein the percentage of concession starts at 20% going all the way up to 50%. But it isn’t always you will not file a claim. In situations where a claim is being made, the entire NCB benefits are lost. To avoid such a loss in your bike or car insurance cover, it is recommended to purchase an NCB protector. With this add-on cover, you can make claims for a specified and limited number of times before the NCB benefits become zero.
These are some of the must-have add-on covers to your comprehensive vehicle insurance. While they aren’t the only add-ons that can be purchased, you can also have a look at the engine protection cover, consumables cover, invoice protection cover and so on based on your use case. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.