While vehicle insurance is considered as a mandatory part of owning a vehicle and is a compulsory spend, there are various auto insurance add-ons that provide users benefits increasing the cover for the vehicle and protecting the owner. There are several factors which affect the vehicle or the vehicle owner directly or indirectly and therefore just a car or bike insurance would not be adequate to get the full benefit. Let us have a look at the common add ons, which can be included in the policy.
Personal Accident Cover
This is the insurance cover provided to the owner of the vehicle or the driver of the vehicle in case of an injury caused to them during an accident of the insured vehicle. Though there are certain exceptions in terms of the limit of the cover which varies from the owner to a driver other than the owner. Also ownership of the vehicle (Company owned vs private owned) and validity of the license etc has implications on this benefit.
No-claim Bonus (NCB)
Usually a lot of people buy car insurance and renew it each year without actually filing for any claims. This acts as a reward for them offering discounts varying in percentages of the premium, they have to pay for renewal. It is in a way a retention bonus but also a reward too. This can be transferred subject to certain terms and conditions.
Cover for Loss of Personal Belongings
This protects the vehicle owner from the loss of any personal belongings like electronic items from the insured vehicle, due to theft or an accident. There are various options in this which is based on the items included for protection and value of benefit.
Zero Depreciation Cover
This is one of the most widely used add ons in the Motor Insurance Industry. A zero depreciation add on policy provides the options of a full claim on the value of parts that are replaced post an accident. Usually insurance companies offer zero depreciation add-on only for the first three years from the time of purchase of the vehicle. With the ageing of the vehicle the premium for zero depreciation add on increases.
This provides the quick delivery of basic services in case of an emergency while driving through a remote location or one devoid of any assistance or service centres, which includes having a flat tyre, running out of fuel, battery related problems, or other technical troubles arising out a minor accident in a remote location etc. This provides benefits in terms of availing taxi assistance, fuel assistance and accommodation benefits, when stuck in a remote location.
Return to Invoice or Total Loss Cover
This provides the user the option of availing the full value of the vehicle in case the car gets totally damaged in an accident or in a natural calamity or disaster. The user gets the full reimbursement of the value without even a reduction of the basic depreciation. This is usually offered only for the first year of the vehicle.
Engine and Electronic Circuit Cover
This offers the user a choice of protection to the engine and electronic circuit especially in case of flooding and natural calamities. If a vehicle engine is repeatedly attempted to start when moist it causes a hydro static lock. This type of damage is covered in this add on. Since water logging is very common during monsoons in the Indian condition, this would be a benefit for the car owner.