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Beyond Basic Coverage: Demystifying Add-Ons In Motor Insurance
Writer: Bushra Naaz
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India, 30 Nov 2023 5:17 AM GMT
Editor : Devanshee Singh |
She is an avid reader, a movie buff and someone who lives on classic Hindi songs. As a media professional, she tries to create content the audience can connect with. Her purpose in life is to make the world a little better place, and she has started taking steps towards it.
Creatives : Bushra Naaz
She plays a pivotal role in shaping the narrative of the platform, ensuring that every piece of content is informative, engaging, and thought-provoking. With a deep understanding of current affairs and social issues, she strives to deliver content that not only educates but also inspires positive change within society.
This Article Aims To Demystify Some Common Add-Ons In Motor Insurance Policies And How They Can Provide Enhanced Protection And Peace Of Mind.
Motor insurance is a necessity for vehicle owners in today's world. However, most people only opt for the basic third-party liability coverage without understanding the value of add-ons. This article aims to demystify some common add-ons in motor insurance policies and how they can provide enhanced protection and peace of mind.
1. Zero Depreciation Cover
One major add-on for car or bike insurance is zero depreciation cover. When a vehicle meets with an accident and needs repairs, insurance companies deduct the depreciation amount from the claim. Depreciation is a reduction in the value of the vehicle with age. With zero depreciation cover, you need not bear this cost. The insurance company will pay for repairs without deducting the depreciation amount. it ensures your vehicle is restored to its original condition after an accident claim. Zero depreciation cover is highly beneficial, especially for new vehicles. It protects the resale value of your vehicle in case of any damage.
2. Engine and Electrical Equipment Cover
Another valuable add-on is the engine protection cover. It provides coverage for repairs or replacement of engine and electrical equipment like alternator, dynamo, and fuel pump in case they suffer damage due to electrical or mechanical failure. Such failures are generally not covered in a standard policy. However, they can prove to be very expensive to repair. With an engine protection cover, you need not bear these unexpected repair costs. It offers comprehensive protection for your vehicle's vital components.
3. Return to Invoice Cover
For high-end vehicles that lose significant value in the first few years, return to invoice cover is recommended. In case the vehicle is stolen or becomes a total loss, this add-on ensures you get a claim amount equal to the vehicle's original purchase invoice price. It protects the financial value of your investment in the vehicle. Without this cover, insurance companies calculate the claim amount based on the market value of the vehicle at the time of loss/theft, which may be much lower than the purchase price.
4. Roadside Assistance
Breakdowns while on the road can be inconvenient and stressful. Roadside assistance cover provides services like towing, fuel delivery, flat tire repair and other assistance in case your vehicle faces a mechanical fault and is not driveable. It ensures you get help without delay and do not have to arrange assistance on your own during an emergency situation. The cover is useful for long-distance travel and provides peace of mind.
5. Personal Accident Cover
While motor insurance covers vehicle damage, it does not cover personal injuries that may occur in an accident. Personal accident cover is a mandatory and important add-on that provides compensation in case of permanent disability or death of the insured/driver due to an accident. It offers financial protection and support to family members. This cover is highly recommended given that road accidents can have serious physical consequences.
Conclusion
Whether bike or car insurance, add-ons play a crucial role in providing comprehensive protection for one's vehicle and themselves. While the premium amount increases with add-ons, the enhanced coverage is well worth the cost. Opting only for basic third-party liability may save some money in the short-run but can leave one vulnerable to high repair/medical costs in case of unfortunate events. It is always better to be prepared financially for unforeseen circumstances. Customers must carefully evaluate their protection needs and choose suitable add-ons for complete peace of mind.
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