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.
