A 2019 report by the research wing of Ministry of Road Transport and Highways states that road accidents are a leading cause of death in the country. India ranks first in the number of deaths in a road accident among 199 countries and accounts for approximately 11% of the total road accidental deaths around the world. With such an alarming number of fatalities, it is essential to ensure safety of not just the driver, but also for other drivers and pedestrians. While this figure cannot be reduced to an absolute zero, it definitely can be brough down using a car insurance policy.
A standard four wheeler insurance policy pays for the repairs after deducting the applicable depreciation on your car. However, it may be inadequate since depreciation is a time-based factor and has a significant impact on the pay-out your car insurance policy. Depreciation is one such example where a standard policy has limited coverage and that’s where add-ons come handy. Here are some add-ons and how they benefit in providing an enhanced coverage in your car insurance policy:
1. Zero Depreciation Add-On
Depreciation is a significant component that lowers the compensation paid by a comprehensive car insurance policy. Using a zero-depreciation add-on, or otherwise known as bumper-to-bumper cover or a nil depreciation plan, you can eliminate such effect of depreciation tomaximise the car insurance pay-out. *
2. No Claim Bonus Protection Cover
No-claim bonus or NCB is the facility where the insurance offers a markdown in your premium for every policy period without claims. The amount of such NCB starts at 20% and goes all the way to 50% for every consecutive policy period. Even a single claim for repairs will nullify the amount of such bonus to restore the premium amount to its original. But with the help of an NCB protection cover, claims can be made for a specified number of times without losing out on the NCB benefits. Thus, it is a smart way to not only save premiums, but also compensate for the repair expenses. *
3. Consumable’s add-on cover
Repair cost are not just comprised of the replacement expenses. There are different components apart from the parts that need to be replaced like screws, nuts, bolts, etc. With a consumable add-on cover, these minor repairs that add to a significant amount are also covered by your insurance policy. In result, the consumable cover offers a comprehensive coverage not just for major repair costs, but also the minor expenses. *
4. 24×7 Roadside Assistance (RSA) Cover
Car breakdowns at unexpected places can leave you struggling to get help for repairs. This can be on your family road trip or even on your daily commute to work. Whatever be the occasion of your travel, a 24X7 RSA add-on helps to tow your vehicle safely to the nearest service garage. In addition, it also helps jump start a stalled vehicle and even provide emergency fuel assistance. *
5. Standard T&C Apply
Add-ons can be beneficial however they impact car insurance prices consider it is an optional feature that can be bought. Hence, a car insurance calculator can be a handy tool that can be used to determine the impact of choosing these different add-ons on your car insurance premium.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.