Motor car insurance provides the convenience of stress-free driving in addition to helping one mitigate the financial loss that comes by way of an accident or damage. Every vehicle owner is required by the Motor Vehicles Act of 1988 to carry third-party liability insurance.
The first party is called the insured, the second party is known as the insurance provider, and the third party consists of all other parties. There are primarily three categories of motor insurance policies: Third Party, Own Damage, and Comprehensive. A third-party cover shields the insured against any liability resulting from third-party passing away, injury, or property damage.
Types Of Supplemental Insurance For Automobiles
With the aid of car insurance add-on covers, a comprehensive motor insurance policy ensures the maximum degree of protection. Some of them consist of:
- Zero Depreciation Coverage: When settling a claim, the insurer subtracts from the claim value the amount of depreciation that applies to any vehicle parts that are being replaced. Car owners can get a proper claim by using a “Zero Depreciation” cover to relieve them of the burden of paying the depreciation expense.
- Engine Protection Cover: Despite being one of the most crucial components of the vehicle, the engine is not covered by standard comprehensive plans for non-accidental damage. Buying “Engine Protection” coverage helps protect your vehicle from financial losses due to engine or gearbox damage caused by water intrusion or lubricating oil leaks.
- Return To Invoice Cover: The moment an automobile leaves the dealership, its value begins to decline. When purchasing car insurance, the Insured Declared Value, or IDV, is determined based on market value rather than the cost of the vehicle. Car owners can recover the invoice value of their vehicles in the event of loss or theft by purchasing a “Return to Invoice” add-on policy. Additionally, the price of the insurance as well as the road tax and registration paid while buying the new car, are also repaid.
- No Claim Bonus Protection Cover: One of the most advantageous add-on covers is the No Claim Bonus (NCB). If a car owner hasn’t filed any own damage claims throughout the motor insurance policy, the insurance company will reduce the premiums they charge. This is known as the NCB. The NCB concession is protected by the No Claim Bonus Protection Cover even if there is one claim throughout the policy year. Even with a claim, an NCB Protection add-on can help keep the rates low.
- Key And Lock Replacement Cover: In the event of an irrevocable loss, the Key and Lock Replacement Cover covers the cost of new locks and replacement keys. Key replacement is not covered by a standard policy, hence it is essential to purchase this add-on.
A car’s add-ons can provide total protection. Hence, it is important to consider the features when comparing premiums. The damages supplied by add-on covers are typically not covered by comprehensive insurance. Make sure you always renew your car insurance on time.
Standard T&C Apply
All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.