Given the easy availability of finance, increasing salaries, and attractive discounts on cars, purchasing a vehicle has now become simpler. According to the Society of Indian Automobile Manufacturers (SIAM), the national body representing major vehicle manufacturers in India, there was an approximate increase of 7.9 per cent in the purchase of passenger vehicles in March–April 2018, as compared to the same period a year ago. This growth in momentum is likely to stay robust in the near future.
Given the increase in the demand for cars, it is only natural that the car insurance industry is flourishing. According to the Motor Vehicle Act, 1988, it is compulsory to purchase a third-party car insurance policy. Such a motor insurance policy offers numerous benefits. It prevents you from burning a hole in your pocket towards damage of third-party property or bodily injuries in the event of an accident.
Car insurance providers allow you to enhance your basic car insurance policy through riders. These riders, also known as add-ons, offer extensive coverage, and allow you to customise your car insurance cover, according to your needs. Experts, therefore, recommend car owners to opt for an extensive cover with value-added features.
You may consider the following five riders along with your basic car insurance policy.
A zero depreciation cover is highly beneficial for you if you are a new car owner. At the time of making a claim, the car insurance provider is liable to bear the total cost of repair of car parts without taking into account the depreciation factor. It is important to note that motor insurance providers generally provide zero depreciation rider only for vehicles that are less than five years old.
Zero depreciation rider is an ideal choice if you are looking to make a smooth claim settlement with your car insurance company in the future. If your vehicle is new, purchasing a zero depreciation cover is recommended.
Given that the engine is the most important part of a car, it only becomes necessary to protect it. You may protect the engine and the electronic circuit by investing in an engine protection rider. This type of an add-on might prove to be beneficial for those residing in areas prone to waterlogging. The cost of repair of such damages is not covered under a basic car insurance policy. The expenses incurred towards engine repair could sometimes cost lakhs, which, in turn, could burn a hole in your pocket. Purchasing an engine protection cover from your car insurance company allows you to claim the repair amount from your car insurance provider.
An engine protection rider provides financial coverage in an event of damage to the engine due to leakage of lubricating oil, engine malfunction, and ingression of water. Therefore, you may protect the heart of your vehicle by simply opting for this rider on your basic car insurance policy.
Car insurance providers allow you to enhance your basic car insurance policy through add-on covers
A roadside assistance rider provides coverage in case you are stranded in the middle of the road due to a flat tyre or a mechanical breakdown. Getting help at such times becomes quite difficult, especially if you are driving through a remote location. A prudent solution is to supplement your basic motor insurance policy with a roadside assistance rider. After purchasing such a rider from your car insurance company, you may enjoy towing services by your motor insurance provider if your vehicle is immobilised or severely damaged. Besides, you may seek necessary assistance from your car insurance company if you require a flat tyre to be replaced. Roadside assistance rider by car insurance companies also offers coverage against battery-related technical issues, arranging for a mechanic, fuel assistance, alternate transport, and accommodation facilities.
According to a government report published in 2017, around 1.5 lakh individuals in India die every year due to road accidents. Even seeking treatment for bodily injuries can be quite expensive.
To protect yourself against financial liability arising due to an accident, you may invest in an enhanced owner personal accident rider offered by your car insurance company. Such an add-on covers temporary partial disability, permanent partial disability, total disability, and even accidental death. In the event of the death of the car insurance policyholder, the beneficiary is entitled to receive the lump sum amount. This amount may then be used to meet various financial obligations.
Remember, an enhanced owner personal accident rider does not provide coverage on accidents that occur under the influence of substances such as drugs or alcohol, hazardous occupation, self-inflicted injury, or suicide. It also does not offer cover for accidents due to participation in certain unsocial activities such as terrorism, riots, civil commotion, or criminal deeds.
NCB refers to the discount that you may enjoy from your car insurance company for not making any claims during the previous policy year. Under NCB, car insurance providers offer discounts between 20 per cent and 50 per cent if no car insurance claims are made over a period of one or more years. An NCB protect cover allows you to enjoy NCB benefits even if you have made a claim during the motor insurance policy term. You may, therefore, preserve the discount and save a significant amount of money while paying motor insurance premiums in the subsequent years.
Your vehicle is indeed your prized possession. Hence, enhance your car insurance coverage with various add-ons based on your requirements. Assess the various riders available and choose the ones that offer the best coverage for you.
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