Finance

What Different Types Of Add-Ons Can You Avail For Your Car Insurance Policy?

An add-on cover is a convenient supplemental coverage benefit that is provided by the insurer to the policyholder to increase the coverage of his or her vehicle in the context of four-wheeler insurance. Beyond the basic policy coverage, it helps a car owner in enhancing the financial security of a vehicle by paying a fraction more than the usual car insurance prices.

Add-on covers are more expensive because they extend an insured vehicle’s coverage in more ways. A car owner must pay an additional premium amount to add coverage to his or her auto insurance policy. As a result, adding additional coverage will raise your auto insurance price.

Add-on coverage options for car insurance

Car insurance companies in India deliver a variety of add-on car insurance policies. Here are a few examples of the multiple add-on coverage options available under a comprehensive or standalone own-damage car insurance policy:

• Depreciation-free coverage

With Zero Depreciation cover, a car owner is entitled to make a larger claim because the cost of depreciation on the vehicle’s components is shared. It ensures that while paying the claim amount at the time of claim settlement, the cost of depreciation is not deducted. This supplemental insurance, which is also referred to as bumper-to-bumper or nil depreciation, is typically offered for vehicles under five years old. You can use a car insurance premium calculator to calculate the estimated costs of premiums. *

• Engine cover protection

Any loss or damage to the engine of the car due to problems like water intrusion, electrical or mechanical failure of the engine, oil leak, etc., is covered by the engine protection cover. In addition to these, it offers financial assistance for the engine or component replacement of the vehicle. The engine protection insurance, however, is only presented to vehicles that are less than five years old, much like the zero depreciation cover. *

• No claim bonus insurance coverage

The NCB of a car owner offers protection by a No Claim Bonus Protection insurance even if they file a claim for four-wheeler insurance. Using the NCB, car owners are able to lower their premiums whether or not a claim was filed. The NCB protection cover solely applies to the own-damage premium since the IRDAI, or the Insurance Regulatory & Development Authority of India, determines the third-party share of the premium, and it cannot be changed. * #

• Cover for roadside assistance

In the case that a covered vehicle breaks down in the middle of the road, a roadside assistance policy covers any on-road assistance services that the car owner may receive. A mechanic is dispatched to look at the car and offers service with just a phone call to the insurance company. *

• Return to invoice cover

Even in the event of a disastrous loss, the insured car’s depreciation that has happened over the years will prevent the owner from obtaining the invoice value. Here the Return to Invoice add-on cover is of importance.

In the case of a total loss, or theft of the vehicle, the Return to Invoice cover enables the vehicle owner to obtain the invoice value of the vehicle same as the claim amount. The IDV of a car is set at the price at which the car was bought with this add-on cover. *

• Passenger cover

In case of an accident, the Passenger Policy add-on cover pays for any medical costs that may be borne by the passengers of the insured vehicle. It contains the cost of hospitalisation, medical care, ambulance fees, and so on, which are never included in a four-wheeler insurance policy. *

* Standard T&C Apply

# Visit the official website of IRDAI for further details.

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.


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