Just to save a few rupees for parking the vehicle, one could put a highly expensive vehicle at risk, as was the case with Vivek. Besides, losing a brand new vehicle because of carelessness or any reason for that matter can take a person through a tumultuous ride, especially in the absence of a proper insurance. As per data released by the National Crime Record Bureau (NCRB), auto-thieves have mostly targeted private vehicles. In last year alone, a total of 28,664 private vehicles were stolen in 75 districts of UP.
It is no rocket science that driving a car involves dangers because not all that happens is under everyone’s control. However, what one can control is to observe all traffic rules and stick to the basics.We believe having auto insurance is essential and the above story is a clear use case that adds teeth to our argument.Insurance alone might not always be enough to handle the aftermath of an accident-like situation or a vehicle theft.
Extra protection is available in the form of an add-on car insurance coverage. As they say, it’s always better to have an extra layer of protection in regards to securing expensive investments.Some people consider vehicle insurance as a recurring annual expenditure. But, the above story of Vivek vindicates our assertion that insurance has far more dimensions than one could have envisaged.
There exist many general insurance companies in India, which provide an array of add-on covers, offering several benefits to vehicle buyers. Such add-ons have become a vital cog of the vehicle insurance paradigm. Given below is a short gist of some of the popular add-on covers offered by general insurance companies in India:
- Zero Depreciation Cover
It is the most popular add-on cover, which ensures that the policyholder can claim benefits such as replacing auto parts after an accident. The majority of insurers provide zero depreciation cover for the first three years from the time of buying a new vehicle. The car insurance premium for zero depreciation cover will increase as the vehicle gets older.
- Personal Accident
This vehicle insurance add-on covers the owner or the driver if he is employed. A policyholder’s nominee will receive 100 percent claim benefits in case of demise.The insured will get 100% claim based on the sum assured in case of permanent loss of legs or arms. But, if the owner or the driver does not own a valid driving license, then no claim amount is payable.
- Break-down Assistance
At a very affordable cost, it takes care of the car in case of an accident or a car breakdown. The insured just need to call a helpline number of the insurance company and they will reach you.Generally, the towing assistance for the vehicle to the nearest garage is available within a radius of around 25 kilometers. Some insurers even offer daily cash benefits to cover conveyance expenses in case of a vehicle breakdown, while the car is undergoing repair.
- Engine’s cover
The cover is designed to give protection to the engine, especially during flood situation. Since water logging is a common occurrence in most metros, vehicles experience engine failure, owing to the hydrostatic lock. However, any damage due to hydrostatic lock when one repeatedly tries to run a moist engine is not covered.
The policyholder must know that add-on covers will not be applicable if the covered vehicle is used for racing or is not being driven as per the Motor Vehicles Act.