New Generation Motor Insurance
Motor insurance has evolved in many ways over the past 20 years, ever since the privatization of insurance happened in India. We experienced cashless settlements initially, followed by discounting tariffs, and finally, the introduction of the add-on. The consumer has also evolved with time and has started taking his motor insurance seriously. The consumer has benefited similarly in the case of the telecom industry, where we are paying almost one-tenth of the initial tariff with many more features. We are sure the market would witness many more critical changes which would further benefit consumers. With the increased number of Insurance Brokers in India, the variety of products offered by the different Insurance Companies would help customers get the right product at the right price.
Zero Depreciation
Zero depreciation, also known as nil depreciation or Bumper to Bumper car insurance, is a car insurance policy that leaves out the depreciation factor from the coverage, thus giving you complete cover. If your Car gets damaged following a collision, no depreciation is subtracted from the coverage of wearing out any body parts of Car excluding tyres and batteries.
The insurance company will pay out the entire cost of the body part for replacement.
Consumables Cover
The Car's repair takes up a lot of consumables, such as brake fluid, nuts and bolts engine oil, and coolants. The cost of consumables can push the vehicle's repair bill to a significantly higher value. However, if you have this add-on cover, the cost of consumables will be reimbursed by the insurance company.
Engine Protector
This add-on cover protects the heart of your vehicle, its engine. The ordinary comprehensive car insurance policy does not offer coverage for the damages to the engine. Hence, amplifying your motor insurance coverage by purchasing an engine protection cover is very useful for people who reside in areas prone to waterlogging.
Tyre Covers
Usually, damage to tyres and tubes is covered only if the vehicle has met with an accident resulting in damage to the tyres and tubes. Damage to the tyres and tubes without the vehicle meeting with an accident is not covered under the Private Car Package Policy issued to cover your Car. To bridge this gap, an add-on cover, 'Tyre Cover,' will indemnify you for damage to your Car Tyre (s)/Tubes(s) without your Car getting involved in any accident due to the reasons specified below. The cost of repair/ replacement of tyre tube and/or part(s) as applicable,
Due to impact cuts, and bursts.
Due to impact bulging of sidewall excluding manufacturing defect, chemical or atmospheric damages
Flattening of Tyre due to Hard Braking.
The compensation is paid as per the age of the tyre and depreciation is applied on it.
Return to Invoice
This will make sure the insurer gets the original invoice value of the car including the registration and road tax paid at the time of total loss. And such a loss could happen through accident or theft of the car. In short, this add-on covers the gap between the insured declared value and the Car's invoice value. This add-on is not to be used to claim repairs and minor damages. It is used to retrieve the financial loss of a stolen car or Car damaged beyond repair.
NCB Protection
The add on is must for consumers who are enjoying 50% NCB and want to protect the same in case of any claim arising in the running policy. The NCB protection also becomes relevant as you may be planning to sell the vehicle and wants to retain the NCB to avail the benefit of 50% NCB in next vehicle you wish to purchase. This is not important for those who use their vehicle once a month as chances of claims is negligible for such users.
Emergency Roadside Assistance Cover
An emergency road service is a service that assists you when your vehicle suffers from a mechanical breakdown on the road. With this, the insurer provides certain emergency services like refueling, towing, change of flat tyre, mechanic's services and so on in case the Car breaks down. An add-on cover with your car insurance policy is like an additional safety net to protect you from unpleasant eventualities.
The above are some of the features which the Insurance Companies commonly offer. However, each add on should be opted for considering the usage of the vehicle. NIL dep. might not suit for a person who doesn't drive 100 km in a month. At the same time, someone in a marketing job should opt for such an add-on. Therefore, right solution and right package are important for your Motor Insurance based on the usage, model and safety measures available to your Car. One should seek in person discussion with the experts to take appropriate coverages for your car.