List of Motor Add-On covers Proposed to be filed with IRDA
The insurance companies in India offering motor insurance policies need to adhere to the guidelines formulated by the Insurance Regulatory and Development Authority. If you anticipating buying motor insurance, it is of prime importance that your insurance company is registered with IRDA. A motor insurance policy generally includes two-wheeler insurance, commercial vehicle insurance, car insurance, etc. Moreover, as per the Motors Vehicle Act, 1988 it is important to drive a vehicle with a valid insurance plan neglecting to which you may bear consequences likewise it is a legal mandate to own a motor insurance policy for any type of vehicle you own. Read more
Quick Recap of Motor Insurance Policy
Buying a motor insurance policy essentially shields you from against any financial expenses incurred due to any unforeseen mishap/accidents and provides coverage for any loss/damage to the insured vehicle as well as third-party liability. In India, the insurance companies offer two types of motor insurance cover for the owners of the vehicle.
A comprehensive motor insurance policy provides extensive coverage to the insured vehicle and is liable for third-party as well. Whereas if you wish to buy only a third-party liability policy for commercial vehicles the damages for third-party will only be covered. Moreover, buying third-party liability insurance is a legal mandate for all registered vehicles in India.
Today, living in a time where you have a plethora of alternatives available in the market who are not only offering standard covers besides optional add-on covers by paying an additional premium amount.
Buying an add-on cover helps your insurance policy to serve and protect in a much better way. Depending on the type of vehicle, you own which could be a car or commercial vehicle availing an add-on cover saves big time on your pocket, which you may have had to pay from your pocket in otherwise at the time of claims.
List of Motor Add-On covers Proposed to be filed with IRDA
It is to be noted that add-on cover may differ from one company to the other company. The following is a general list of add-on covers available under a motor insurance policy you may avail depending upon your prerequisites:
Insurance at Manufacturers Selling Price
This add on cover is accessible to all class of motor vehicles like a two-wheeler, commercial vehicle, etc. On the off chance that you wish to avail this cover, at that point, your vehicle should not be older than 60 months, which will be tallied from the day of registration of your vehicle or the date referenced in the invoice. The distinction between the insured declared value and the selling cost of the manufacturer will be the aggregate sum insured for the add-on.
This extra spread is accessible to all class of engine vehicles like a bike, business vehicle, and so on. On the off chance that you wish to benefit this spread, at that point, your vehicle ought not to be more seasoned than 60 months, which will be tallied from the day of enlistment of your vehicle or the date referenced in the receipt. The distinction between the protected proclaimed worth and the selling cost of the maker will be the aggregate guaranteed for the extra.
This add on cover is easily available to all class of vehicles on plastic/nylon/rubber etc. parts in case of any damage/loss. Within this add-on cover, there are different plans which you may opt depending on the possible circumstance you would need the cover.
Daily Cash Allowance
In case if you two-wheeler or your commercial vehicle, etc gets stolen or is under repair availing this add-on cover will provide you compensation for hiring any optional vehicle. The amount would vary depending upon the model of the vehicle besides the compensation is provided basis specific number of days and other terms and conditions mentioned in the policy schedule. You may not be able to benefit this cover if your vehicle is not being repaired at an authorized garage, etc.
No Claim Bonus
A policyholder can benefit from the status of no claim bonus only when they have not filed for any claim in the year. Contingent upon the company, NCB mostly initiates at 20%, which might be expanded every year with every claim-free year to half at the maximum. While opting for this cover it is prudent to go through the policy document carefully. Buying this cover is beneficial as it gives you the window to retain you have assembled no claim bonus even if there is a claim supporting you to preserve the markdown accessible on the resulting year’s premium.
This add-on cover, which is recommendable to all the vehicle owners as to when in an accident the parts of your vehicle get, damaged you are entitled to claim the complete cost of replacing the same. Please note the depreciated value of your vehicle will be reimbursed and the not value of the replacement.
As you know, eventualities do not come knocking. This add-on covers benefits you get round-the-clock assistance in case of an emergency, for example, towing, flat tyre, mechanical breakdown, etc.
Cover for Consumables
This cover is beneficial when your vehicle meets with an accident and you are looking forward to compensation for the money spent on engine oil, bearings, nuts and bolts, etc. Generally, the insurer will make a payout for the value of such consumables of your vehicle.
In the End
Before you zero down two-wheeler insurance or commercial vehicle insurance it is of utmost importance to spend enough time and comprehend the intricacies the policy has to offer.
An add-on cover is safety net to shield you from uneventful eventualities. Do not opt for add-on covers just because somebody has recommended it or you need to join the bandwagon rather assesses your prerequisites and choose your add-on cover. Moreover, it is not obligatory to include all the add-on cover that is referenced above, include any of these according to your requirement.
Remember add-on covers come at an additional cost subsequently choose a cover wisely!
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