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How Motor Insurance Add-on Covers Can Benefit You


Add-on covers for added coverage to add value addition to your car

It was monsoon season when one of my friends who was driving his three-year-old BMW on flooded streets of Mumbai met with an accident damaging windshield, bumper and hood of the car. As the streets were waterlogged, he tried to start the car resulting in hydro-static lock. He was more than 100 kms from his city of residence and car repair took more than 12 hours so he rented a hotel room till the car was repaired.

Thanks to the insurance advisor who recommended him the Drive Assure- Economy plan of Bajaj Allianz which saved from him having to shell out expenses from his pocket. Expenses for repairing the car amounted to more than Rs. 1.70 lacs, 40k for damages in plastic parts and 1.3 lacs for metal parts. If he would have taken a normal comprehensive policy, insurance company would have paid Rs. 53,000 keeping in consideration the age of car and deprecation of rubber/plastic and metal parts. But luckily he had taken Drive Assure – Economy Plan wherein he received a claim of 1,69,500 after subtracting compulsory deductible of just Rs. 500/-. Not only this, he was also paid for the damages caused to internal parts of engine due to hydrostatic lock, towing charges and even hotel accommodation charges of Rs. 2000.

Benefits of Add-on Covers in Motor Insurance

Above scenario is a clear indicator of how taking add-on covers in your motor insurance policy can help you in saving money along with other additional benefits that minimize out-of-pocket expenses and provide complete peace of mind. In this modern era, taking a normal motor insurance without add-on coverages is no longer a wise choice. Insurance companies are coming up with innovative add-ons so as to cater to the needs of the customers to create relationship beyond insurance.

Let us take a look at the major add-on covers available in the market that adds extra protection which is always necessary and desired by everyone:

Depreciation Shield: This cover is becoming a standard cover for new cars nowadays owing to the fact that insured will receive full claim amount without taking in consideration the deduction caused by the depreciation on value of parts replaced.

Engine Protector: This covers consequential damage to the engine parts arising out of water ingression (hydrostatic lock in engine due to water entering the engine), common in flood-prone areas. Not only this, it also covers damage caused to gear box due to leakage of oil.

Key and Lock Replacement Cover: In case of irrecoverable loss of keys, you shall be indemnified for the cost of replacement of keys. In case of security risk, the cost of installing of new locks is borne by the company.

Conveyance Benefit: You can get per day cash benefit, if the vehicle is rendered unusable due to repairs required to be undertaken in a workshop.

Personal Baggage Cover: Insured is indemnified in respect of the loss or damage to the personal baggage whilst kept in the insured vehicle and caused by the insured perils covered in the policy.

Accident Shield Cover: Occupants of your car are compensated for death and/or permanent total disability arising out of an accident while traveling in your car. This is over and above the PA cover in standard policy.

Vehicle Replacement Cover: If insured meets with total loss (including theft), insurer will replace the car with new equivalent car.

Consumables cover: Under this cover, the cost of consumable required to be replaced or replenished like engine oil, gear box oil, coolant, nut, bolts and items of similar nature are also covered.

24*7 Spot Assistance: This cover offers wide range of innovative services. If the insured vehicle is immobilized due to a flat battery, flat tire, mechanical and/or electrical repairs, arrangements are made to make the insured vehicle mobile again. Not only this, but even towing facilities, urgent message relays to the specified persons, medical co-ordination, fuel assistance, accommodation benefits, taxi benefits and legal advice is also covered under 24*7 Spot assistance cover makes it a hot pick.

This article has been authored by Mr. Adnan A. Bhat, Senior Relationship Manager with our Corporate Marketing channel.

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Published on:25 Aug, 2014

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