Cn Autov

Most vehicle-owners consider auto insurance as a recurring annual expense, especially with third-party insurance being mandated by the Motor Insurance Act. However, the benefits of auto insurance and the add-on covers are only realized by the insured when their vehicle meets with an accident. To ensure complete peace of mind to vehicle owners, insurance companies today offer a variety of add-on covers that come with multiple benefits.

1. Zero depreciation add-on cover:

It is a highly popular add-on cover provided by auto insurance companies. It ensures policyholders receive full claim of the repair cost of the vehicle that is incurred due to an accident. The zero depreciation cover is usually offered for new vehicles or till the vehicle is three-year-old. The premium of this add-on cover increases as the car gets older. This add-on cover proves beneficial for the policyholders, as they are able to receive full claim without any consideration of depreciation factor of parts that are replaced after an accident.

2. Personal accident add-on cover:

This add-on cover is also quite vital as it can be taken for the owner of the vehicle as well as for the employed driver. In case if this add-on cover is taken for the vehicle that is driven by the owner itself, then the nominee is entitled to receive 100 percent claim in case of death. While in case of permanent loss of arms or legs, the policyholder is also entitled to receive 100 percent claim depending on the sum assured. However, no claim can be made by the insured if the owner or driver driving the vehicle at the time of the accident does not hold a valid license. This add-on cover can be taken for only one vehicle even if the owner has multiple vehicles. Policyholders with this add-on cover also receive coverage for loss or theft of personal belongings locked inside the vehicle.

3. Road-side assistance add-on cover:

This is also an important add-on cover offered at quite a nominal cost. It provides policyholders with immediate help and assistance in case of either car breakdown or accident. With this add-on, the insurer just needs to make a call to the helpline number of the insurance company and they will be immediately assisted for help. In case of minor repairs, the vehicle will be immediately repaired on the road and the insurer will have to bear the cost of spare parts if it is changed. This add-on cover also provides coverage of replacing a flat tyre, alternate key, towing vehicle, alternate battery, alternative vehicle arrangements, and emergency fuel arrangements. In case of availing alternate keys of the vehicle, the insured need to submit an identity proof.

4. Engine cover:

This add-on cover is ideally recommended to vehicle-owners, who reside in areas that receive heavy rainfall. This is because a vehicle’s engine is more prone to damage during monsoon due to waterlogging. Damage caused to the hydro-static lock is a prime cause of engine failure that mostly occurs due to repeatedly trying to run a moist engine. The engine repair cost is not covered under a regular motor insurance policy so by availing this cover, vehicle owners will save a good amount of money. However, the policyholders need to keep in mind that this cover will not be applicable if the vehicle has not been driven as per the laws and regulations of the Motor Vehicle Act.