Motor insurance is a policy that provides financial protection for any damage, theft or loss that may occur to your car or any third-party vehicle. Motor insurance can be divided into two parts – the basic cover and the add-on covers. The basic cover is the minimum required insurance coverage that is legally mandated according to the Motor Vehicle Act, 1988.
Add-on covers are additional coverage options that are provided by insurers and can be availed of by insured individuals as per their needs and requirements. These covers provide additional protection against various risks and losses that are not covered by the basic motor insurance policy.
What are the Different Types of Add-on Covers in Motor Insurance?
Add-on covers in motor insurance may include covers for:
1. Personal Accident Cover
A personal accident cover provides coverage for medical expenses and disability caused due to an accident. The cover also provides financial compensation in case of death of the insured individual. This cover is usually provided as an add-on cover in motor insurance and it provides coverage for the driver and the passengers of the insured vehicle.
2. Zero Depreciation Cover
A zero depreciation cover provides coverage for the depreciated value of the insured vehicle in case of any damage or loss. This cover ensures that the insured individual will be compensated for the full value of the vehicle in case of any damage or loss. This cover is usually offered as an add-on cover in motor insurance policies.
3. Roadside Assistance Cover
Roadside assistance cover provides coverage for any expenses incurred in case of breakdown of the insured vehicle. This cover provides assistance in case of breakdown of the vehicle in terms of towing, repair and delivery of fuel. This cover is usually offered as an add-on cover in motor insurance policies.
4. Engine Protection Cover
An engine protection cover provides coverage for any damage or loss caused to the engine of the insured vehicle. This cover is usually provided as an add-on cover in motor insurance policies and it provides financial protection for any damage or loss caused to the engine due to man-made or natural calamities.
5. Consumables Cover
A consumables cover provides coverage for any expenses incurred in case of repair or replacement of consumable items such as air filter, engine oil, etc. This cover is usually provided as an add-on cover in motor insurance policies.
6. Key Replacement Cover
A key replacement cover provides coverage for any expenses incurred in case of loss or theft of the key of the insured vehicle. This cover is usually provided as an add-on cover in motor insurance policies.
7. No Claim Bonus Protection Cover
A no claim bonus protection cover provides coverage for any expenses incurred in case of loss of no claim bonus due to claim made during the policy period. This cover is usually provided as an add-on cover in motor insurance policies.
8. Return to Invoice Cover
A return to invoice cover provides coverage for any expenses incurred in case of theft or total loss of the insured vehicle. This cover ensures that the insured individual will be compensated for the original purchase price of the vehicle in case of any damage or loss. This cover is usually offered as an add-on cover in motor insurance policies.
9. NCB Protector Cover
A NCB protector cover provides coverage for any expenses incurred in case of loss of no claim bonus due to claim made during the policy period. This cover is usually provided as an add-on cover in motor insurance policies.
Conclusion
Add-on covers in motor insurance provide additional protection against risks and losses that are not covered by the basic motor insurance policy. These covers can be availed of by insured individuals as per their needs and requirements. Some of the most common add-on covers in motor insurance are personal accident cover, zero depreciation cover, roadside assistance cover, engine protection cover, consumables cover, key replacement cover, no claim bonus protection cover, return to invoice cover and NCB protector cover.
