According to the Motor Vehicles Act, 1988, all vehicles plying on Indian roads must be shielded with a minimum level of insurance against mishaps occurring due to the negligence of other drivers. This is more commonly referred to as third-party liability insurance.
With a plethora of car finance options available in the market today, every urban household in India has a car, or is planning to buy one. As a result, general insurance providers now offer a wide range of coverage options to prospective customers. However, as insurance does not cover all aspects of an automobile, insurers provide various add-on riders for specific purposes.
Similar to the riders under life and medical insurance policies, add-on covers on car insurance policies provide extra protection to the vehicle that is insured at an additional cost.
As some of these add-on covers are worth purchasing, let us take a detailed look at them:
24×7 roadside assistance
The insurance company offers round-the-clock emergency services such as towing, refuelling, tyre change, arranging for a mechanic, etc., under this add-on cover. It is recommended to have this add-on as it provides much-needed assistance in the case of an emergency.
Consumable expenses cover
Under this cover, the cost incurred on consumables such as engine oil, gearbox oil, power steering oil, coolant, and brake oil, among others, during post-accident repair is included.
This add-on is especially recommended for a new car because it entitles you to the total cost of repair (of car parts) during an insurance claim. For e.g., suppose the insured value of your car is Rs. 5 lakh. As time progresses, this value will continue to depreciate according to the rules stipulated by insurance regulator IRDAI. If, unfortunately, your car is completely wrecked in an accident or is stolen, say, two years after purchase, the insurer will only pay the depreciated value. With a zero depreciation cover, you can ensure a payout that does not include depreciation charges.
Engine protection cover
Damage to the engine due to water ingression during monsoon or floods or even due to post-accident oil leakage is not covered under a standard insurance policy. The engine protection add-on insures damage to the engine (parts) and gearbox. This is a must-have add-on, especially in areas prone to flooding or heavy rains, as car manufacturers also do not provide warranty on engine damage.
Lock and key replacement cover
It is very human to misplace things, especially keys. With this add-on, the insurance company covers the cost of key replacement as well as the fitting and purchasing of new lock should you lose your car keys.
This add-on provides you with financial support for your daily commute when your vehicle is undergoing post-accident repair. This won’t burden you with additional expenses and help you stay on budget.
Personal belongings cover
Many people are used to leaving their bags, laptops, wallets in their cars. However, this is also an invitation for thieves to break into the car and steal. The personal belongings cover insures your property from theft, robbery, etc. and indemnifies you from any loss or damage to the possessions that you had kept in your car.
Add-on riders as a part of your four wheeler insurance policy provide you with an additional safety net that protects you from unpleasant eventualities. Always assess your insurance needs carefully before opting for an add-on cover.