Must buy these 5 add-ons with car insurance! Lakhs of rupees will be saved in claims

Must buy these 5 add-ons with car insurance! Lakhs of rupees will be saved in claims

by with No Comment Car Review

Your car is not just a vehicle, but your hard-earned money and daily need. Therefore, when you get car insurance, just taking the basic policy is not enough. Road uncertainties, expensive parts, floods, accidents or breakdowns can occur at any time. In such a situation, by choosing the right add-ons while taking car insurance, you can get mental peace along with security of your money.

These add-ons save you from depreciation deductions, extra expenses and emergencies at the time of claim. These covers prove to be very useful especially for users with new cars or those who drive a lot. A little extra premium is charged, but lakhs of rupees are saved in case of claim. Choose these add-ons keeping in mind your driving habits, age of the car and the region. With this, your car will be completely safe and you will be able to drive without any worries. Let us know about 5 such important add-ons.

1. Zero Depreciation Cover

This is the most popular and essential add-on. In a normal claim, the insurance company deducts depreciation based on the age of the parts, due to which the claim amount reduces significantly. With zero depreciation cover, you get the full value and there is no deduction. This is especially beneficial for cars less than 5 years old.

The company bears the entire cost of repairing bumpers, panels or other expensive parts in case of accident or damage. This keeps your financial loss minimal. The premium seems a little high but it proves to be an investment in the long run. Every car owner should give this priority.

2. Roadside Assistance

Emergencies like breakdown, puncture, battery down or running out of fuel can occur at any time on the road. This add-on provides 24×7 support which includes towing, tire change, jump start, fuel delivery and lockout service. This is a life saver especially for those traveling on highways or remote areas. Many companies offer a limited number of free services. Be sure to keep this information in mind while purchasing an add-on.

3. Engine Protection Cover

The engine is the most expensive and important part of the car. Problems like water logging, oil leakage or hydrostatic lock are not covered by the normal policy. This add-on covers the cost of repair or replacement of the engine, gearbox and related parts. Mandatory for those driving in flooded areas or on bad roads. The claim process is simple and protects lakhs of rupees. Engine damage is often unpredictable, so this cover provides a strong shield of protection.

4. Return to Invoice Cover

In case of total loss of the car, this add-on refunds the original invoice value (on-road price). This also includes registration, insurance and other charges. You get the full amount instead of less payment based on depreciation or market value. Very useful for those buying a new car. This makes it easier to buy a new car. It provides financial security in case the entire vehicle is damaged in an accident.

5. Consumables Cover

Accident repairs involve the cost of engine oil, grease, bolts, nuts, washers and other consumable items, which are not covered under a normal policy. This add-on takes care of all this. Avoids extra bills at the time of claim. Especially very beneficial in major accidents or parts replacement. It makes the claim process complete by covering small but essential expenses. It makes sense to include this in every insurance policy.

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An accident occurred while leaving the showroom! Will I get a claim or will I lose money from my pocket? Know the rules

An accident occurred while leaving the showroom! Will I get a claim or will I lose money from my pocket? Know the rules

by with No Comment Car Review

The joy of buying a new car is very special for everyone, but imagine what would happen if that shiny car meets with an accident as soon as you step out of the showroom gate? Recently, many such incidents have come to light from different parts of the country, where the vehicle met with an accident within a few seconds of taking delivery. In such a situation, the first question that arises in the mind of every buyer is whether he will get an insurance claim for this loss or not?

As per the law and the rules of the Motor Vehicle Act, the legal responsibility of the vehicle passes to you as soon as you sign the delivery papers. According to the rules, the vehicle can leave the showroom only when its insurance is active. So, technically you should get a claim, but there are some tricky aspects! Come, let us know about these also.

Rules of insurance companies: When is the claim received?

Nowadays, under the rules of the Motor Vehicle Act, no vehicle is allowed to be taken out of the showroom without valid insurance. Most dealers activate Zero Depreciation insurance policy even before delivery of the vehicle.

This means that as soon as the vehicle crosses the threshold of the showroom, its insurance cover starts. If any accident occurs during this period, the insurance company is obliged to compensate for the loss. The customer has to pay only the file charge or a nominal deductible amount prescribed under the policy.

The most important condition is to have the vehicle registered.

Despite having insurance, there is one rule due to which your claim may be rejected and that is the RTO registration of the vehicle. According to the decisions of the courts and consumer commissions, driving a vehicle on a public road without a valid registration number is a legal offense and a serious violation of insurance conditions.

In a recent case, the State Consumer Commission upheld the decision of the insurance company to reject the claim because the registration number of the vehicle was not issued. In such cases, if the dealer has carelessly handed over the unregistered vehicle, then the court can impose a fine on the dealer, but the customer may also have to bear a large part of the loss.

What if the showroom staff is at fault?

Many times, while bringing the car out of the showroom or getting the gate pass cut, the driver or staff of the showroom is driving it. If an accident occurs before the formal delivery process is completed or while the showroom staff is driving, the entire legal and financial responsibility lies with the showroom (dealer). In such a situation, no loss of any kind can be recovered from the customer.

Do these things immediately in case of an accident

If God forbid such an accident happens, then instead of panic follow these legal steps-

  • Notify immediately: Notify your insurance company and dealer immediately after the accident.
  • Gather evidence: Make sure to take mobile photos and videos of the incident site and the damage caused to the vehicle.
  • File an FIR: If third party damage has occurred, then an FIR is necessary for the claim.

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Zero Dep or Own Damage? Which one will be most beneficial to choose while taking car insurance?

Zero Dep or Own Damage? Which one will be most beneficial to choose while taking car insurance?

by with No Comment Car Review

While buying car insurance, many people remain confused as to what should be the basic coverage and which add-ons are beneficial. On-damage i.e. Own Damage (OD) cover and Zero Depreciation (Zero Dep) are two important terms. OD protects against damage caused to your own car, while Zero Dep eliminates the depreciation deduction on parts at the time of claim.

Nowadays, in view of the rising repair costs and inflation of parts, it is important to make the right choice between the two. In this article we will understand the difference in detail. Claim process, premium impact and also which option is better for you? By choosing the right insurance, you can avoid unnecessary expenses and get complete protection.

What is Own Damage Insurance?

Own Damage cover primarily provides protection against damage caused to your car. This includes road accidents, theft, fire, natural disasters (flood, earthquake), riots etc. It can be purchased along with third party insurance and is also available as a standalone OD policy.

In OD cover, depreciation is deducted on the cost of parts at the time of claim settlement. For example, the reduction may be 50% on plastic/rubber parts, 0-50% on metal parts depending on age. Labor charges are usually full, but parts costs are reduced. For older cars or those looking for a budget-friendly option, the OD offers basic safety. As per IRDAI regulations, it is available in standalone form from 2019.

What does Zero Dep mean?

Zero Depreciation is an add-on cover taken with an OD or Comprehensive policy. This is also called bumper-to-bumper or Nil Depreciation. In this, there is no depreciation deduction on the parts replaced at the time of claim. Meaning, the insurance company covers the entire bill (after certain deductibles).

This is especially beneficial for new or luxury cars, because parts are expensive and the amount of depreciation can be high. Generally it is available for cars up to 5 years old. The premium is 15-30% more than the OD premium, but the savings in claims are considerable. The number of claims in this add-on is limited (2-3 claims per). These are the differences between the two-

  • OD is a policy (Standalone), whereas Zero Dep is just an add-on.
  • OD is cheap, Zero Dep is expensive (additional 10-30% cost).
  • Due to deduction of depreciation in OD, claim is reduced, full payout is available in Zero Dep.
  • OD for older cars or low budget ones, Zero Dep better for new/expensive cars.
  • Reduction in OD based on age and parts (eg 50% on plastic), Zero deduction in Zero Dep.

Example: Of a repair bill of ₹50,000, you may lose out on ₹15,000-20,000 in OD, whereas in Zero Dep, almost the entire bill gets claimed.

Which one is right to buy?

This completely depends on the age, value, usage and budget of your car. If the car is new (0-5 years) then it is better to take comprehensive or OD with zero dip. The cost of the additional premium will be covered in just one or two claims. This is necessary in luxury or high-value cars. At the same time, for an old car, only OD is sufficient because Zero Dep can be expensive if the parts are cheap and depreciation is high.

Advice and Precautions

When making a claim, report it within 30 days, otherwise it may be rejected. Also check out other add-ons like engine protection, consumables. Choose the right IDV (Insured Declared Value) as it decides the upper limit of the claim. Always choose IRDAI approved insurance company and read the policy document carefully.

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