Cover your policy with add-ons

Ad-ons in your policy can help you deal better with out-of-pocket expenses

Motor Insurance is mandatory under law in India. However, the mandatory part is the ‘liability only’ policy that covers death and property damage to third party.

The right policy to buy, however, is the comprehensive insurance policy where apart from the third party, the first party (policy holder) is also insured by the second party — the insurance company. While most people opt for first-party insurance in the form of comprehensive coverage, many a times they take inadequate coverage leading to partial protection at the time of claims.

So, next time you shop around for your car insurance, do not forget to include these important add-ons to your main policy.

This add-on cover provides complete coverage for your vehicle — there is no deduction due to depreciation in the value of the asset due to its usage over the years.

Thus, it is very important to take this add-on feature as depreciation can contribute to a significant portion of your claim amount. However, a claim under this head must be admissible under own damage claim section. Generally, there is a limit to the number of claims you can file under this Add On.

Return to invoice

In case of a theft or when the vehicle is damaged beyond repair, this add-on, if opted, helps you get the difference between the invoice value of a new vehicle and the insured declared value (IDV) on the policy document. You will essentially get the price to buy a new vehicle as on date. Moreover, the cost of registration, road tax and insurance is also generally included in this cover.

Engine protection cover

Normally, insurance companies do not cover damage to engine and its parts due to cranking in case of water ingression.

Taking an engine protection cover makes you eligible for such a protection, depending upon the policy terms and conditions. Taking this add-on makes you eligible to claim for cost of consumables such as engine oil, gear box oil, lubricating oil, etc.

While this may sound technical, it is important to take this as consumable items make up a portion of the final claim amount. If a claim is not admissible under own damage claim, it is not admissible here too.

Going on a long drive but stuck with a flat tyre? Or a battery that won’t start?

Road-side assistance

Road-side assistance cover will help you. It will provide you with towing, breakdown support, fuel supply, etc. In these situations, it is comfort more than money that is of paramount importance to the customer.

Generally, some exclusions like earthquake, riots, strike, nuclear war, etc or when the vehicle is used for rallying, or racing are excluded from the services provided under this add-on. So, to sum it up, best protection happens when you take the correct set of add-on features according to your vehicle type, driving behaviour and risk appetite. is online insurance platform founded by a group of industry veterans.

Writer is the Chief Marketing Office, RenewBuy

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