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Occasional Contributor
Asma Bagdadi
Posts: 16
Registered: ‎28-08-2017

Who can opt for the additional cover in motor policy?

Who can opt for the additional cover in motor policy?

2 REPLIES 2
Occasional Contributor
PJyoti
Posts: 17
Registered: ‎30-05-2017

Re: Who can opt for the additional cover in motor policy?

Asma,

 

Additional coverages like Zero Dep, Return to invoice, Cost of consumables etc can be opted while buying Motor Insurance policy.

 

There are few restrictions though, like some insurance comapanies dosnt not provide Zero Dep to vehicles above 5 years age. 

Contributor
Ragini Khanna
Posts: 39
Registered: ‎09-06-2017

Re: Who can opt for the additional cover in motor policy?

Some more optional added benefits are available and can be opted by policyholders:

Zero depreciation
Probably the most commonly recommended add-on, this cover entitles you to claim the full cost of replacing car parts damaged in accidents without having to pay from your pocket. As per standard motor insurance policies only the depreciated value of car parts is reimbursable and not the replacement value. Typically, insurance companies deduct a value from your claim before making the payout as they factor in standard depreciation, which is the loss in the value of car parts with time.

Engine Protect
This add-on is considered particularly relevant for owners of brand new high-end cars and is normally available for cars that are up to three years of age. Essentially, Engine Protect or Machinery Breakdown cover compensates for even those engine-related repairs that are not related to accidents. It could be particularly useful for those living in Mumbai where frequent water-logging during the monsoon increases the chances of damage to the engine. However, this add-on insurance cannot be claimed for damages due to regular wear and tear or negligence on your part.

Return to invoice
Buying a Return to invoice cover will ensure that in case of total loss or theft of your car, you will get the original invoice value, including registration charges and road tax paid, of the car and not just the insured declared value (IDV). In simple terms, IDV is the market value of your car which depreciates with time. Such add-on plans pay the difference between the approved claim amount for your car and the original purchase (on road) price of the vehicle in case of total loss. However, if the same model is available at a price lower than the original purchase price, the former will be taken into account.