A basic car insurance pays only for the Depreciated Car value in case of theft or damage total loss. Auto insurance also offers risk coverage towards damage caused to third party or property. As per law, auto insurance is mandatory in India. There are two types of auto insurance – Third Party Cover and Comprehensive Cover.
Under a third party cover, you would get risk coverage only for damages to third party or third party's property. Whereas under comprehensive cover, you would get risk coverage towards loss or damage of your vehicle in addition with benefits of third party cover. A basic comprehensive car insurance includes damage to your car, loss and theft of vehicle as well as third party cover.
However, by paying little extra as your
car insurance premium, you can avail some additional benefits towards your auto insurance. These additional covers are called add on covers in motor insurance and are optional.
Take a look at some of the add-on covers in car insurance at Reliance General Insurance offers:
Nil Depreciation: At the time of a claim settlement, the insurance company calculates depreciation on certain parts of your car. This results to less claim amount. However, if at the time of buying your auto insurance if you include Nil Depreciation cover in your policy, you would probably get full claim amount.
Total Cover: A basic car insurance pays only for the Depreciated Car value in case of theft or damage total loss. Road Tax, Registration Cost and Insurance premium together form about 15%-20% of the total On Road Cost, which does not get reimbursed if your car is stolen or damaged beyond repair. But a total loss cover takes care of such financial requirements. Reliance's Private Car insurance offers Add-on covers which includes the value of Road Tax, Registration Cost and Insurance premium.
In the event of Total Loss, due to Accident or Theft, a value proportionate to such costs would be reimbursed.
No Claim Bonus Retention Cover: It is an Add-on cover which is offered by RGI with Private Car Insurance policy. This cover ensures that in an unfortunate event of a Single claim for a sum value not exceeding 25% of the IDV of vehicle, your current No Claim Bonus stays unaffected while renewing with Reliance General Insurance.
e.g. If you have earned 20% NCB on your previous year policy and your vehicle IDV is Rs 10 lakh. if there is any claim which is upto Rs 2.5 lakh, you are still eligible for 20% NCB if renewed with RGI.
Including add-on covers in your motor insurance policy might require few more pennies from your pocket, but it would mean a complete financial security towards loss or damage of your car.