Insurance Wide choice of add-on covers v/s buying a bundled policy
Customised motor insurance offers you coverage that is best for you and your vehicle.
We live in a time where customisation is the norm rather than the exception. From customised clothes to customised homes to even customised automobiles, personalisation is the way to go. And unlike decades ago, customisation is not just for the rich and uber. Today, everybody from a young professional who has recently started working to a college student who survives on pocket money owns something customised or personalised. Contrary to what people believe, customisation is not expensive; in fact, you only buy things that you need as per your requirement and wallet. The same logic also applies to motor insurance. Customised motor insurance offers you coverage that is best for you and your vehicle.
An Example To Showcase Customisation In Insurance
One shoe does not fit all. The motor insurance policy that works for your friend or even one of your family members may not work for you. Let’s look at an example. Raj has recently purchased a new SUV, in which he plans to go on road trips to nearby cities every weekend, and Saurabh his friend has purchased a four-year-old used hatchback and does not travel outstation with his car. Since Raj’s car usage is so different from Saurabh’s, the insurance need too would differ.
As Raj’s SUV is new, he should ideally opt for the Zero Dep, and that’s what a regular aggregator might suggest. However, along with Zero Dep, Raj should also consider enhanced personal accident and personal belongings add ons, because he goes on road trips and he is more prone to accidents and non-safe parking spots.
Saurabh on the other hand may be forcefully bundled with the highest costing add on - Zero Dep and he may never be able to claim for Zero Dep on a four -year old used car.
To infer, Raj’s SUV might need enhanced policy coverage with a different set of add-ons (riders) than Saurabh who owns the used hatchback. Hence you should customise your comprehensive motor insurance policy by choosing from the various add-on covers, which offer enhanced protection for you and your vehicle.
All You Need To Know About Customizable Add-Ons
Here are some add-on covers you can opt for to customise your motor insurance policy
No Claim Bonus Secure: Your motor insurance policy accumulates a discount referred to as No Claim Bonus (NCB) if you did not make any claims during the policy year. This discount keeps increasing with every claim-free year, which can go up to 50 percent. However, even if you make one small motor insurance claim, you stand to lose all the NCB benefits that you may have accumulated over the years. This is where a “No Claim Bonus Secure” rider would be helpful. With this add-on, you can make one motor insurance claim during your policy year and still retain the NCB discount.
Engine Protector: An engine protection cover in motor insurance keeps you financially protected against any repair cost in case of a damaged engine and/or its parts. A comprehensive motor insurance policy does not usually cover the damages incurred on the vehicle’s engine or its parts like crankshaft, piston, pins, cylinder, gearbox, etc. Having an engine protection cover provides a financial protective shield against the damages that may incur to the vehicle's engine because of leakage of lubricating oil, wate ingression, hydrostatic lock, etc.
This add-on motor insurance cover is especially beneficial to you if you live in a flood-prone/ water-logging prone area. If you have the engine protection add-on cover, your motor insurance provider will pay for the damage caused to your engine due to water or oil leakage. This might help you save lakhs of rupees.
There are several other add-on covers you can choose from such as New Vehicle for Old Vehicle, Enhanced Owner/Paid Driver/Occupant Passenger Cover, Personal Belonging Protector, Key and Lock Replacement among others to enhance your coverage.
Your customised motor insurance policy should be such that it provides you the best coverage at the most affordable price.
Authored article by Vijay Sinha MD & CEO, COCO by DHFL General Insurance