Tailor-made car insurance policy: Opt for niche riders for extra coverage options
By Deepak Yohannan
We all know that since motor insurance policies are compulsory in India, everyone who owns a car has a car insurance policy. However, how many of you know features of the plan, whether comprehensive or third party, and in how many ways can it help other than reimbursement for a motor accidental claim?
The recent trend in car insurance industry is to have unique additional features along with a mandatory car insurance policy. Your car could be a hatchback, a sedan or an SUV, you can still customise your car insurance policy in a way that if you avail these features, you would actually stand to gain, even though you might have to shell out an extra amount for premium. There are some niche features that have been designed only to cater to those who take pride in their cars and value it as an asset! Riders are nothing but extra coverage options that help you in making an insurance policy tailor-made for your needs. Basically, by paying an extra amount of money, you buy yourself a host of advantages.
Niche riders along with your car insurance policy
There have been many incidents where insurers refused to pay a claim because the car was damaged when parked in a building for a long time or it was submerged in water. If you have ever come across this situation, you would realise how frustrating it is because insurers mention in their policy exclusions that they have the right to refuse to pay. In both the above situations, an additional rider of hydrostatic cover can be helpful. Insurers provide hydrostatic cover, which covers car damages are caused by a consequential loss.
No claim bonus protection
Usually in a car insurance policy, in case of a claim, you are not eligible for a ‘no claim bonus’ in the subsequent year. However, if this additional rider of NCB protection had been opted for, even if there has been a claim in the previous year, the existing NCB can be retained.
A common area of concern in a claim is mostly the depreciation, which is deducted. The usual wear and tear is not covered in a car insurance policy claim. In such a case, an additional rider of a depreciation cover based on age of the car and type of components can actually save a lot of money.
For example, if a car's metallic part is damaged within 6 months of purchase, then no depreciation is deducted. However, if these are damaged after 6 months and before 1 year, then 5% is deducted as depreciation. That is, only 95% of the claim will be paid here. However, if this rider has been opted for, then there is no deduction for depreciation irrespective of the time of claim!
Simple it may sound, but customising your car insurance policy with these additional features can help you save a lot of money and won’t even pinch your pocket much. As the old proverb goes, a stitch in time saves nine, you can keep these niche features of a car insurance policy while renewal or opting for a fresh one, especially if you are one of those who takes pride in owning your car!
(The author is the CEO of MyInsuranceClub.com, an online insurance price & features comparison portal)
Riders are nothing but extra coverage options that help you in making an insurance policy tailor-made for your needs. Basically, by paying an extra amount of money, you buy yourself a host of advantages.