Daily Allowance add-on cover in motor insurance provides you with a fixed daily sum your car is undergoing repairs at an authorized garage following an accident. This cover is designed to compensate you for alternative transportation costs while your car is not available.

For Example:

• Your car is involved in an accident and requires significant repairs. The authorized garage estimates it will take 7 days to complete the repairs.

Claim Calculation

Daily Allowance cover:

You receive ₹1,000 per day for 7 days = ₹7,000 total.

Choosing the Daily Allowance add-on cover ensures compensation for alternative transportation costs.

Emergency Transport and Hotel Expenses add-on cover provides financial assistance for transportation and accommodation if your vehicle breaks down or is involved in an accident far from your home. This cover is designed to help you manage unexpected expenses when you're stranded due to vehicle issues.

An Example:

Imagine you're on a family vacation, driving to a destination 800 Kms from home. At around 600 Kms, your car suffers a major engine failure and requires extensive repairs that will take 3 days to complete.

Coverage details (assuming):

• Maximum hotel coverage: ₹3,000 per day for up to 3 days
• Maximum transportation coverage: ₹10,000

Claim Calculation

• Hotel stay: ₹3,000 x 3 nights = ₹9,000 (you pay ₹0)
• Transportation (train tickets + taxi): ₹10,000 (maximum limit)

This add-on is recommended for:

1. People who frequently take long road trips
2. Families traveling with children
3. Those who travel to remote areas

The Engine Secure add-on cover protects your car's engine against damage caused by water ingression, leakage of lubricating oil, or damage to internal parts. This cover is particularly valuable for areas prone to waterlogging or flooding, as standard comprehensive policies typically don't cover engine damage due to water ingression.

An Example:

Your car gets stuck in a waterlogged area during heavy rains. Water enters the engine, causing significant damage. The repair costs are as follows:

• Engine overhaul: ₹1,20,000
• Replacement of ECU (Engine Control Unit): ₹40,000
• Labor charges: ₹20,000

Total repair cost:₹1,80,000

Claim Calculation:

• The insurance company covers the full repair cost of ₹1,80,000.
• You might have to pay a small deductible if any applicable.

This add-on cover proves extremely valuable in this scenario, saving you from a significant out-of-pocket expense.

Key Replacement add-on cover provides financial protection against the loss, theft, or damage of your car keys. This cover typically includes the cost of replacing the keys, reprogramming the car's security system, and sometimes even provides locksmith services if you're locked out of your vehicle.

For Example:

You lose your expensive car keys while on a trip. The replacement costs are as follows:

• New smart key: ₹15,000
• Reprogramming the car's security system: ₹5,000
• Locksmith service to gain entry to the car: ₹2,000

Total cost:₹22,000

Claim Calculation

• The insurance company covers the full ₹22,000.
• If you opt for Key Replacement add-on cover you need not pay ₹22,000 from your pocket.

Loss of Personal Belongings add-on cover provides protection for personal items that are stolen from or damaged in your insured vehicle. This cover is particularly useful because standard comprehensive policies typically don't cover personal belongings left in the car.

The following are important points to consider…

1. There's usually an overall claim limit and per-item limit set by the insurer (this varies from insurer to insurer).
2. Some policies may have a list of covered items. Hence, not all personal belongings may be eligible.
3. Proof of ownership and value (like receipts) may be required when making a claim.

No Claim Bonus (NCB) Protection add-on cover is a feature that allows you to retain your accumulated No Claim Bonus even if you make a claim during the policy period. Normally, when you make a claim, you lose your NCB, which can significantly increase your premium for the next year.

This add-on protects your NCB, typically for one claim per year.

An Example:

Let's say you have a car insurance policy which has been in force for 5 years. Further:

• Insured Declared Value (IDV) of the car: ₹5,00,000
• Base premium (without NCB): ₹10,000
• Current NCB: 50% (after 5 claim-free years)

If your car meets with an accident in the 6th year and you make a claim for ₹30,000, the following renewal—if you have opted for the NCB Protect add-on cover—would be:

Next year's premium calculation:

• Your 50% NCB is retained despite the claim.
• So, your renewal premium = Base premium - 50% NCB = ₹10,000 - ₹5,000 = ₹5,000

In this case, the NCB Protection add-on saves you ₹5,000 on next year's premium.

This add-on is valuable for those who have accumulated a high NCB over several claim-free years, as it protects this valuable discount in case of an unfortunate incident.

Pay As You Drive (PAYD) is an innovative add-on cover that calculates your premium on the actual usage of your vehicle, typically measured by the number of kilometers driven.

This cover is designed for people who don't drive their cars frequently or for long distances, allowing them to potentially save on their insurance premiums.

This usually means the insurance company will install a Telematics device in your vehicle to keep track of kilometers travelled.

Pay How You Drive (PHYD) is an innovative add-on cover that calculates your premium not just on how much you drive, but also on how well you drive.

This cover uses telematics technology to monitor driving behavior and rewards safe driving habits with lower premiums.

The insurance company tracks factors such as speed, braking patterns, acceleration, cornering, and time of day when driving.

Repair of Glass, Fibre, Plastic, and Rubber Parts add-on cover provides protection for these specific components of your vehicle without applying depreciation. In standard comprehensive policies, these parts are usually subject to depreciation when calculating claim amounts. This add-on ensures you receive the full cost of repair or replacement for these parts.

It's particularly valuable for:

1. Newer cars with expensive parts
2. Vehicles with a lot of plastic or fibre components
3. Cars frequently driven in conditions that might cause damage to these parts (e.g., areas with frequent stone chips)

Return to Invoice add-on cover ensures you receive the full invoice value of your vehicle in

Case of total loss (TL), theft, or constructive total loss (CTL)

This cover pays the difference between the Insured Declared Value (IDV) of your car and its original invoice price, i.e., on-road price.

An Example:

Imagine you have purchased a new car with the following details:

• Invoice price: ₹10,00,000
• Registration and road tax: ₹1,20,000
• Total on-road price: ₹11,20,000

Claim Calculation:
Having owned the insured car for 2 years, you one day wake up to find that your car has been stolen. After all the formalities required, the Insurance company decides to pay the claim. Since you had opted for the 'Return to Invoice' add-on, your claim amount would be calculated as follows:

• Invoice value of your car: ₹11,20,000
• The present IDV of your car (after depreciation): ₹8,00,000
• Current market value: ₹8,50,000

If you opt for Return to Invoice add-on cover, the insurance company would provide an additional benefit of ₹3,20,000 (₹11,20,000 - ₹8,00,000) and pay you the full invoice value: ₹11,20,000

Roadside Assistance add-on cover provides emergency services if your vehicle breaks down or faces issues while on the road. This cover typically includes services like towing, battery jump-start, flat tire change, fuel delivery, and minor repairs at the breakdown location.

If you opt for Roadside Assistance add-on cover, your insurance company arranges and covers the following:

1. On-site battery jump-start attempt: No extra cost
2. Towing to nearest authorized garage: Covered
3. New battery purchase and installation: You pay, but at a discounted rate through the insurer's network.
4. Taxi to hotel: Covered up to ₹1,000 (you have to pay the balance amount)
5. Hotel stay: You arrange and pay for this up to a certain limit (₹1,000 per night, but the limit varies from insurer to insurer).

Tyre Secure add-on coverprotects against damage to your car's tyres due to various incidents such as cuts, bursts, bulges, or damage from impact with potholes or curbs.

This cover is particularly useful because standard comprehensive policies typically don't cover tyre damage unless it's part of a larger accident.

An Example:

While driving on a poorly maintained road, your 1.5-year-old car hits a deep pothole, causing severe damage to two of your car's tyres.

The damage includes sidewall bulges and cuts, making the tyres unsafe for use.

Repair/Replacement costs:

• Cost of one new tyre: ₹18,000
• Cost for two tyres: ₹36,000
• Wheel alignment and balancing: ₹2,000



Total cost: ₹38,000

Claim Calculation:

Let's assume the policy covers 80% of the tyre cost for tyres less than 2 years old, which means there is a deductible of 20% of the cost of tyres under this add-on.

Insurance covers 80% of ₹36,000 = ₹28,800 (for 2 tyres)

Insurance covers 100% of ₹2,000 = ₹2,000 (for alignment and balancing)

Total coverage: ₹30,800

Your out-of-pocket expense:₹7,200 (20% of tyre cost)

Standard comprehensive insurance doesn't cover this type of damage. If you opt for the Tyre Secure add-on cover, your insurance policy covers ₹30,800 towards the parts. You need to pay ₹7,200 (20% of tyre cost).

This add-on cover is also often referred to as bumper to bumper insurance.

This add-on ensures that the insurance company will pay the full cost of damaged parts without deducting for wear and tear.

An Example:

If you have a 3-year-old car meet with an accident, damaging the bumper and head lights. The expenses for replacing these parts are as follows:

• Bumper: ₹20,000
• Headlights: ₹15,000

Total cost of replacement:₹35,000

The insurance company will apply depreciation to the parts based on the age of your car. For a 3-year-old car, let's assume the depreciation rate is 30% for plastic parts (bumper) and 50% for glass parts (headlights).

Claim calculation:

• Bumper: ₹20,000 - 30% depreciation = ₹14,000
• Headlights: ₹15,000 - 50% depreciation = ₹7,500

Total claim payout:₹21,500

You would need to pay the difference: ₹35,000 - ₹21,500 =₹13,500 out of pocket.

If you opt for zero depreciation add-on cover, the insurance company will not apply depreciation to the parts. You need not pay ₹13,500 from your pocket.