cost a fortune. With water-logging in the rainy season common across India, this add-on can come in really handy.
Return to invoice
With this add-on, the user can get back the full value of the car if it gets totally damaged because of an accident or other reasons. The advantage of this add-on is that the user gets full reimbursement, without the 5% depreciation. The downside: This add-on is usually available only in the first year of buying a vehicle.
No-claim bonus (NCB) retention
This add-on acts like a reward for not making any insurance claim in the last few years. People usually buy car insurance and renew it each year without actually making any claims. The NCB acts as a reward policy by offering discounts up to 50%. Without the no-claim bonus or NCB add-on, even a single claim can bring down the discount to zero, but the NCB add-on allows for discounted protection even after availing a past claim.
Personal accident cover
This add-on can include the owner, the paid driver, or both depending on the insurance company. In case of an owner- driver, a person is entitled to a 100% claim for death or permanent loss of limbs. The downside is that a personal accident cover is not provided if the vehicle is owned by a company, or if the owner does not hold a valid driving licence.
In case of multiple vehicles owned by the same person, the add-on is provided for only one vehicle.
Loss of personal belongings
This add-on allows users to claim any theft or apparent loss of personal belongings, including laptops and electronic equipment, from a locked vehicle. Insurance companies offer a wide range of personal belonging loss claims, which can go up to R50,000.
The writer is CEO, BankBazaar.com