It is an established fact that purchasing Car Insurance is mandatory for all the registered motor vehicles in India. This insurance covers any unforeseen loss or damage to your vehicle and also protects you from injuries during an accident involving your vehicle. In addition to this, one of the biggest advantages of car insurance is its tax-saving benefits since by law, car premiums are eligible for a deduction under section 80C of the Income Tax Act, 1961.
The following article will discuss how a basic risk coverage that comes free with every New India insurance policy can be customized as per individual’s requirement:
It has been seen that various people have different requirements while buying a car insurance. Some may just want to insure their cars without including themselves i.e. the policyholder, some may want to make sure that their car is covered even if they are not driving it and also some may need a cover for third-party legal liabilities in case of an accident. All these various requirements can be fulfilled with New India’s Car Insurance Policy by choosing from the various add-on covers available.
The add-ons available under New India insurance plan are:
1) Personal Accident Cover – This option will provide cover for accidental death or permanent total disablement while the vehicle is in motion or when temporarily out of motion due to a road traffic accident while using the vehicle provided that no driver has been specifically excluded from cover. In addition, the insured person will be protected against any other accidental bodily injury, loss of limb or permanent disablement even when not using the New India Insurance vehicle.
2) Personal Accident Cover for Driver – This add-on will provide personal accident cover to a specific driver who has been mentioned by the policyholder while purchasing this add-on. In addition, it will also provide accidental death or permanent total disablement while using any other vehicle provided that no other driver has been specifically excluded from this cover and that the use is in line with the permission given by the New India Insurance.
3) Third Party Legal Liability – This add-on provides cover against third party legal liabilities arising out of an accident causing damage to person or property of others within India under relevant Motor Vehicle Act. In case the policyholder is found at fault, the insurer’s legal team will represent him/her in court. The cover also covers injury to passengers and damage to property of others within India because of an accident involving the insured vehicle by New India Insurance.
4) New Vehicle Discount – This option gives a new car owner an assured benefit for brand new cars added to the policy. The premium shall be discounted by 10% during first 3 years from date of registration or purchase of brand new vehicles subject to not more than 12 payments being delayed after date of registration or purchase, regardless of whether additional premium has been paid or not.
5) Replacement Repairing Benefit – New India’s Car Insurance Plan offers you an option where if your car gets stolen or damaged and cannot be repaired, you can claim a brand new car as replacement.
6) Car Stand Cover – This covers the insured vehicle against theft or damage while standing at the insured’s residence/office/garage even if no cover for this is provided under your home insurance policy. The stand must have been purchased from New India Assurance Company Ltd only and have been declared to the insurer at time of buying this add-on.
7) Car Hire Benefit – Under this option, a substitute vehicle will be arranged by the insurer during temporary vehicular disability due to accident or theft of an insured vehicle. In case a rented vehicle is used instead of the insured one, premium for rented vehicle shall not be chargeable in respect of additional features other than basic cover.
8) Personal Accident Cover while on Hire – This add-on will provide personal accident and legal protection to the policyholder and his/her dependents in case of accidental death or permanent total disablement while using a rented vehicle.
9) Car Rental Benefit – Under this option, a substitute rented vehicle will be arranged by the insurer during temporary vehicular disability due to accident or theft of an insured vehicle. In case a hired vehicle is used instead of the insured one, premium for hired vehicle shall not be chargeable in respect of additional features other than basic cover.
10) Right to Purchase Additional Vehicles – This add-on gives an opportunity to buy more vehicles by New India Insurance.