In the event of the payer’s death or permanent disability, you will be covered for life and your premiums will be waived.
What is PB in vehicle insurance?
Policybazaar has launched a new service called ‘PB assurance,’ which ensures that you won’t have any issues claiming cashless care at your local hospital. With this service, your treatment will not be delayed for any reason, including a lack of documentation or a TPA’s refusal to approve a claim.
What is CM PB KP in car insurance?
Engine protection is an optional feature in car insurance. If only the engine of the automobile is damaged, having an engine protection (EP) add-on can assist you get your claim settled. KP in vehicle insurance refers to the protection provided in the event of the loss or damage of a car key. This add-on cover will reimburse the cost of replacing or repairing the keys.
What is ZD KP in car insurance?
A zero depreciation add-on cover, also known as Nil Depreciation or Bumper-to-Bumper cover, is a common automobile insurance add-on cover that is included in the own damage portion of the policy.
What is DP in car insurance?
MainProductImage. In the context of motor insurance, depreciation refers to the decrease in the value of an asset over time as a result of variables such as age, wear and tear, and obsolescence. Vehicles, in general, depreciate with time.
What is add ons in insurance?
The add-on covers provide additional policy coverage that policyholders can purchase for a small additional price. The insurance coverage extension makes it easier for the automobile owner to deal with a variety of problems. Roadside assistance, key replacement, and return to invoice are just a few of the add-ons available.
What is additional coverage ZD?
In the context of car insurance, ZD refers to a Zero Depreciation coverage that covers the wear and tear of the vehicle as well as depreciation fees. In car insurance, ZD is a supplementary policy that is replaced by first-party or comprehensive coverage. As a result, by excluding the depreciation element from the insurance coverage, it aids in providing comprehensive coverage. It bridges the cost gap between the car’s real purchase price and the Insured Declared Value (IDV) at a given point in time.
What is IDV value?
What is the IDV (Insured Declared Value)? The word ‘IDV’ refers to the highest amount your insurer will pay if your car is stolen or is damaged beyond repair. When you buy the policy, let’s say the market worth of your car is Rs. 8 lakh. That means the insurance will only pay out a maximum of Rs.
What is PB KP in car insurance Quora?
KP in automobile insurance refers to the protection provided by an add-on policy for lost or damaged car keys, which will reimburse the cost of replacing or repairing the keys.
What is IDV in 2 wheeler insurance?
We tend to fear the worst when purchasing insurance, and many of us question, “What if my two-wheeler is fully destroyed, irreparable, or stolen?” This is why IDV (Insured Declared Value) is so important.
What is IDV?
The entire value of the covered vehicle determined by the insurer to reimburse the policyholder in the event of irreparable damage or total loss due to accident or theft. IDV is calculated using the manufacturer’s suggested retail price and then corrected for depreciation. The table below shows how depreciation impacts the IDV of bike insurance.
IDV and Premium
On the IDV, the premium rate is applied. The higher the IDV, the higher the price for two-wheeler insurance. As the two-wheeler ages, the IDV lowers, and the premium decreases as well.
When purchasing a two-wheeler insurance policy, the policyholder should be aware that reduced premium rates are occasionally offered to entice clients, but this also means that the two-wheeler will be covered at a lower IDV, and thus its total worth will not be compensated in the event of a mishap. The policyholder must ensure that the IDV is neither understated nor overstated while purchasing insurance.
Apart from IDV, there are a few other terminology linked to two-wheeler insurance that you should be aware of.
Own Damage Premium: This portion protects your car from any impact damage as well as natural disasters such as earthquakes, floods, storms, fires, and other natural disasters.
Zero Depreciation Coverage: This is an optional protection that may be purchased for an additional price. In most cases, depreciation is taken into account while compensating for a loss, but in the situation of zero depreciation coverage, depreciation is not taken into account. As a result, partial losses are better covered.
No Claim Bonus: The insurance provider rewards conscientious police officers with a discount on the renewal own damage premium for the following year if they have had no claims in the previous year.
Third Party Coverage: This coverage protects the policyholder from any financial or legal liability incurred as a result of the accident.
Personal Accident Coverage: Because general insurance covers any damage to the two-wheeler, personal accident coverage accounts for the policyholder’s death or injury in the event of an accident. This coverage protects the policyholder from unforeseeable events that could result in death or disability.
We, at HDFC ERGO, provide the most cheap, comprehensive, and flexible two-wheeler insurance policies with some of the most remarkable features targeted at giving the policyholder with the greatest comfort and peace of mind. Find your two-wheeler insurance rate calculator on our website. With HDFC ERGO, your two-wheeler ride will be fully safe.
Disclaimer: The given information is provided solely for the purpose of illustration. Before proceeding with the sales, please see the policy wordings and prospectus for further information.
What add ons should be taken in car insurance?
Car insurance plans in India come with a variety of add-on coverage options. Consider the following types of add-on coverage available under a comprehensive or independent own-damage car insurance policy:
Zero Depreciation Cover
As an automobile gets older, it depreciates in value. Depreciation of car parts is accounted for by a motor insurance provider and deducted from the car’s IDV. The claim amount is paid by the insurer after the claim is settled, taking into account the applicable depreciation on the car parts. The ‘Zero Depreciation’ insurance will save you in this situation.
Zero Depreciation Policy is an add-on cover that helps automobile owners achieve a higher claim amount by sharing the load of depreciation on the car’s parts. It ensures that depreciation is not taken into account when calculating the claim amount when the claim is settled. This add-on protection is typically offered for cars up to five years old and is also known as nil depreciation or bumper-to-bumper car insurance. Furthermore, some insurers may allow only two zero depreciation claims each year, while others may allow limitless claims.
Engine Protection Cover
The engine is one of the most vital components of a vehicle. Unfortunately, non-accidental damage to the car’s engine is not covered by a standard comprehensive car insurance policy. The ‘Engine Protection’ add-on policy, on the other hand, can cover any damage or loss to the insured car’s engine.
Engine Protection covers any loss or damage to the car’s engine as a result of issues such as water infiltration, oil spills, electrical or mechanical engine breakdowns, and so on. It also offers financial assistance in the event that the car’s engine or parts need to be replaced. The engine protection cover, like the zero depreciation insurance, is only available for cars that are less than five years old.
No Claim Bonus Protection Cover
The No Claim Bonus (NCB) is one of the most valuable aspects of an automobile insurance policy. It’s a discount on the premium given to an automobile owner who hasn’t filed any claims during the previous policy period. NCB allows car owners to save at least 20% and as much as 50% over the course of five years. However, as soon as an automobile insurance claim is filed, the NCB is reset to zero, regardless of how large or small the claim is. With the use of a ‘No Claim Bonus Protection’ add-on policy, this can be prevented.
A No Claim Bonus Protection policy protects a car owner’s NCB even if they file a claim. Even if the car owner files a claim in the preceding insurance year, the NCB remains intact. It allows automobile owners to use the NCB to lower their rate regardless of whether or not they have filed a claim. The NCB protection cover only applies to own damage premiums, as the third party portion of the total premium is determined by the IRDA (Indian Regulatory and Development Authority) and cannot be changed.
Roadside Assistance Cover
A car’s engine can shut off at any time and without notice. You could be stranded in the middle of the road if this happens. Finding a local mechanic can be difficult, and any repair work might be costly. A ‘Roadside Assistance’ add-on cover can be useful in such instances.
In the event that the insured car breaks down in the middle of the road, a Roadside Assistance policy covers the car owner for any on-road assistance services. Simply contact the insurance company, and a mechanic will be dispatched to inspect the vehicle and assist you. Changing a flat tyre, minor on-site repair, car towing, fuel delivery, replacement car keys, battery jumpstart, and other help services are provided under this add-on package.
Return to Invoice Cover
A car’s value depreciates the instant it is sold and leaves the showroom. With each passing year, the car’s value decreases further. When purchasing automobile insurance, the IDV is calculated by taking into account the car’s market value, which will be lower than the purchase price. As a result, even if the vehicle is totaled, the car owner will not receive the invoice value of the vehicle. The invoice value of the car, on the other hand, can be recovered after claim settlement using the ‘Return to Invoice’ add-on cover.
In the event of a total loss, constructive total loss, or theft of an automobile, the Return-to-Invoice cover allows the car owner to obtain the invoice value as the claim amount. The IDV of a car is fixed at the price at which it was acquired with this add-on cover. As a result, with this coverage, a car owner can earn a bigger claim amount. Return-to-Invoice coverage, on the other hand, is only available for cars that are less than three or five years old, depending on the insurance company.
Daily Allowance Cover
When an automobile is sent to a garage for repair, it may take more than a few days. If the automobile owner does not have another vehicle, he or she may have to hire a vehicle or rely on public transportation to get around on a regular basis. This could lead to excessive travel costs. The ‘Daily Allowance’ add-on coverage can aid in this situation.
Daily Subsistence Allowance Cover is an optional coverage that gives a daily travel allowance in the event that the insured car is being fixed in a garage. It reimburses the car owner for any travel expenditures incurred while the vehicle was being serviced. However, this add-on coverage is only valid if the insured vehicle is being fixed at a motor insurance company’s network garage.
Passenger Cover
Car accidents can happen at any time, regardless of how many people are in the vehicle. A major collision can result in damage to the vehicle as well as injuries to the driver and passengers. Unfortunately, the personal accident coverage provided by a standard automobile insurance policy does not cover the passenger’s medical expenditures. This is when the term ‘Passenger Cover’ comes into play.
The Passenger Policy is an optional coverage that pays for any medical bills incurred by the covered car’s passengers in the event of an accident. It covers the costs of hospitalization, treatment, and ambulance fees. It also covers compensation in the event that a passenger is injured or killed as a result of the accident.
Consumables Cover
A lot of consumables are needed when an automobile is being fixed. Nuts and bolts, lubricants, grease, washers, engine oil, brake oil, screw, oil filter, bearing, and so on are examples of these. A comprehensive car insurance coverage normally does not cover the cost of such consumable products. The car owner is responsible for the expense of these consumable items. However, this only occurs if the policyholder does not have Consumable coverage.
The Consumable Coverage is an optional coverage that reimburses expenses for consumable goods used in an insured vehicle during repairs. It covers all consumable items that were used while the car was being fixed. This add-on cover, however, is not available for vehicles older than five years.
Tyre Protect Cover
A car’s tyres are another important component. The car’s tyres might be damaged by frequent use. Unfortunately, if the damage or loss of the tyres is not caused by an accident, the car insurance provider will not pay for it. The car owner is responsible for the expense of fixing or replacing the tyres. The ‘Tyre Protect’ cover can help in this situation.
Tyre Protect reimburses any costs paid for the repair or replacement of the insured vehicle’s tyres. It assures that tyre damages, such as puncture, in-tyre bulge, tyre cut, tyre bursting, and so on, are covered by the vehicle insurance carrier.
Key Replacement Cover
Without its keys, a car cannot function. It’s a vital tool, but it’s also one of the most easily misplaced. Furthermore, if the covered vehicle has an electronic key, getting a new one or having it replaced can be costly. Even yet, a standard auto insurance coverage does not cover the cost of car key replacement. With a ‘Key Replacement’ cover, however, this is not the case.
A Key Replacement cover is an optional coverage that pays for any costs associated with replacing the keys to the insured vehicle. It also covers the expense of repairing the car’s lock-set if the keys are lost, stolen, or destroyed.
Loss of Personal Belongings
In their car, everyone has personal items. However, a few unfortunate individuals lose goods from their vehicle when they leave it unattended or when it is stolen. In either case, the insurance company will not compensate you for the loss of personal property. Unless the automobile owner has a ‘Loss of Personal Belongings’ add-on cover, the car owner is responsible for the loss.
The Loss of Personal Belongings policy is an optional coverage that reimburses you for any personal things stolen from or in the car. It also covers any damage to personal belongings inside the vehicle. It applies to a wide range of personal objects, including electrical devices.
Car insurance is a fantastic way for a car owner to protect themselves from a financial loss caused by the insured vehicle. However, by acquiring add-on covers, the financial protection provided by the policy can be further strengthened. As a result, all car owners should purchase those add-on coverings that are truly necessary for their vehicle’s financial security.