What are the benefits of add-on covers in motor insurance?

What are the benefits of add-on covers in motor insurance?

This add-on cover compensates you for the cost of hiring an alternative vehicle if your car is stolen or is under repairs. The amount could range from Rs 500-100 per day, depending on the car model. The number of days for which the allowance is handed out can range from 10-15 days.

What is the benefit of NCB in insurance?

No Claim Bonus or NCB is a reward given by an insurance company to an insured for not raising any claim requests during a policy year. The NCB is a discount ranging between 20\%-50\% and is given to the insured while renewing a policy. The NCB discount is offered on the premium amount during renewal.

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What is NCB retention certificate?

What is it? NCB certificate is a proof of the NCB percentage that you earned all the years. Once you sell your car, it helps you get discounts on premium when buying a policy for the next car. Even if you transfer the ownership of your policy to that person, the NCB is non-transferrable to the buyer and stays with you.

What is NCB protection in HDFC Ergo?

NCB protection: For every claim free year, you are eligible to receive a discount of up to 20\%-50\% on car insurance renewal in the form of a no claim bonus. A single claim in a year can make you lose out on the no claim bonus and you will instead end up paying a higher premium at the time of renewal.

What do you mean by add-on cover?

Under car insurance, an add-on cover is referred to as an additional cover that can be purchased by a car owner to strengthen the coverage level of his/ her car. It helps a car owner to enhance the financial security of a car over and above the standard policy coverage.

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What is zero DEP add-on cover?

A zero depreciation add-on cover can be availed for brand new vehicles and also can be opted for at the time of policy renewal. In a zero depreciation​ car insurance​ policy, the entire claim amount is paid by the Car Insurance Company without considering the depreciation on the value of the car.

What is NCB retention cover?

This add-on is for any private car which is 2 years old or above. With this add-on, you can retain your earned No-Claim Bonus (NCB) percentage, even after you’ve made a claim. Without this additional cover, the NCB would drop to 0\% if you’ve made a claim in the previous car insurance policy period.

Can you transfer NCD to another car?

Transferring NCD to a new car You can transfer your NCD to another or new car, but you’ll need to provide proof of how much NCB you’ve built up. You just need to ask the new insurer what evidence they need. Normally it should be provided by your existing insurer.

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On which amount NCB is calculated?

How is NCB Calculated? NCB is calculated on the amount of your car insurance premium starting from the second year. It usually begins with a 20\% discount on the premium and subsequently goes up with each consecutive claim-free year.

How do I work out my no claims discount?

The amount of discount is calculated by reference to the number of years that you have driven a vehicle without making a claim on your car insurance. For example, if you have been driving for four years and have not made a claim on your car insurance during that time, you will have accrued four years’ worth of NCB.