In Indian families we purchase a four wheeler vehicle after a lot of research, comparisons, test drives, discussions and planning, it is not just a vehicle which we use for commute but actually is like a dream come true when we get the delivery of our favorite car.
Some of us also give us pet names to our dream vehicle. Before the vehicle delivery we also plan for the accessories and fitments of our choice. Before even getting the delivery of the car from the dealer we need to procure insurance for the vehicle.
Car insurance is mandatory as per motor vehicles act that any vehicle plying on Indian roads should have a valid third party liability insurance from a recognized insurer before we can take out our vehicle on any road of our country. Not only the third party liability section the own damage cover is equally important, although not mandatory.
A comprehensive insurance cover is very much advisable from day one of the ownership of the vehicle, and is continually to be renewed in coming years.
Keeping in mind the penchant of Indian consumers towards new and latest cars, high number of sales in both private and commercial vehicles segment, mandatory nature of the third party liability, motor insurance becomes the highest premium contributor in the non-life segment.
In this article we are going to discuss about the bumper to bumper insurance of car in which the vehicle owner need not to worry about extra expenses while repairing the vehicle in case of any accident or damage by act of god perils.
There are ever increasing number of road accidents in our country. The own damage section of a comprehensive motor insurance protects our vehicle from any such unwanted accidental repair costs and expenses. Without a valid insurance cover in place these expenses can be so huge sometimes to shake the monthly budget of our family.
Even if a normal motor policy is in place, there are always some expenses which needs to be borned from our own pocket. There are also some exclusions in the motor insurance policy, which will not be covered or paid through it.
If we have ever tried to read the policy wordings of a motor insurance policy, we must know that a normal motor insurance policy does not covers wear and tear for partial loss i.e. repair claims for any category of vehicles and a depreciation is always charged as stated in the policy. The depreciation can vary from 5% to 50% as per the age of the vehicle and the part under consideration.
In case of an accidental repair claim, this is obviously an expense especially for the people with newer cars as for some parts like rubber, nylon, plastic parts, tyres and tubes, batteries and airbags the rate of depreciation charged is a bit higher.
This may lead to a situation where the consumer wishes that there should be some kind of insurance available where there is no depreciation charged.
Understanding this need of the policyholder, insurers along with a wide range of other additional covers, offer nil depreciation or zero-dep coverage. This in more common language is called a bumper to bumper insurance.
The customer needs to pay a nominal additional amount as premium to get the benefits of these additional covers printed on their motor insurance policy.
After purchase of this add on, in other words the vehicle is covered from bumper to bumper, including every parts and accessories and the insured need not to pay for depreciation for any part replaced by the insurer in case of an accident.
This may be useful for a new or a slightly older car, new or inexperienced drivers and the drivers who use to drive regularly in accident prone areas need to seriously consider this add-on with their base comprehensive insurance policy.
Bumper to bumper insurance cover all kinds of accidental damages to the body parts of the car like rubber, fiberglass, plastic, nylon, and metal are included in this.
In the above paragraph we have written that after opting a nil depreciation policy the client need not to spend a penny from his pocket. This is wrong! Even after opting for add on by paying additional premium, excess under the policy needs to be borned by the insured.
Also there are some expenses which will not come under the purview of this add on and the customer should be clear on this to avoid any unnecessary surprises at the time of a claim.
Some parts which will not be covered under bumper to bumper insurance are battery, tyres and tubes, gad and bi-fuel kits etc.
Zero depreciation add on is more related to saving pocket expenses on depreciation on the parts replaced and mechanical breakdown of the car is also out of the scope of this add on.
Engine damage due to leakage of fuel and water ingression is also out of the scope of this add on. Similarly transmission, car dents and scratches will not come in scope of this add on.
But nothing to worry about there are many other add ons available in the market to fill the gaps. The customer should take time to read the policy wording or promotional materials to understand the coverages provided by the add ons, identify the risks associated with the vehicle plying on road properly and then conclude the purchase decision.