Car damaged, stolen? Pay EMI with insurer!
Car damaged, stolen? Pay EMI with insurer!
In order to comply with the laws of the land, all automobiles in India are required to have insurance coverage for third-party liability. Despite this, more than half of the country’s vehicle owners have not purchased any form of insurance coverage for their vehicles. A survey by the General Insurance Council indicates that almost sixty percent of the vehicles in this country do not have insurance coverage. Two-wheelers make up more than half of these vehicles.
This report indicates that there were a total of 19 crore automobiles that were registered in the country during the 2015–2016 fiscal year. Only 8.26 crores were spent on buying insurance coverage out of this whole amount. The Indian Insurance Regulatory and Development Authority (IRDA) has voiced their concern over the fact that this number is a clear sign of the lack of insurance penetration in the country.
In light of this issue,
the Insurance Regulatory and Development Authority (IRDA) is currently working hard to broaden the coverage offered by insurance companies across the country. The use and file option was made available to insurance firms so that they could attract more clients. This is assisting businesses in the creation of new items as well as attracting new customers. As a direct result of the efforts put forth by IRDA, EMI protection insurance is rapidly gaining traction in the modern world of automobile insurance. With this insurance plan, for a relatively little outlay of cash, you could be eligible for significant financial support.
Where do we stand with this?
Similar to health insurance, general insurance companies are now offering a wide variety of add-ons to their customers who purchase auto insurance plans. Nevertheless, not every add-on serves a purpose. However, there are some add-ons that end up being rather useful. An EMI protector is one of the different kinds of riders available.
Included in the standard auto insurance policy are EMI protection add-ons that are being made available by insurance firms such as SBI General Insurance, United India, and HDFC Ergo. This protection can be purchased for a price that is equal to merely 0.25 percent of the vehicle’s insured stated value, also known as IDV.
What exactly will be discussed?
If you have an EMI Protector add-on cover and your automobile is involved in an accident, then obviously it could take a few months to fix it. However, if you have this cover, then you will not have to worry about this. In the event that you purchased this vehicle using monthly installments (EMI), then the insurance company will be responsible for paying between two and three EMIs on your behalf. Be mindful, however, that in the event that the car is stolen or completely damaged,
you will not be able to make an insurance claim. This is due to the fact that in such a scenario, the insurer would compensate you in accordance with the IDV. In a similar vein, if your automobile is stolen and not found for two to four months, then your insurance provider will compensate you for two to three of your EMIs. In this scenario, the compensation amount will depend on how long it took your car to be found.
According to insurance expert Vikas Singhal, the repair process for a vehicle that has been used by the owner as a taxi can take many months. If during this period they do not earn money, then it will be tough for them to make the EMI payments. The Emi Protector Add on Cover is going to be of great assistance to those kinds of folks. In addition, professionals who do not have consistent incomes may find this insurance cover to be a beneficial alternative. In general, this is a valuable additional insurance protection to have.
