The car insurance segment is a very competitive market in India. We have a host of companies all trying to out-price each other and gathering more market share.
These are some of the add-on features which can be purchased along with your regular car insurance policy. They come at a small cost but add great value.
Return to Invoice
The value of any car drops significantly the moment it touches the road outside the showroom from where you purchased it! Now let us assume your car is stolen 12 months after you purchased it. When you go and try to claim re-imbursement, you would not get anywhere close to the amount required to buy a new car! The insurance company would apply a depreciation rate and then calculate the amount payable to you. Also there are considerable costs in registration and road tax charges when you buy a new car.
Through the return to invoice feature, the car insurance company will pay you the amount required to purchase a brand new car of the same type. The registration and road tax payable will also be paid to you. So go get back to buying a brand new car without spending a rupee.
Lets take an example: You buy a car for Rs. 5,00,000. The registration and road tax etc came to another Rs. 25,000 odd. So a total cost of Rs. 5,25,000 is incurred in purchase of the car. Now if the car is stolen, the insurance company would typically pay you around Rs. 4,25,000 for the loss incurred to you. So within a year you would have to shell out Rs. 1,00,000 extra in case you want to buy a new car. With the return to invoice cover, you insurance company would pay you the extra Rs. 1,00,000 so that you have a brand new car at no cost!!!
Tata Aig General Insurance Company offers this feature.
Great feature – right???