Car damaged, stolen? Let insurer pay EMI!

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According to the laws of the country, third party insurance cover is necessary for all vehicles in India. Despite this, more than half of the vehicle owners in the country have not bought any insurance cover. According to the General Insurance Council report, about 60 percent of the vehicles in the country are not insured. More than half of these are two-wheelers.

According to this report, there were a total of 19 crore registered vehicles in the country in the year 2015-16. Out Of this, insurance cover was purchased for only 8.26 crores. Insurance regulator IRDA has expressed concern that this figure is a clear indication of the lack of insurance penetration in the country.

Keeping this problem in mind, IRDA is now constantly trying to increase the scope of insurance in the country. To attract customers, the option of use and file was given to insurance companies. This is helping companies to design new products and attract customers. As a result of IRDA’s efforts, EMI protector insurance is becoming very popular in motor insurance nowadays. Under this insurance policy, you can get huge relief by spending a small amount.

What’s the plan? General insurance companies are also providing many types of add-ons in motor insurance policies just like health insurance. However, not every add-on is useful. But some add-ons prove to be very helpful. One of these types of  riders is EMI protector.

Insurance companies like SBI General Insurance, United India, HDFC Ergo are providing EMI protector add-ons with the basic motor insurance policy. You can get this cover at a premium of only 0.25 percent of the insured declared value i.e. IDV of the vehicle.

What will be covered? If you have an EMI Protector add-on cover and if the car is damaged in an accident, then obviously it can take several months to repair it. If you have bought this car on EMI, then in this case the insurance company will pay two to three EMIs on your behalf. But keep in mind, in the event of complete damage or theft of the vehicle, you will not get the insurance claim  because in such a situation, the insurer will compensate you according to IDV. Similarly, if your car is lost and recovered after two-four months, then in this case too, your insurance company will compensate for two to three of your EMIs.

Insurance expert Vikas Singhal says that people who use their car as taxi, it takes months to repair the vehicle. During this time, it becomes difficult for them to pay the EMI if they do not earn. Emi Protector Add on Cover proves to be very helpful for such people. This insurance cover is also a good option for professionals who do not have regular earnings. Overall, this is a good add-on insurance cover.