Driving a car on the road with all kinds of drivers out there and not getting into even one minor accident is a scenario straight out of the dreams. If you drive in a city with millions of vehicles out there, in all likelihood, you will get into trouble with an accident someday or the other.
However, does it make sense to make an insurance claim for minor damage and lose the possibility of you enjoying the benefits of No Claim Bonus (NCB)? Well, the answer is a straightforward NO.
One way to go about this is to not make the car insurance claim and payout of your own pocket for minor damages. However, we would say that the better way to go ahead would be to buy a small repair claim add-on cover, which enables you to make such small claims without affecting your NCB.
What are Minor Car Insurance Claims?
An accident can be small or big, depending on the intensity of the impact. Let’s say a tree fell on your car during a cyclone and damages your car in a huge way. Now, this is major damage done to your car that will lead to a lot of expense. In fact, it may even cause the total loss of the car. However, there are several incidents like clashing with a bike or a car that causes a minor dent on the car’s body. Now, this is a prime example of minor car damage.
In the first example, you would definitely want to make a claim to get compensated by the insurance company because the expense, in this case, can run into lakhs. However, the second example is something that you would want to avoid so as to enjoy long-term benefits. This is where a small repair claim add-on cover comes to the rescue.
What is a Small Repair Claim Add-on Cover?
Simply put, a small repair claim add-on cover is the add-on that one can buy with a comprehensive insurance policy that enables the user to make claims for small repairs without compromising on NCB benefits. This add-on provides cover against expenses related to repairing work that does not involve the replacement of any parts.
We have listed the repair works that are generally covered under this add-on cover.
- Painting.
- Balancing.
- Wheel Alignment.
- Polishing.
- Minor Denting (for non-cutting and non-welding work only).
- Clutch overhaul.
- Interior cleaning.
- Anti-rust coating.
- Suspension overhaul.
- Engine tuning.
- Tyre rotation.
- Opening-Fitting.
- Paid service labour (as per the OEM’s recommendation).
- Brake overhaul.
- Twenty points electrical check-up.
- Battery replacement.
- Gear-box overhaul.
What are the Benefits of Buying such an Add-on?
- Safeguard your NCB – The major benefit of buying the small repair claim cover add-on is that it enables you to safeguard your NCB. NCB guidelines are quite strict in most cases, and therefore your NCB percentage will be restored back to zero even if you make a very small claim. Hence, you should buy the small repair cover add-on to protect the NCB benefits and still get compensation for the expenses incurred due to the minor damages.
- Minor damages – Now, you no longer have to pay for minor damages out of your own pocket just to save your NCB benefits. When you drive a car in a city, you might end up getting involved in a minor accident that led to a dent on the bumper or misalignment of your tyre or the gearbox not working efficiently. You can get compensation for all these expenses now, thanks to the small repair claim cover add-on.
Things to Keep in Mind While Buying Minor Car Damage Add-on
Just like buying any other add-on, you should keep a few things in mind in this case as well:
- Since it is an add-on cover, you will have to pay a higher premium. Therefore, make sure that you compare different policies online before making the deal.
- This add-on cover is only applicable for users with a comprehensive insurance policy. If you have a third-party liability car insurance policy, you cannot avail of such an add-on.
- You will have to get the repair done at a garage that is part of the car insurance company network of garages.
Why Should You Avoid Making Small Claims?
- Loss of NCB – One of the obvious reasons to avoid making small claims is that you will no longer be eligible to enjoy the benefits of NCB. You can earn up to a 50% discount on the premium if you go 5 years without making a claim, and that is something which you would not want to miss out on because of a minor claim.
- Increased premiums in the future – If you regularly make small claims, the premium for your policy will increase in the future. No insurance company will keep compensating for your expenses without increasing the price of the premium.
- Payment of deductibles – Do not forget that every time you make a claim, you will have to pay a deductible. Let’s say that the damage done to your car is so small that the repair work costs close to your deductible amount. In such a case, it makes no sense to make the claim and destroy the opportunity of completing the term without making any claims.
In a nutshell, we would like to say that you should buy a small repair claim cover add-on in order to safeguard your NCB and still get compensation for your small expenses. Yes, you will have to pay a higher premium but it is a win-win situation in the big picture.
