car insurance: New car insurance plan: File single claim for multiple chips, scratches, minor losses anytime; should you buy?

If you drive a car you must know that basic comprehensive car insurance is not enough to protect it from all the damages, especially during the monsoon. When you are stuck on a waterlogged road and your engine breaks down after your multiple desperate attempts to get out, your insurance company will not pay a penny to replace your engine. And it can easily cost you lakhs depending on your car model.

If you wish to have insurance for such damages, you need to buy add-ons or additional cover for further protection of your car. Add-on covers are usually additional benefits that you can add to your comprehensive car insurance policy by paying an extra amount. To protect different parts of your car, there are specific add-on covers. For instance, an Engine Protection add-on cover safeguards your car engine from losses due to water ingress or a Consumables add-on cover provides coverage for consumable elements such as grease, air conditioner’s gas, lubricants clip, engine oil, oil filter, brake oil, nut and bolt, screw, washers, etc., which are not covered in the standard policy.

It is important to choose the right add-on cover and mention the correct one while filing a claim. If you don’t understand what part of your car is protected by which add-on cover and jumbled them up while filing an auto insurance claim, your insurance company may refuse to bear the cost. To solve this, Bajaj Allianz General Insurance has come up with a new motor insurance plan that offers a plethora of add-on covers together.

Bajaj Allianz General ‘V-Pay’: All you need to know
First, let’s understand how it works. Named ‘V-Pay’, it is an umbrella protection cover. Instead of individual add-on covers, it offers a bundle of add-on covers that protects your car from damage. Under ‘V-Pay’, there are two plans — The Classic plan and the Elite plan, as per the policy document.

Under the Classic plan, you will get add-ons for Roadside Assistance; Consequential Losses (it will offer coverage if the vehicle is left unattended on the road including damage to child parts); CNG/LPG Kit (if customers forget to declare additional accessories or CNG fitments, their vehicles are still protected during claims with coverage of up to 1 per cent of the Insured Declared Value (IDV); Waiver of Deductible (Waiver of all types of compulsory deductible); Loss Arising Out of Adulterated Fuel (protection for loss or damage due to adulterated fuel and or damage due to flexi fuels) among many others. It also offers add-ons like Rally, Depreciation Waiver, Tyre & Rim Protection, Personal Baggage, and Key Replacement, Vehicle Retrieval & Towing, Vehicle Replacement, 24×7 Roadside Assistance, Rodent Bite, and Geographical Extension feature.

On the other hand, the Elite plan has as many as 22 features. The Smart Repair feature allows you to report multiple minor paint chips and/or scratches anytime during the policy period. It also offers cover for mechanical and electrical breakdowns that are not a result of accidents, which are typically excluded from standard motor insurance policies. The Recalibration feature under the V-Pay Elite Plan ensures protection for the vehicle’s digital sense devices as well. Defense Cost covers the fees of the Advocate defending or providing legal assistance to the customer for police and court proceedings. Do note that all the other add-ons of the Classic plan are included in the Elite plan.

V-Pay offers coverage for electric and hybrid vehicles as well, safeguarding them from damages arising due to power surges, explosions, water ingress, and short circuits.

Bajaj Allianz General ‘V-Pay’: When you can buy it? How much do you need to pay?
Private car owners can opt for V-Pay add-on cover on their base Own Damage (OD) cover. The policy period of Bajaj Allianz General ‘V-Pay’ will be up to the policy period of the base policy. You can opt for this offering at the time of purchasing a fresh motor insurance OD policy or during the renewal of your existing motor insurance policy, said the insurer.

For a car with an IDV of Rs 6 lakh, the total Own Damage (OD) cover premium with the VPay Classic plan will cost Rs 22,530, the insurer said. With V-Pay Elite Plan, the total Own Damage premium will come to Rs 27,030 in a year. For separate add-on covers such as Depreciation Shield, Engine Protector, Consumables Cover, and Roadside Assistance, the total OD premium will be Rs 19,530 in a year.

Bajaj Allianz General ‘V-Pay’ offers a unique value proposition

Explaining the reason behind launching ‘V-Pay’, Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, said, “Motor Insurance offers multiple add-on covers, but choosing the right ones can be daunting. Likewise, during claims, it is overwhelming for customers to understand what falls under the purview of their policy and what they have to bear from their pocket. Addressing these concerns, our game-changing add-on, V-Pay, streamlines the entire process, from purchasing the cover to a hassle-free claim settlement. With its 360-degree coverage, the V-Pay add-on will simplify the lives of our customers like never before.”

Bajaj Allianz General ‘V-Pay’: Should you buy it?
As you notice, Bajaj Allianz V-Pay offers some unique features, however, these additional features come with a cost. “This add-on policy can be considered on top of the base policy if one wants to have peace of mind about their vehicle by paying an extra premium. Many insurers raise questions if there is a delay in claiming repairs after multiple minor incidents. Under this policy, one can file a single claim for multiple minor losses during the year with no compulsory deduction. For these extra features one needs to shell out more premium so it might not be worthwhile for someone on a tight budget,” said Abhishek Kumar, a SEBI-registered RIA and Founder of SahajMoney.

“It is a good add-on and especially if there are minor dents or accidents, normally insured do not claim because of deduction, depreciation, and multiple claims. In this policy, all minor accidents, as well as major accidents, can be reported in one claim and there won’t be deduction also,” said Nikhil Kothari, a CFA and Director, Etica Wealth Pvt Ltd. However, one needs to do a cost-benefit analysis before buying the cover, he added.

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