Motor insurance (zero-depreciation rider): In case of motor insurance, a zero-depreciation rider can be a good option.
Even when one buys a comprehensive car insurance policy, fixed deductions for depreciation on particular parts like rubber, plastic and so on set in from the seventh month of purchase of the car – older the car, higher the depreciation rate. In case of an accident, the insurance bears the cost when damaged parts need to be replaced.
Motor insurance (return to invoice): A return to invoice ridue of the car. If there is an accident and the car needs to be replaced, the insurance company will be liable to pay the entire cost. Buying the RTI add-on would bridge that gap, since it will ensure the customer gets paid the original amount quoted on his invoice." The other two riders that one can take include inconvenience he recovers. A waiver of add-on becomes important.
A couple of other useful riders include a hospital cash rider, which allows you to claim for expenses like hospital room rent and other miscellaneous cost on hospitalisation. There is a premium waiver rider as well, that helps with children. Here, future premiums on the base policy are waived if the insured becomes permanently disabled or loses his/her income/life as a result of injury or illness prior to a specified age. A 'family income benefit rider' provides death benefits and a monthly income (one per cent of the sum assured per month) to the beneficiary in case of death.
Home insurance (calamity and burglary): A burglary cover (for contents only) will take care of up to 25 per cent of the total content sum insured or `1 lakh for some insurers, whichever is lower. Typically, the premium for home insurance is less than one per cent of the actual cost of the contents or structure covered.
You can choose to buy insurance for only the building (structure) or only the contents (belongings) or both. However, some policies, specially if bought online, are cheaper but offer lesser benefits. In that case, you need to buy a burglary and fire and earthquake cover additionally.
