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Enhance Your Insurance Coverage With These Riders

Published: May 30, 2018 06:43:25 AM IST
Updated: May 30, 2018 10:41:07 AM IST

Insurance is something which all of us do need, at some point in our lives. Be it to cover your loved ones from the risk of financial instability, shield against the shock of unpredictable medical expenses, and protect your house or your vehicle against the risk of loss or damage. Insurance is a necessity that can prove to be a nothing short of a blessing in disguise for anyone and everyone. However, speaking of insurance, it seldom happens that one single policy can provide all the protection that you need or want, even if it is a comprehensive policy.
It is to fill this gap in coverage that insurers offer add-on riders or covers with various types of insurance plans. The primary purpose of taking a rider is to enhance the protection provided by an insurance policy, and provide cover against a specific risk. With bankbazaar India ,riders can be availed with various kinds of insurance plans like life insurance, health insurance, and motor insurance, for a premium that is over and above the base policy premium. In case the specific event, for which the rider has been taken, occurs, the life cover/death benefit. If you are looking to amp up the coverage of your insurance plan, here are some of the most important riders you must consider buying. 

Life/Term Insurance Riders
Accidental Death Rider– Almost all life insurance plans will provide cover in case of death following an accident. The job of the Accidental Death Rider is to provide the nominee with an additional benefit amount, over the base plan sum assured, if the insured passes away following an accident.  
Permanent or Partial Disability Rider – If the insured has met with an accident and lost a limb causing permanent disability, their ability to earn an income is impaired. Under this rider, the insured is paid the full rider sum assured in case of a permanent disability, and a partial sum assured in case or a partial disability.
Waiver of premium Rider– In some cases, policyholders may not be able to afford policy premiums due to a loss of income which has resulted following a disability or a critical illness. In such cases, the waiver of premium benefit not only waives the future policy premiums but also ensures that the policy provides uninterrupted coverage and benefits for the entire term.
Critical Illness Benefit Rider – This rider is not only available with life insurance plans, but also health insurance plans, where it serves the same purpose i.e. to help shoulder the burden of high medical costs in case of a critical illness diagnosis.
Income Replacement Benefit Rider – Especially in the case of a term insurance plan, dependents or nominees are often clueless about investing the death benefit amount received after the insured’s demise. This rider has been introduced to take away that very worry and provides the nominee with an additional income, over and above the base plan sum assured, on a regular basis for a specified number of years.
Motor Insurance Riders
Zero Depreciation Cover – When settling a motor insurance claim, insurers will typically calculate and deduct the amount of depreciation that the vehicle has undergone, before deciding the claim payout amount. The Zero Depreciation cover basically enables the policyholder to make a claim on the original cost of the replaced car parts which would otherwise have to be claimed minus the cost of depreciation.
Return To Invoice Cover – In case a vehicle is stolen, or is declared a total loss following an accident, the claim amount is usually paid is equal to the vehicle’s IDV (insured declared value).  However, if the insured has taken a Return To Invoice Cover over their regular motor insurance plan, they will be entitled to a claim amount equal to the original invoice value of the insured vehicle. This cover is usually taken for vehicles that are up to 3 years old.
Engine Protect Cover –
Especially ideal for higher-end vehicles that are up to 3 years old, the Engine Protect cover entitles the policy owner to a reimbursement of cost towards engine repair required due to non-accident risks like flooding, etc.
No Claim Bonus Protect Cover – Insurers provide policyholder with a No Claim Bonus for every claim free year, which in turn helps bring down the premium costs. The No Claim Bonus Protect Cover comes in useful as it allows the policyowner to preserve their no-claim bonus, even if they have made a claim during the policy year.
Rental Reimbursement Cover – Conveyance can be a challenge if your vehicle has been damaged and is undergoing repairs. In such a scenario, one would usually have to rely on public transport, carpool with colleagues, or rent a vehicle to be mobile. The Rental Reimbursement Cover will reimburse you for the cost you have incurred in renting a replacement vehicle for the time being.
Riders allow policyholders the liberty to customise an insurance policy based on their needs. If you have purchased an insurance policy which doesn’t quite provide comprehensive coverage, getting a rider is an ideal solution. Not only is it cost-effective, but will also provide you with the protection you need.