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Is Your Car Getting Fixed? Downtime Protection Makes Alternate Travel Easy

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In India, most car owners consider car insurance to be just a legal mandate. So, they often stick to the basic third-party insurance. However, it won’t cover you or your own car in case of an accident, theft or natural disaster. And even if you get comprehensive insurance without researching and comparing multiple insurers and policies, you might end up with insufficient coverage. Or not knowing about add-ons can cost you heavily.

For instance, if a major accident occurs, your car might have to go to the service garage for a significant amount of time. In this case, a comprehensive car insurance policy will cover the costs of repairs according to the policy terms. However, while your car is getting fixed, you will still need to go to work. Which means, you will need to pay for an alternate mode of commute that just a comprehensive policy won’t cover. For that, you will need the downtime protection add-on. To know all about it, read on.

What is downtime protection in car insurance?

It is an optional add-on to your comprehensive insurance policy, that pays a pre-determined allowance in case your car needs to go to an authorised service centre as a result of an accident or a natural/manmade calamity.

It’s important to note that this add-on is available only on comprehensive car insurance policies, as it is an extension of the protection offered to your own vehicle. The downtime allowance can be used to find a convenient means of transportation for the duration of the car repair or the time period agreed upon as per the terms of the policy.

How does downtime protection work?

Let’s understand how it works with the help of an example.

Mr Sharma has bought a downtime protection add-on at an additional cost of Rs 600 during his car insurance renewal. He drives about 15 kilometres to-and-fro everyday for work. An alternate transport mode would cost Rs 40 to Rs 400, depending on whether he takes the bus or a cab. Now, for someone who owns a car and drives to work everyday, taking the bus can be quite inconvenient. Assuming he takes a cab to work, and back home every day, Mr Sharma might rack up bills worth Rs 2800, if his car is in the garage for a week, or more.

Also note that the amount he would spend on his daily conveyance would be much higher than the extra premium he’s paid for the downtime protection add-on. So, for a relatively small price, this add-on will help cover Mr Sharma’s alternate transport expenses, providing him with both physical and mental comfort. The amount and duration of the allowance is decided beforehand as per the terms of the policy.

Benefits of downtime allowance add-on

• Firstly, you enjoy convenient commuting even when you don’t have your car.
• Secondly, you don’t have to miss work. You can avail a mode of transport that works for you and it will be paid for according to the terms of the policy.

How to make a downtime allowance claim?

In case your car becomes immobilised due to an accident or natural/manmade calamity, here’s what you should do. Contact your insurer immediately and follow the advised steps. Fill out the claim form and submit the documents, as required, by your insurer – like, car insurance policy, driving license, FIR if needed, etc.

Special conditions or exclusions

The downtime allowance will commence payment either from the date of intimation or when the car is sent to the garage. The duration of the allowance will depend on the time it takes to carry out the repair work, or for a pre-determined period. In case the vehicle is considered as a total loss, or gets stolen, the insurer will pay a lumpsum amount of 10 days’ worth downtime allowance.

Note that downtime allowance is not applicable on damage to the windshield or glass parts of the car. Also, there is a ‘minimum days in the garage’ criteria to qualify for downtime allowance. In other words, your car needs to be in the network garage for a pre-determined minimum number of days to qualify for downtime allowance benefits.

Commercial cars or passenger carrying vehicles can also avail the downtime allowance add-on.

Conclusion

The downtime allowance add-on is essential for those who drive to work regularly and want to avoid the public transport system. By availing this add-on, you will still be able to commute comfortably and at no extra cost in case your car needs to go to the garage. So, when you purchase comprehensive car insurance online, make sure you get a downtime protection add-on as well.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

Related Articles

• Various Add-on Covers for Your Car Insurance Policy
• All You Need to Know about Add-On Plans in Car Insurance
• How to decide which add-on cover do you need for your car?

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