Chandigarh, Dec 10 (Inditop.com) Private insurer Bharti Axa General Insurance Thursday launched enhanced protection covers for cars to boost its premium earnings from the motor vehicle portfolio.
“Currently our overall motor insurance accounts for 40 percent of our Rs.170-crore premium earnings. We hope to earn 20 percent more with the add-on covers,” Bharti Axa chief executive Amarnath Ananthanarayanan told IANS after launching the four covers here.
Enhanced protection covers or add-on covers are insurance coverage over and above the existing base insurance which comes at an extra premium.
The four add-on covers launched by the company are hospital cash, reimbursement of medical expenses, ambulance charges and depreciation cover.
Under the hospital cash cover, if an insured car meets with an accident and the occupants get admitted in a hospital, they will get a fixed daily allowance for up to 30 days, Ananthanarayanan said.
“The premium is Rs.100 for a sum assured of Rs.1,000,” he added.
Under the reimbursement scheme, the insurer will reimburse medical expenses incurred after an accident. The premium for this scheme is Rs.75 for an assured sum of Rs.10,000.
If a person opts for depreciation cover, then the insurer will not deduct any sum towards depreciation from the cost of new parts replaced after an accident.
“The premium ranges from 0.24 percent to 0.6 percent of the sum insured with high value cars charged lower percentage. The cover is available for two claims every year,” Ananthanarayanan added.
The ambulance cover will pay up to Rs.5,000 towards ambulance expenses for a premium of Rs.100.
The chief executive also said Bharti Axa would extend the add-on covers to its two-wheeler and commercial vehicle policies based on the response to the current product.
