Daily Allowance Add-on Cover in Car Insurance

Imagine this: your car ends up in the repair shop after an unfortunate mishap, leaving you stranded and relying on taxis or carpools. It's inconvenient and can burn a hole in your wallet.

This is where the daily allowance cover in car insurance swoops in like a financial superhero. Think of it as the friend who always lends you cab fare when you're in a jam—only more reliable a Read More...

Daily Allowance Add-on Cover in Car Insurance

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What is Daily Allowance in Car Insurance?

Daily allowance in car insurance, also known as downtime allowance, compensates the insured for transportation expenses while their car is being repaired. This coverage is particularly beneficial if your car is essential for daily commutes or business needs.

For example, if your car is at the garage for a week, you can receive a fixed daily payout to offset the cost of public transport or taxi services.

Why is Daily Conveyance Benefit a Critical Add-on Cover?

The daily conveyance benefit ensures that you don’t bear the financial burden of alternate transport when your car is being repaired. It is especially useful for:

Financial Relief:
Covers transportation costs during the repair period, typically providing a daily allowance (e.g., ₹500) for up to two weeks.
Flexibility:
Offers freedom to choose preferred travel modes, particularly beneficial in areas with limited public transport.
Peace of Mind:
Reduces stress by covering unexpected transportation expenses, allowing focus on other priorities.

This add-on ensures financial stability and convenience during unexpected situations, making it an essential consideration for car owners.

Benefits of SBI General Daily Allowance Car Insurance Add-on

SBI General Insurance provides a comprehensive daily allowance insurance add-on, offering numerous advantages:

Daily Allowance:
Provides a fixed amount (e.g., ₹500/day) for alternative transportation during repairs.
Extended Coverage:
Covers transportation costs for up to 10–15 days, ensuring continuity in daily routines.
Convenience:
Offers flexibility to select preferred travel modes, vital for areas with limited public transport.
Cost-Effectiveness:
A low premium prevents high transportation expenses in emergencies.
Peace of Mind:
Reduces stress by covering mobility needs during vehicle downtime.
Comprehensive Coverage:
This applies to immobilisation caused by accidents, natural disasters, or man-made events.

This add-on ensures financial and logistical ease during unexpected vehicle repairs.

What’s Covered in Daily Allowance Car Insurance Cover?

The Daily Allowance policy typically covers:

Alternate transportation costs:
Compensation for using taxis, cabs, or public transport.
Garage downtime:
Daily payouts when your car is in a network garage for accident-related repairs.

What’s Not Covered in Daily Allowance Car Insurance Cover?

While the daily allowance car insurance cover offers benefits, there are exclusions:

Routine maintenance or service-related downtime.

Repairs at non-network garages (for some insurers).

Situations where the downtime does not exceed the specified minimum days.

How Does Daily Allowance Cover in Car Insurance Work?

Here's how it works:

Purchase the add-on:
Add the daily allowance cover to your car insurance policy online or offline during renewal or when buying a policy.
Filing a Claim:
When the insured vehicle is damaged, the policyholder must file a claim with the insurer at an authorised garage. The repair work must take longer than a specified period (usually more than three days) for the daily allowance to kick in.
Notification:
After confirming that repairs will exceed the waiting period, the policyholder should notify their insurer about the need for daily allowance benefits.
Documentation:
The insurer may require documentation to process the claim, including repair estimates and proof of the repair duration.
Receive compensation:
Get a fixed daily amount until your car is repaired, up to the policy’s maximum coverage period.

Who Should Opt for Daily Allowance Cover in Car Insurance?

This add-on is ideal for:

Daily Commuters:
Supports alternative transport costs for work or essential activities.
Single Car Owners:
Crucial for families or professionals relying on a single vehicle.
Residents in Areas with Limited Public Transport:
Ensures mobility in regions lacking reliable transport options.
Business Professionals:
Beneficial for self-employed or frequent travellers like sales reps and delivery drivers.

Essential Points to Keep in Mind Regarding Daily Allowance Car Insurance Add-on

Ensure the repair duration exceeds the minimum downtime specified in the policy.
Review exclusions, such as repairs at non-network garages.
Understand the coverage period limits (e.g., 7, 10, or 15 days of compensation).

How to Buy or Renew Daily Allowance Car Insurance Cover?

Getting or renewing a daily allowance cover in car insurance is easy. Insurers like SBI General Insurance provide a smooth digital experience:

Visit the Insurer’s Website:
Navigate to the car insurance section and select additional covers.
Add the Daily Allowance Option:
Choose this add-on with your comprehensive insurance to receive daily compensation for transportation expenses while your car is under repair.
Finalize Payment and Documents:
Submit the required documents and pay the premium securely online.

SBI General’s online services make it convenient to protect yourself against transportation costs during car repairs, ensuring financial relief when you need it most.

When life throws a curveball in the form of car repairs, the daily allowance cover ensures you stay on track without added financial stress. It’s a small investment that guarantees peace of mind during a downtime crisis. If uninterrupted mobility is crucial for you, consider opting for this add-on—especially with a trusted insurer like SBI General Insurance, offering comprehensive coverage and seamless claims.

Frequently Asked Questions

No, the daily allowance benefit cannot be combined with third-party car insurance policies. This add-on is available with comprehensive car insurance plans, which provide coverage for damages to your vehicle in addition to third-party liabilities. Third-party insurance policies are limited to covering only the legal and financial liabilities towards third parties in case of accidents. If you wish to access the benefits of daily allowance cover, you need to upgrade to a comprehensive car insurance policy that allows additional protection with such useful add-ons.

Insurers typically place a limit on the number of add-ons you can include in your car insurance policy. While this limit varies across providers, most insurers allow you to add several options to enhance your coverage, such as daily allowance, roadside assistance, and zero-depreciation covers. It’s essential to check your insurer’s terms and prioritise add-ons based on your specific needs and budget. Overloading your policy with unnecessary add-ons may increase your premium unnecessarily, so choose wisely to ensure cost-effectiveness.

The number of claims permissible under the daily allowance benefit depends on the insurer’s policy terms. Some insurers allow multiple claims within a policy period, while others may limit it to a specified number, such as one or two claims annually. Additionally, there could be restrictions on the duration of each claim, such as a maximum of 7, 10, or 15 days per claim. Reviewing your policy details and understanding these limits before purchasing the add-on ensures you are fully aware of its coverage scope.

Yes, you can file a downtime allowance claim in case of damages caused by riots, floods, or other natural calamities, provided your base policy includes coverage for such events. Comprehensive car insurance policies typically cover damages resulting from such perils, and the daily allowance add-on complements this by providing financial support for alternate transportation while your car undergoes repairs. Always cross-check with your insurer and keep the required documentation ready for a smooth claims process.

The daily allowance amount varies depending on the insurer and the plan you choose. Generally, the allowance is around ₹500 per day. This fixed payout is predetermined and mentioned in your policy document. The amount is designed to offset the costs of alternate transportation, such as taxis or public transport, during the period your vehicle is under repair. It is important to select an amount that aligns with your potential expenses for convenience and to avoid paying out of pocket.

Most insurers offer a maximum coverage period of 7 to 15 days per claim under the daily allowance add-on. This duration begins from the day your car is sent to the garage for repairs and ends when the repairs are completed or the allowed days are exhausted, whichever comes first. The specific period depends on the policy terms set by your insurer.

You cannot buy a daily allowance add-on with a third-party car insurance policy. This add-on is exclusively available with comprehensive car insurance plans that cover both third-party liabilities and damages to your vehicle. To access the daily allowance benefit, upgrade to a comprehensive car insurance plan. This can be done during policy purchase or renewal by selecting the add-on and paying an additional premium.

No, the daily allowance add-on cannot typically be added in the middle of the policy period. It must be purchased either at the time of buying the policy or during its renewal. However, some insurers may offer flexibility under specific circumstances, so it’s advisable to contact your provider to confirm. Planning your coverage needs ensures you include essential add-ons like the daily allowance at the appropriate time without missing out on their benefits.

No, you generally cannot claim the daily allowance benefit for an incident that occurred a week ago. Most insurers require immediate reporting of accidents and prompt filing of claims. Delayed notifications may result in claim rejection, as insurers need timely verification of the incident and repair requirements. To ensure your claims are processed without issues, always notify your insurer immediately after an accident and follow the necessary claim procedures outlined in your policy.

Disclaimer: The above information is indicative in nature, for more details on complete coverage and terms and conditions, please contact our nearest office and also read the policy document and sales brochure carefully before concluding a sale.

*The figures are based on Public Disclosure Reports published for FY2023-24. Claim Settlement Ratio of 99.3% pertains to Motor Own Damage for the Financial Year 2023-2024 and the same is calculated using the formula - Claim Settlement ratio= (Claims Settled + Claims Closed) / (Claims Reported) x 100.

SBI General Insurance and SBI are separate legal entities and SBI is working as Corporate Agent of the company for sourcing of insurance products.

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