Daily Allowance Benefit cover or say, Downtime Allowance or Daily Garage Benefit comes to your best use when you live in a location where travelling in the public transport mode is difficult, and your car is under repairs. Travelling becomes a little difficult and that too on a daily basis is nothing short of a nightmare. So, in such situations, this add-on cover can come in handy at such times. It offers a daily allowance of upto Rs 500, for up to two weeks, if the vehicle is in the workshop for more than two days. The compensation amount and the number of days may vary across different insurers. But this benefit is available under a comprehensive car insurance plan and only if the car is repaired at an authorized garage.
Here’s an example:
Suppose Ms Shah owns a MUV car. She has bought the Downtime Allowance Benefit add-on cover along with her Comprehensive Car Insurance policy. Ms Shah drives to work every day and taking a cab to work costs her Rs. 400. One day, her car meets with an accident where she suffered minor injuries, but the car was severely damaged. So, she got in touch with her insurer and sent the car for repairs at an authorized network garage.
Now, the problem is, how will she manage to travel to work without her car? She will have to spend over Rs. 400 every day to commute. And as the damage caused to the car was severe, it will take about a week for the car to get repaired. This is where daily allowance add-on comes into effect. With this add-on, Ms Shah doesn't have to spend on the cab from her pocket as the insurance company will bear the cost according to the terms & conditions of the policy.
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The daily allowance is an amount given to only cover the daily travelling expenses.
This add-on benefit ensures that your daily travel needs are met seamlessly. You can enjoy the same comfort levels of travel as you were doing with your own car.
The Daily Allowance Benefit Add-on is additional coverage that you can buy only with a Comprehensive Car Insurance policy. You cannot purchase this add-on with the basic Third-party insurance plan because of the simple reason that the car is not insured in a TP plan. It is possible to buy the Daily Allowance Benefit Add-on in the following two ways:
Go online and check whether your car insurance company offers the Daily Allowance Benefit Add-on. Visit the insurer’s official website, provide a few details related to you, your vehicle, and your policy. Choose the Add-on and make payment after selecting the suitable payment method. You will then receive your update policy in your email in just a few minutes.
For buying offline you must visit the insurance company branch office or meet with an insurance agent. Select the coverage, review your policy carefully, and make payment. You will receive the car insurance policy via post or courier in just a few days.
