Weekends and time off from the daily grind are excellent opportunities to break the monotonous routine and indulge in something that gives you joy. One such thing could be going on a trip out of town. But things might not always happen as planned. There might be some unforeseen events that you need to handle while on a trip in a lesser-known area, for example, a car accident. Apart from access to a medical facility or a garage, you will also need financial help in such a situation. This can be provided by car insurance and specifically the Outstation Emergency Accident Cover that you can buy as a Car Insurance Add-on with a Comprehensive policy.

Outstation Emergency (Accident or Breakdown) Cover in Car Insurance (Add-on) - Acko

By reading this article, you will understand the Outstation Emergency Accident Cover in detail and how you can make use of this cover when you face an emergency while driving your car in an unknown region.

What is Outstation Emergency Cover in Car Insurance?

As the name suggests, the Outstation Emergency Cover will provide financial protection when you face an emergency situation like accidents or car breakdown. You can call your insurance company and notify them about the incident. They will provide help as per the terms and conditions of your car insurance policy.

This way, you either don’t have to spend money for carrying out the repair of your car or get the money you spent via filing a reimbursement claim with the insurance company. In short, your insurer will bear the fee of an emergency that you faced when you went on a car trip.

Example Scenario:

  • Consider Mr John went on a short 3-day trip out of town.
  • He drove the car and had a few friends for company.
  • They met with an accident where Mr John and the passengers suffered minor injuries but the car was majorly damaged.
  • The car was sent for repairs after informing the insurance company and it took more than a day for the repair work to complete.
  • Later, Mr John filed a claim against the Outstation Emergency Cover he had bought along with his car insurance policy and got a reimbursement for the money he had spent on repairing the car.

Note: In the above example Mr John made use of the add-on coverage he had bought with his car insurance policy.

How to Buy Outstation Emergency Cover Add-on:

This section will explain how to buy Outstation Emergency Cover for your car insurance policy. Bear in mind that any additional coverage can be bought only with the Comprehensive type of car insurance policies.

The Outstation Emergency add-on will not be available with the government-mandated Third-party Liability Policy. This is because add-on covers provide additional coverage for the damage to your car, since the basic policy does not insure the policyholder’s car, it is not available as an additional coverage.

You can buy the Outstation Emergency Cover for your car in two ways. We have explained them below:

1. Car Insurance Online:

One of the most important stages of buying a car insurance policy is to understand your needs. Then look for a suitable coverage that can fulfil all your needs related to car insurance. You can buy the policy online in the following two ways:

  • Directly from an insurance company:

You should consider your daily routine and overall habits to be clear about the type of add-ons you wish to buy. Then look for a good insurance company and check if they provide online services. Also try to find out if this company offers the Outstation Emergency Cover for Car Insurance. 

If yes, visit their website and click on car insurance. If you are buying a car insurance policy from this insurance company for the first time, you will have to give every detail about you, your car, and your history of claims. Next, you can select the type of policy you wish to purchase and any additional coverage that you need

  • From an online insurance broker:

Many insurance brokerage firms offer car insurance from multiple insurance companies on their website. Look for the required coverage and complete the purchase journey as you would on an insurer’s website.

Finally, read all the terms and conditions of the policy and then proceed to make an online payment. If no further action is required from the insurer’s end, you might get your car insurance policy instantly at your registered email address.

2. Car Insurance Offline:

It is highly recommended that you purchase a car insurance policy online as you may get discounts, convenient purchases, and instance policy if you opt for this method. However, in case you are not comfortable with an online purchase you can get your car insurance policy in the traditional manner i.e. offline. You can buy a car insurance policy via the traditional method in two ways:

  • Directly from the insurance company:

After you are clear about the type of coverage you wish to purchase, proceed to get in touch with an insurance company via calls, or by visiting the insurance company in person. You will be given a few forms that you need to fill duly and submit to the insurer along with other documents like registration certificate of your car, previous policy (for renewals), driving license, etc. You will be asked to make payment and your car insurance policy will be sent to you via post.

  • From an insurance agent:

An insurance agent will look after most of the process when you need to buy a car insurance policy. Convey your needs to the agent, and he/she will return with a suitable policy. Fill out any forms and handover the required documents to the agent. The submission process will be carried out by the agent. You will receive your car insurance policy in the next few days.

Benefits:

Buying a car insurance policy that is in sync with your needs will give you solid financial protection and peace of mind at the time of an unfortunate incident related to your car. The coverage provided by a car insurance policy can be fortified with Add-ons. The Outstation Emergency Cover will give you the following benefits if you purchase it with your comprehensive car insurance policy:

1. Financial Protection

The Outstation Emergency Cover is designed to offer financial protection in case of car-related mishaps when you are away from your home. You simply need to get in touch with your car insurance company and tell them about the incident. After taking down the details of the incident, your insurer will provide financial help at the time of claim settlement.

2. Easy Repairs 

Some insurance companies provide a wide range of services that include a large network of garages across the country. A network garage is a car repair workshop that has a tie-up with your insurance company. If you take your car to a network garage, you can file a claim for cashless repairs even when you are away from home i.e. outstation.

3. Peace of Mind

Facing an emergency when you are away from home can be worse than facing the same emergency in an area where you know how to go about if things go wrong. It can be very stressful if you do not know anyone who can provide help when you are driving outside. The Outstation Emergency Cover Add-on will thus provide peace of mind and you can complete the journey with minimum hassles.

How To Claim Car Insurance For Outstation Emergency Cover:

The process for how to claim Outstation Emergency cover is explained in this section. The policyholder who has purchased the Outstation Emergency cover can make a claim for car insurance if the insured car cannot be driven due to an accident or a breakdown when outside a 100-kilometre radius from the policyholder’s place of residence. 

Here are the steps for making a claim against Outstation Emergency Cover of your motor insurance policy:

Step 1: Claim Intimation

You need to notify your car insurance company about the incident or emergency you faced as soon as possible. Different car insurance companies may have different claim processes. Speaking to a customer relationship manager will be helpful to know the exact claim process. Follow his/her instructions and you can easily file the claim.

Step 2: Documents

The customer relationship manager will also inform you about the list of documents that will be required for claim settlement. In most cases the following list of documents will be required for the purpose of claim settlement: 

  1. A duly filled claim form
  2. A written application for claim
  3. Copy of the First Information Report (FIR) if applicable
  4. Copy of the Car Insurance Policy
  5. Copy of your Driving License
  6. Any other documents as conveyed by the insurance company

After the claim is raised successfully, it will be scrutinised by the insurance company’s claims team. A claim will likely be settled after this process is done.

Private Car Package Policy – Add-ons: Outstation Emergency Cover:

This type of Outstation Emergency Cover is available for a private car package policy. Following are the conditions under which this add-on will come in to force:

  • Special Conditions:
    • The Outstation Emergency Cover will become claimable if the time required to get the car repaired exceeds 12 hours.
    • The Outstation Emergency Add-on can be claimed when a policyholder faces an emergency while driving outside a radius of 100 kilometres from his home.
    • Number of claims allowed under this Add-on are restricted. This number is mentioned in the policy document.
    • The claims made under Outstation Emergency Cover will not affect the No Claim Bonus Cycle of the policyholder.
  • Document Required:
    • A duly filled claim form
    • A written application for claim
    • Copy of the First Information Report (FIR) if applicable
    • Copy of the Car Insurance Policy
    • Copy of your Driving License
    • Any other documents as conveyed by the insurance company

Private Car Package Policy – Add-ons: Outstation Emergency Cover – 3 Years:

This type of Outstation Emergency Cover is available for a private car package policy. Following are the conditions under which this add-on will come into force:

  • Special Conditions:
    • This add-on will be valid for 3 years from the date of commencement of the car insurance policy.
    • The Outstation Emergency Add-on can be claimed against when a policyholder faces an emergency while driving outside a radius of 100 kilometres from his home.
    • The Outstation Emergency Cover will become claimable if the time required to get the car repaired exceeds 12 hours.
    • The claims made under Outstation Emergency Cover will not affect the No Claim Bonus Cycle of the policyholder.
    • Number of claims allowed under this Add-on are restricted. This number is mentioned in the policy document
  • Document Required:
    • A duly filled claim form
    • A written application for claim
    • Copy of the First Information Report (FIR) if applicable
    • Copy of the Car Insurance Policy
    • Copy of your Driving License
    • Any other documents as conveyed by the insurance company

Private Car Policy – Add-ons: Outstation Emergency Cover – Bundled:

This type of Outstation Emergency Cover is available for a private car package policy. Following are the conditions under which this add-on will come into force:

  • Special Conditions:
    • Number of claims allowed under this Add-on are restricted. This number is mentioned in the policy document
    • The claims made under Outstation Emergency Cover will not affect the No Claim Bonus Cycle of the policyholder.
    • The Outstation Emergency Cover will become claimable if the time required to get the car repaired exceeds 12 hours.
    • The Outstation Emergency Add-on can be claimed against when a policyholder faces an emergency while driving outside a radius of 100 kilometres from his home.
  • Document Required:
    • A duly filled claim form
    • A written application for claim
    • Copy of the First Information Report (FIR) if applicable
    • Copy of the Car Insurance Policy
    • Copy of your Driving License
    • Any other documents as conveyed by the insurance company

Also, read: Return To Invoice Cover (RTI) in Car Insurance

Things To Keep In Mind While Filing A Claim:

Every insurance company has an active parameter called a claim settlement ratio. This is the ratio of number of claims received upon the number of claims settled. It is so important for some people that they select an insurance company based on this parameter. It is not advisable to do so. It is almost next to impossible that an insurance company has a ratio of 100% claim settlement. 

Many times claims can get rejected simply because the policyholder did not follow the said procedure for filing a claim. Some may forget the submission of important documents, while others may not inform the insurance company about a claimable incident and get the car repaired even before a survey. Here are a few tips that will help you file a claim correctly and increase the chances of claim settlement:

1. Notify The Insurer Immediately

An insurance company expects you to notify them about an unfortunate incident related to the car as soon as possible. In case the policyholder is injured in an accident, he/she can file the claim later. However, for other types of claims, the policyholder needs to intimate the insurance company immediately.

2. Do Not Hide Any Information

You need to divulge all the details of the incident and be truthful about the facts. This is because your claim will be investigated by the insurance company. They have a special team for this purpose. The team will scrutinize every minute details and find facts related to the claim. In case the details provided by you and the reality do not match, your claim will be rejected straightaway.

3. Submit Correct Documents

When you intimate the claim, your insurer will send you a list of documents that would be required for the purpose of claim settlement. Arrange for each and every document on the list and then proceed to file the claim. If any of these documents are not present in the claim file, your claim will get rejected. For example, the First Information Report (FIR) is necessary for an accident claim. If you miss submitting such an important document, your claim will get rejected.

Frequently Asked Questions:

The Outstation Emergency Accident Cover seems very useful, but my policy is a long way from expiry. Is there a way to still buy the cover?

Yes, it is possible to buy the Outstation Emergency Accident Cover in the middle of your policy period. You can initiate a process called as Policy Endorsement. It means making changes in the existing car insurance policy. You can get in touch with your insurance company and buy the add-on on a pro-rata basis.

Is it mandatory to buy the Outstation Emergency Accident Cover?

No, it is not mandatory to buy the Outstation Emergency Accident Cover. In fact, buying a Comprehensive car insurance policy is also not mandated by law. The compliance requirement is limited to buying Third-party Liability car insurance. However, if you buy the policy you can make use of the benefits mentioned in the article. Vehicle insurance rates are different for both types of car insurance policies.

I have read that raising a claim resets the No Claim Bonus cycle. Is this true for Outstation Emergency Accident Cover?

No, it is not true for Outstation Emergency Accident Cover because it will not reset the No Claim Bonus cycle. However, any other type of damage claim can drop the discount down to zero for any type of car even for a new car.

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