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How Non-Life Insurers Can Offer Add-On Services to Enhance Your Coverage
01 Sept 2025
2 mins read
Wait, what is this about?
There is a strong buzz on the street that Indian non-life insurers may soon be allowed to offer add-on services alongside their core offerings. For customers, this translates to greater convenience; for insurers, it opens up a new revenue stream and the ability to provide comprehensive, one-stop solutions.
These non-life insurance policy extras could include value-added offerings like car servicing contracts bundled with car insurance, or diagnostic health packages alongside health insurance. These insurance add-ons for better coverage not only enhance customer experience but also boost retention by offering more relevant and personalized services.
While these add-on covers in non-life insurance may seem like small additions, they hold the potential to significantly shift how general insurers engage with customers. The real benefits of insurance add-ons lie in creating a more holistic and tailored insurance ecosystem—delivering both protection and proactive care.
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Table of Contents
Types of Non Life Insurance Policies Available in India
Health Insurance: Covers medical expenses for illnesses, injuries, and hospitalizations. It often includes cashless treatment, pre/post-hospitalization benefits, and critical illness coverage.
Motor Insurance (Car/Bike): Provides financial protection against damage or theft of vehicles and third-party liabilities. Comprehensive motor policies can be enhanced with add-on covers in non-life insurance like zero depreciation or engine protection.
Home Insurance: Covers losses or damages to residential property due to fire, theft, natural calamities, etc. These policies are essential non-life insurance policies that safeguard one's most valuable asset.
Travel Insurance: Protects against travel-related risks like trip cancellations, medical emergencies, and lost luggage. These policies often include non-life insurers add-on services such as emergency cash assistance.
Commercial Insurance: Includes policies like fire insurance, marine insurance, liability insurance, etc., tailored for businesses. Add-ons enhance coverage for business interruption, machinery breakdowns, and more.
Popular Add-On Services by Insurance Type
Zero Depreciation Cover (Motor Insurance): This add-on cover in non-life insurance ensures the full claim amount without factoring depreciation of vehicle parts, offering better coverage.
Room Rent Waiver (Health Insurance): A popular insurance add-on that allows policyholders to choose hospital rooms without rent capping, improving treatment comfort and flexibility.
Home Structure & Content Add-On (Home Insurance): Adds extra protection for high-value contents (electronics, jewelry, etc.) beyond basic structure coverage—valuable non-life insurance policy extras.
Trip Cancellation or Delay Cover (Travel Insurance): Protects against unforeseen travel disruptions by reimbursing expenses. Such insurance add-ons for better coverage provide peace of mind for frequent travelers.
Loss of Profit Cover (Commercial Insurance): This benefit of insurance add-ons helps businesses recover lost income due to insured perils affecting operations, especially critical for SMEs.
How will this change be manifested?
In order to permit insurers to sell products and services not directly related to their insurance operations, the Insurance Act has to be amended. This is likely to be introduced during the Parliament’s monsoon session. This gives the insurance company a better chance to own the customer rather than allowing another service provider to own the customer. It also enhances the possibility of cross-selling at a future date.
Will this reformation work out?
There are enough global templates for this model. The United Kingdom permits both value-added services and cross-selling services by insurers. A car insurance agency in the UK can provide core insurance as well as supplementary services such as car repair and service products. Singapore and Malaysia allow life insurers to provide financial advisory to clients as well as services incidental to life insurance businesses. Australia even allows insurers in general to conduct businesses whose wavelengths resonate with the type of insurance being offered.
How this amendment adds value to insurers and customers
In any marketing activity, the existing customer is always the low-hanging fruit, so deepening the relationship counts a lot. That is where the easy growth is. Getting new customers is expensive and the average cost is nearly 7 to 9 times higher than money spent on selling products to existing customers. In short, providing the right offer at the right time can help guide existing customers to choose better options through a hyper-personalized experience. For the insurer, they can identify new segments within the customer base and efficiently deliver more relevant content.
According to a recent Forbes study, 71% of customers are unhappy with shopping experiences being too impersonal. Meanwhile, insurance companies are those who actually form a personal connection with each of their customer at all stages of their life. Insurance companies will thereby fill in the void of providing customers with a personal touch through marketing automation and tapping into customer databases. The outcome would be customer delight.
More importantly, insurers can build meaningful connections to support growth and serve customers better. The challenge will be to integrate networks to offer these services, but that would be the next step.
