Car Insurance Policy Additional Covers explained including Zero Depreciation, Engine Protect, Return to Invoice, Consumable Cover, Key Loss and Stolen cover at 100% of On road price
Planning to Buy Insurance for your Vehicle. This Detailed Guide should help you in understanding all covers under Car Insurance.
Basic Terms of Car Insurance for Consumer
Car Insurance Components
In Car Insurance terminology:-
There are 2 Covers in Car Insurance
Own Damage Cover: Covers Risk associated with Vehicle. Essentially Includes
Liability Insurance: Covers Risk associated with Third Party
Here are Major Add on Cover which can be taken beyond the Standard Cover in Car Insurance :-
1. Zero Depreciation: A Car made up of several parts. Rubber, Nylon, Plastic, Airbags attract 50% Depreciation.
Also, some Fibre Component attact 30% Depreciation. While Paint Work on Standalone basis attract 50% depreciation, but if paint work along with Part like say Bumper replaced along with Paint done then 25% Depreciation is deducted.
Zero Depreciation Cover Depreciation Part of these Parts. So In Zero Dep Car Policy - All Plastic, Fibre and Metal Parts are covered at its 100% of the actual price without any depreciation cut for claim settlement.
Excludes: Tyre, Battery are not covered under Zero Depreciation even if replacement needed due to accident.
2. Consumables Cover: This is an add on cover where Consumable items like Nuts, Bolts, Screen Washer, Engine Oil, Bearings need replacement due to road accident. Same is not covered under Zero Depreciation and Comprehensive Policy unless add on Consumable Cover is what taken for the Car
3. Engine and GearBox Protector Cover: A Car Engine is what like heart of Car and cost in several Lakhs. Engine Can get stalled if
and same is not covered under standard Comprehensive and Zero Depreciation Plan unless an added Engine and Gearbox Protector cover taken.
Thus an added Engine and Gear Box Protector offers peace of Mind Ownership
4. Return to Invoice Cover: Its an added Policy cover which is what loosely said as Coverage at Invoice Value of Car. In case of Theft of Car or Total Loss, then Insurance company will pass on Claim as per Invoice value of Car (including Registration and Road Tax Charges) - that is Car Covered at 100% of Invoice Value for first 3 years.
However has some exclusions like if stolen vehicle recovered within 90 Days of theft or Final Investigation report is not issued by Police then RTI claim wont be payable.
5. Coverage for Emergency Assistance: Opt in Coverage for Emergency Assistance which includes both Road Side Assistance and Key Loss Protection Cover.
Along with it are some more added covers like
It just cost Rs 1000 a Year means less than Rs 3 per Day to opt for Emergency Assistance Cover.
You can now Calculate Car Insurance Premium in Seconds
6. Tyre Secure: Tyre Secure is additional Premium which covers Damage to Tyre while driving. However that damage does not include
Also, at time of Renewal of Car Insurance for anyone having NCB to tune of 35% to 50% can opt for NCB Protection Cover
NCB Protection Cover: Essentially, a single claim voids No Claim Bonus on Car. For same is NCB Protection Cover where if a Car Damaged.
But this add on cover has fine terms and conditions to it where most important is that Car should be Parked and not driven on road for purpose of claim. So, when a loss occurs to Parked Vehicle by external means like
So essentially Vehicle Owners which already having high NCB Cover should consider cover.