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Car Insurance Add on Covers. Zero Dep, RTI, Engine Protect with 100% Cover

Car Insurance Add on Covers. Zero Dep, RTI, Engine Protect with 100% Cover

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


Car Insurance Covers

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

  • IDV - Insured Declared Value of Car. Generally set at 95% of Ex-showroom Price of Car. Been in a New Car, while is presumed that when the car touches road - it immediately loses 5% Value, hence Insurance company take it as base to make IDV at 95% of Ex-showroom Price in regular comprehensive Policy.
  • PA - Personal Accident Cover which is what Mandated by Government to be for 15 Lakh for Owner Driver. Its essential before buying Car Insurance
  • Bumper to Bumper - Essentially is what a loose name of Zero Depreciation Insurance. Car is made of several metal and fiber parts which attract depreciation. Also any Paint work if done on car attracts depreciation, same is what covered under Bumper to Bumper Policy 
  • Compulsory Deductible - Its like loosely called as File Charge where when a Vehicle Owner files for claim has to pay Rs 1000 (Mandatory Charges) for Vehicles with Engine Capacity under 1500cc and Rs 2000 for Vehicles with Engine Capacity under 2000cc. So - this is compulsory charge which is required to be paid irrespective of claim type for lodging a claim with Insurance Company as per IRDA Guidelines.


Car Insurance Components

In Car Insurance terminology:-

  • First party is the owner of the vehicle
  • Second party is the insurance company
  • Third party is the person/group with whom one has met an accident or co-passengers in the car who have suffered due to your car collision or accident.


There are 2 Covers in Car Insurance

Own Damage Cover: Covers Risk associated with Vehicle. Essentially Includes

  • Basic Comprehensive Cover: Covers for Theft and Accidental Claim Settlement of Car along with optional add on covers for Zero Depreciation, Consumables and all


Liability Insurance: Covers Risk associated with Third Party

  • Cover loss incurred to another person (upto Rs 7.5 Lakh) with whom you have met an accident. Also includes Personal Accident Cover for Owner Driver which is set at Rs 15 Lakh. Also are some optional covers like legal liability to Paid Driver or Personal Accident Cover for other Co-Passenger in Car.


Car Insurance Add on Covers

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. 

Depreciation in Car Insurance


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

  • If driven with Engine Oil Leakage at accident or
  • Engine Damaged due to Water Ingressed in

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

  • Emergency Road Side Assistance Cover for Battery Jump Start, Puncture Tyre Change, Fuel Delivery in case of No Fuel, Minor Repairs and Towing of Vehicle to nearest workshop as per T&C of Insurance Company
  • Emergency Assistance Wider (Key Loss Protection Cover, Stolen Key Cover)

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

Calculate Car Insurance Premium


6. Tyre Secure: Tyre Secure is additional Premium which covers Damage to Tyre while driving. However that damage does not include

  • Puncture
  • Side Wall Cuts
  • Manufacturing Defect in Tyre


Exclusive NCB Protection Cover at Time of Renewal

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

  • When a Parked Car is impacted due to Floods, Earthquake or say Tree fall on the Parked Car and damaging car or say even damaging Windsheild then in such a case claim happened for repair then it wont impact NCB Bonus as what accumulated by Individual as on date.

So essentially Vehicle Owners which already having high NCB Cover should consider cover.  



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Comments 1

Guest - Pramod Ghadge on Thursday, 15 July 2021 19:08

Honda city diesel 2014 , renewl insurance

Honda city diesel 2014 , renewl insurance
Tuesday, 26 September 2023

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