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Car Insurance Policy Add on Covers for Engine, Zero Depreciation in New and Renewals

Car Insurance Policy Add on Covers for Engine, Zero Depreciation in New and Renewals

Top 10 Popular Add ons Covers for Car Insurance offered by ICICI, Bajaj, TATA, Bharti, RSA, HDFC, National Insurance in form of Depreciation, Engine, Windshield, NCB


Car Insurance Cover

Car Insurance is not a product to be taken Blind Foldly - as sold by Dealer Executive or Insurance Agent.

Its an essential cover - which protect against unexpected loss / theft / repair and is an essential part to make car ownership experience hassle free.

Through this article we attempt to cover in various add on covers offered by car insurance companies -- so as to help in making an informed purchase decision at time of buying car insurance.

Basic Covers offered under Comprehensive Car Insurance are:-

» Theft of Car 

» Loss/Damage to Car to extent of Repair or IDV Value in case of Total Loss

» 3rd Party Liability - incurs loss to other vehicle or Driver

But - now Insurance Companies are offering many Tailored Products to offer customers Peace of Mind Ownership by providing - Engine Protector Cover, Depreciation Cover along with Optional Cover for Consumables to coverage for On Road Price in 1st Year (so as to protect car from potential stolen case for brand new cars - which is on highest these days) 

Prominent Insurance Players in Indian Market are:-

ICICI Lombad Bajaj Allianz
HDFC Ergo Tata AIG
Royal Sundaram Bharti Axa
National Insurance New India Assurance

Below are certain features and add on covers which needs to be known under Car Insurance so as to protect your car against unforeseen losses.

Add on Coverages in Car Insurance

Type - Add ons Insurance Cover Benefit of Coverage
Zero Depreciation Cover - Most Popular Depreciation is imposed at 30% to 50% on Plastic, Rubber, Glass Parts. With Zero Dep Plan - no depreciation is deductible or paid by owner. Available for maximum upto 5 yr Old Car
Windshield Glass Cover If Front or Rear windscreen glass accidentally breaks and needs to be repaired / replaced, Insurance company bears the charges without impacting NCB Bonus 
Return to Invoice Cover  Covers the Vehicle at Original 100% On Road cost including Road Tax been Paid. Available only in 1st Year. Useful to recover sum in case of Vehicle Theft or Complete Loss of Vehicle
Engine Protector Cover Car Engine can get stalled, if driven with Engine Oil Leakage at accident or driven in water logged areas or engine submerged under flood. Engine Protector cover is especially useful for protecting against very high replacement cost of Engine in Several Lakhs
Consumable Cover Consumables like - Oils (Engine Oil, Brake Fluid, Clutch Fluid), Coolant, Grease etc are not covered in Comprehensive or Zero Dep Policy. But - there's a separate add on cover wherein Consumables if changed due to an accident - will be borne by Insurance Company
Hydrostatic Lock Cover Part of Engine Protector Cover or can be taken Separately which can happen due to repeated Engine Cranking - when car stops suddenly in deep water. Due to repeated attempts of trying Ignition on - Water can ingress into Engine and lead to HydroStatic Lock.
Loss of Baggage Cover Does not include Eletronic items like Laptops / Music System / Mobile Phones / Money / Credit Card / Jewellery etc . Only includes Clothing / Shoe or Personal Toliteries if stolen from car - This cover is at best avoidable
Spare Car Clause Cover Especially useful for people with 1 car in family. If Car will undergo repair for more than a day - then Insurance company will provide Daily Conveyance allowance from Rs 150 to Rs 750 per day - depending on Office - Residence distance
Key Replacement If vehicle keys which are Lost or Stolen. The covered cost is limited to the money paid to locksmith to produce a new key or even replacement cost of locks, if vehicle is broken into
Emergency Transport and Hotel Expenses Insurance Company pays towards the cost of overnight stay - of at a distance of more than 50 Kms or taxi charges for returning back, if the motor vehicle has met with an accident and can not be driven
RoadSide Assistance Coverage Does your Car Road Side Assistance Plan is expiring. Now Opt for Insurance Company Road Side Assistance for Repairs in event of minor breakdown, Towing Cost, Changing flat tyres or Emergency 5 Litre Fuel
NCB Protection Cover Do not miss to check - NCB Protection as coverage in event of Smaller claims like - Windshield Replacement, Key Replacement, Roadside Assistance Claim. Generally NCB does not get impacted - still its wise to cross check with insurance company at time of sale. 


Know More

Car Insurance Calculator

Hidden Clauses in Car Insurance

Car Insurance Claim Rejection Reasons


Insurance Premium for Add on Covers 

Zero Dep - include Key Replacement Generally 15% to 20% higher of Comprehensive Premium
Windshield Protector Additional 3% to 5% of Comprehensive Premium
Full Invoice Price Basis IDV Value Difference - Valid in 1st Year Only
Engine Protector & HydroStatic Lock Cover Around 10% higher than Zero Dep Premium
Consumable Cover Around 3% of Zero Dep Premium
Spare Car Clause Basis Coverage Amount for Conveyance
RoadSide Assistance Negotiate as part of inclusion. Else Rs 500 to 1000 / yr additionally
Emergency Transport Basis Policy Coverage
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Friday, 25 September 2020

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