Car Insurance Policy Add ons Coverages.

New or Renewal Insurance

Policy

Looking to renew Car Insurance. Do not miss to compare various Features and Products
offered by Car Insurance Companies in India

Car Insurance Features Comparison

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

Type - Add ons Insurance

Cover
Zero Depreciation Cover -
Most Popular
Windshield Glass Cover
Return to Invoice Cover
Benefit of Coverage
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
If Front or Rear windscreen glass accidentally breaks and
needs to be repaired / replaced, Insurance company bears
the charges without impacting NCB Bonus
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
 Car Engine can get stalled, if driven with Engine Oil Leakage
at accident or driven in water logged areas or engine
Engine Protector Cover submerged under flood. Engine Protector cover is especially
useful for protecting against very high replacement cost of
Engine in Several Lakhs
Consumables like - Oils (Engine Oil, Brake Fluid, Clutch
Fluid), Coolant, Grease etc are not covered in
Consumable Cover 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
Part of Engine Protector Cover or can be taken Separately
which can happen due to repeated Engine Cranking - when
Hydrostatic Lock Cover car stops suddenly in deep water. Due to repeated attempts
of trying Ignition on - Water can ingress into Engine and lead
to HydroStatic Lock.
Does not include Eletronic items like Laptops / Music System
/ Mobile Phones / Money / Credit Card / Jewellery etc . Only
Loss of Baggage Cover
includes Clothing / Shoe or Personal Toliteries if stolen from
car - This cover is at best avoidable
Especially useful for people with 1 car in family. If Car will
undergo repair for more than a day - then Insurance
Spare Car Clause Cover company will provide Daily Conveyance allowance from Rs
150 to Rs 750 per day - depending on Office - Residence
distance
If vehicle keys which are Lost or Stolen. The covered cost is
Key Replacement limited to the money paid to locksmith to produce a new key
or even replacement cost of locks, if vehicle is broken into
Insurance Company pays towards the cost of overnight stay -
Emergency Transport and of at a distance of more than 50 Kms or taxi charges for
Hotel Expenses returning back, if the motor vehicle has met with an accident
and can not be driven
Does your Car Road Side Assistance Plan is expiring. Now
RoadSide Assistance Opt for Insurance Company Road Side Assistance for
Coverage Repairs in event of minor breakdown, Towing Cost,
Changing flat tyres or Emergency 5 Litre Fuel

Do not miss to check - NCB Protection as coverage in event

of Smaller claims like - Windshield Replacement, Key
NCB Protection Cover Replacement, Roadside Assistance Claim. Generally NCB
does not get impacted - still its wise to cross check with
insurance company at time of sale.
Insurance Premium for Add on Covers
Zero Dep - include Key
Replacement
Windshield Protector
Full Invoice Price
Engine Protector & HydroStatic Lock
Cover
Consumable Cover
Spare Car Clause
RoadSide Assistance
Emergency Transport
Generally 15% to 20% higher of Comprehensive
Premium
Additional 3% to 5% of Comprehensive Premium
Basis IDV Value Difference - Valid in 1st Year Only
Around 10% higher than Zero Dep Premium
Around 3% of Zero Dep Premium
Basis Coverage Amount for Conveyance
Negotiate as part of inclusion. Else Rs 500 to 1000 / yr
additionally
Basis Policy Coverage

Bumper to Bumper Car Insurance. Hidden Clauses in Zero

Depreciation Plans

Date: April 4, 2014

Know about Bumper to Bumper Car Insurance. Pros Benefits and Hidden
Clauses in Zero Depreciation Plan

Zero Depreciation Car Insurance

Introduced in 2009 in India - Zero Depreciation Plans, often referred as
Bumper to Bumper Car Insurance Policy is what an additional
'depreciation cover' cover offered on the car. Its no different than
comprehensive policy, except the fact that -

Parts Depreciation under Comprehensive Policy

» 50% Depreciation is Deducted on all Rubber, Nylon, Plastic Parts,
Batteries and Airbags

» 30% Depreciation is Deducted for 'Fibre Glass' components

» Wooden Parts as per Ageing of Vehicle (5% in 1st Year, 10% in 2nd
Year, 30% in 3rd Year etc)
while under Bumper to Bumper plans - no depreciation will be deducted on
any of these, except Battery & Tyres

However, some salient points while taking Car Insurance

» Compulsory Deductible of Rs. 1000 is there in event of claim (in both

Comprehensive & Zero Dep plans)

» Claim will be considered Void, if the person driving car was without
driving License

» If the person driving car was found intoxicated by drugs or under

influence of Alcohol

» If Both Car Keys are Lost or Stolen - and Car is also stolen - Claim would
be Null and Void, unless an FIR for Missing Car Key is reported in Nearest
Police Station - before the actual asset i.e Car Stole
Policy Exclusions - Not Covered under Zero Depreciation
Plans
» Any Kind of Consequential loss, unless an additional cover take. For instance - hydrostatic
lock or Engine Protector due to consequential factor (unless covered with an additional cover
- Engine Protector is when Engine gets Seized due to water ingression or Engine Oil leakage
due to which Engine gets stalled)

» Does not Cover Mechanical Breakdown (as that what would be covered under warranty &
not under insurance)

» Does not Cover Cost of Consumables and Oil (Engine Oil, Brake, Clutch Oil, Gear Oil,
Coolant etc) Change in Car, even if its accidental repair

» No Cover also for routine Maintenance Items or Wear and Tear Items including Clutch
Plates, Friction Disc, Oxygen Sensor, Engine Mounts, Bearings etc

» Tyres Claim is allowed only when damage is due to accident including body shell also
damaged. No cover only allowed for Tyres - if damage only has occured to Tyre

Important: Unless agreed upon, Salvage Value of the Parts (Scrap Value as assessed by
Insurance Surveyor of Parts damaged & replaced under Insurance) will be deducted from
Claim Amount - Though Some Companies declare it as 5 to 7% corresponding value of new
parts

Car Insurance Claim Rejection

Below are only some of the major Top 10 reasons (as considered as generic exceptions in
Fine Policy wordings) of Insurance company where they can deny the claim or call it Void

These are generic exceptions (Tata AIG, ICICI Lombard, Bharti Axa, Bajaj Allianz, New
India, National Insurance Policy etc.) and may or may not represent exact exception as used
in the Policy wordings. For exact reasons - pl refer the exception policy of Motor Insurance
Companies

Reason 1 Any accidental loss / damage / liability caused outside the geographical area -

IRDA has defined 2 Geographical locations (High Risk Zone as Zone A - which are Metro
Cities - Delhi, Mumbai, Chennai and Kolkatta) & Zone B as Rest of India. Generally, motor
insurance policy provided in India is applicable throughout the country. The policyholder can
file a claim even if the accident takes place in city or location other than where the policy was
issued.
However - one should still cross-check the policy statement clearly . Geographical area zone
if defined as Zone, Insurance company has a right to deny the claim - if claim happens
beyond that zone.

Reason 2 Any Accidental loss - where the car is been driven by or is for the purpose of being
driven by him/her in the charge of any person other than a Driver as stated in the Driver's
Clause.

Reason 3 Any accidental loss damage and/or liability directly or indirectly arising out of or
in connection with war, invasion, the act of foreign enemies, hostilities or warlike
operations, civil war, mutiny rebellion, military or usurped power

Reason 4 Any accidental loss or damage suffered whilst the Insured or any person driving
the vehicle with the knowledge and consent of the Insured is under the influence of
intoxicating liquor or Drugs

Reason 5 The Company shall not be liable to make any payment in respect of Consequential
loss (Consequential loss means Indirect losses which occurred due to accident - like time or
failure of reaching your destination on time due to accident etc), depreciation, wear and tear,
mechanical or electrical breakdown, failure or breakages

Reason 6 Any Consequential damage to the car is not payable by the insurance company
(Example of Consequential damage - If a car has met an accident and has started Engine Oil
Leakage. If the person driver does not switch off the engine - the Engine of the car can seize
and effectively is not payable for repairs and is neither covered in Car Insurance policy)

Reason 7 Deliberate Accidental loss where in court of law is proven for purpose which is
deliberately - due to what so ever reason - will not be covered under Car Insurance

Reason 8 If the car is not covered with Additional Zero Depreciation cover - Plastic Parts,
Rubber parts will carry depreciation as per there own slabs - which is upto 50%

Reason 9 Insurance is based on principle of utmost Good faith. If you have taken a claim
before with some other insurance company and while transferring the policy has by intention
or by mistake or by any other reason take NCB (no claim bonus) with same or some other
insurance company - any future claim even after a year or in next policy would also be
treated as Void - however small or big the loss could be.

Reason 10 If accident or theft happened beyond a single day after expiry of the policy, the
claim on it will not be payable by the Insurance company. As its a legal under-writing contact
which expires on the date as mentioned on the policy note.