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List of Essential Car Insurance Add-on Covers This Monsoon!

By Vikas Chandra Das
21 July 2022, 11:46 AM

Who doesn't love when their car swooshes through a puddle of water, making the water fly beautifully up till the windows? And the musical sound of raindrops pitter-pattering against the windshield. How often have you jumped out of your sofas at the thought of going for a long drive in a drizzle complemented by your favorite jazz tunes? A lot, we bet!

As you descend the trip down your memory lane, we also want you to stop and think about the thing that made all these beautiful memories possible. It was your trusty car, of course! Have you ever wondered if your car also enjoys the monsoons as much as you do?

What are Car Insurance Add-on Covers?

We cannot stop the rain from falling, but we sure can protect our car from all monsoon hazards by purchasing insurance add-on covers. Add-on covers come into the picture when we need to enhance our car insurance policy to protect our car from particular need-based risks. Some examples of car insurance add-on covers are- no depreciation cover, engine protect, return to Invoice, NCB protect, roadside assistance, accidental coverage for passengers, daily allowance, key replacement compensation, and consumables cover. Each of these has been explained in detail in this article as you read ahead.

1. Zero Depreciation Cover

The value of your car and its parts decreases with time due to wear and tear caused by regular use. So when you claim, the insurer gives you the settlement amount only after factoring in the depreciation resulting in you getting less than you might have claimed.

Below is a table showcasing the depreciation rates of a car

Age of the CarDepreciation(%)
6 months and below5%
6 months to 1 year15%
1 year to 2 years20%
2 years to 3 years30%
3 years to 4 years40%
4 years to 5 years50%

As the name suggests, Zero Depreciation Cover reimburses the amount deducted from your claim due to depreciation. During the monsoons, Zero Depreciation Cover becomes almost obligatory for your car to protect against the damage caused to the paint, tyres, batteries, and rubber and plastic parts of your car.

For example- your car meets with an accident and you approach your insurance company for a claim. Without zero dep cover,  your insurance company will deduct the depreciation value from the actual damaging/repairing cost of your car. Hence, offer you the remaining claim amount. Well, which means, the policyholder has to pay the difference from his own pocket.  

But with zero dep cover, this is not the case, as the policy owner will get the complete claim amount from the insurance company without depreciation deductions.

2. Engine Protect Cover

The engine is the central vein of a car. Engine Protect Cover secures you against financial losses caused due to engine repair costs. Engine Protect Cover is beneficial because repairing costs associated with a car engine is often too high. The risk of engine failure is the highest during the monsoon season due to the common phenomenon of water ingression and hydrostatic lock. Water ingression when rainwater that seeps inside the car engine through the bonnet leads to an engine failure. Another common hazard is a hydrostatic lock. An engine failure is often a result of repeated attempts of starting a moist engine. Engine Protect Cover protects against both of these hazards.

3. Return To Invoice

During monsoons, older cars that suffer from an engine breakdown are often beyond repair, or the estimated cost of repairs is too high to be worthwhile. It is called a case of a complete loss. In such a case, the insurer gets the car ownership, and the policyholder is paid an amount calculated by the insurer after factoring in the depreciation to the current value of the car. Return to Invoice is an add-on option covering the gap between the insured declared value and the invoice value of your car, along with the registration and other applicable taxes. RTI helps you in fetching the purchase value (on-road price) of the car in case of theft or total loss.

For example- The on-road price of a Maruti Suzuki Alto in the year 2020 was INR 6,00,000. However, the same car’s IDV in the year 2021 would be INR 5,10,000 (assuming a depreciation of 15% in 1 year). So, how much claim amount one can get in case of theft/total damage of a car in the year 2021?

Well, a policyholder can claim the on-road price of a car, which is INR 6,00,000 as he has opted for Return to Invoice Cover. However, without this cover, he can only get the price equal to the IDV of the car, i.e. INR 5,10,000. 

4. No Claim Bonus Protect

The No Claim Bonus is a reward for the policyholder for judicious driving. If the policyholder makes no claims to the policy, he is entitled to huge discounts on the policy's premium. Monsoons are when the car suffers more damage, and the probability of claims increases, so NCB Protect helps you keep your NCB intact. The NCB Protector protects Your Earned No Claim Bonus, in the event of an Own Damage claim made for Partial Loss, including claims for Windshield glass, Total Loss, and Theft of vehicle/ accessories. The No Claim Bonus will not get impacted for the first 2 claims preferred during the policy per year. 

5. Roadside Assistance

Roadside Assistance covers the following things -

  • Tyre Assistance - replace a flat or damaged tyre with the spare or give you a tow.
  • Flat Battery - come and jump-start your vehicle.
  • Lock Out Service - if you're locked out, helping you get in.
  • Fuel Delivery - if you run out, delivering fuel to your location.
  • Lost Key - give you a replacement should you lose your key.

This cover is not only useful for the monsoon season but throughout the year.

6. Accidental Coverage For Passengers

During monsoons, the roads tend to become slippery, which increases the risk of accidents.

Personal Accident Insurance for Passenger covers monetary pay-outs towards injuries sustained to passengers in a commercial vehicle in an accident. The add-on covers are:

  • Capital Sum Insured for which the maximum amount is INR 2 lakhs per person
  • Permanent total disablement
  • Permanent partial disablement
  • Accidental Death

7. Daily Allowance

The daily allowance is a per day compensation paid to the insured in an incident such as hospitalization, hijack, etc. Since the likelihood of accidents increases during monsoons, the hospital charges also become an added burden on the policyholder. Daily Allowance Protect helps to cover these costs.

8. Key Replacement Compensation

Cars have technologically advanced, especially modern electronic key Frequency Operated Buttons (FOBs). They are a lot more expensive to replace than the traditional car key. Key Replacement Cover is an Add-on to your Comprehensive car insurance policy and not a standalone cover. With an additional premium, the Key Replacement Add-on will cover the cost of replacing the insured vehicle's key.

9. Consumables Cover

Everything that your car continually uses to run – which, once used, cannot be repurposed again is covered under it. This includes the replacement costs of:

  • Lubricants and oils such as engine oil, brake oil, air conditioner refrigerant, radiator coolant, etc.
  • Nuts, bolts, screws, washers, grease, etc.

Don't let the monsoon stops you from creating memories by worrying about your car's health. Equip yourself with all these great add-ons and have a fun drive in the drizzle.

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