Why Your Car Insurance Policy Will Not Pay The Full Cost Of Damages Or Repairs?

Even if you purchased a conventional motor insurance policy for your vehicle, the insurer might only cover a portion of the total repair costs upon filing an own damage (OD) insurance claim. If this happens, you must pay the remaining sum out of your own pocket. The following are two main reasons the insurance company will take this action. *

One is the required deductible, which is present in all motor insurance policies regardless of the insurer you choose. This is in accordance with the requirements of the automobile tariff, which require the insured to cover a predetermined portion of each claim out of pocket. This sum is pre-determined at the moment the policy is purchased based on the size, class, and cubic capacity of the vehicle.     *

The second element concerns the kind of insurance you’ve purchased. A basic standard car insurance policy covers damages to the vehicle less depreciation on some replacement goods like plastic, rubber, tubes, and tyres, etc., depending on the car’s age.

What You Need To Understand About Add-Ons^

Riders or add-ons can be purchased at the same time as the insurance. These add-ons cover some costs that a typical policy would not normally cover. You should generally consider opting for add-ons with a comprehensive car insurance policy if your vehicle is not older than five years.

^Claims are subject to terms and conditions set forth under motor insurance policy.

Here are some examples of the riders you can obtain:^

  • Depreciation-Free Coverage^

It enables you to receive a significant portion of the total repair expense without considering the value of the replaced parts’ depreciation. The zero depreciation add-on does not apply to tyres, tubes, or batteries. Therefore, your insurance will apply the depreciation charges per IRDAI rules and regulations even if you have a zero depreciation add-on. # *

  • Engine Cover Protection^

The engine protection add-on covers significant damage to the engine and gearbox internal components caused by water intrusion and lubricating oil leaks due to an accident. *

You must know that the manufacturer’s guarantee does not cover such damages. 

Engine protection add-on is typically part of zero-depreciation coverage for many insurers, so if you have it, no depreciation is applied to your vehicle’s engine for internal component damage from an accident.


For example, i     f your three-year-old vehicle’s engine is damaged and needs replacement, the insurer will apply depreciation and pay you the depreciated amount for the engine parts if you have engine protection but not zero depreciation add-on.

  • Consumables Include^

This add-on pays for the costs of consumable parts that result from damage to the insured vehicle, such as engine oil, nuts, and bolts. Once more, this expense is not protected by a typical ordinary car insurance policy.

^Claims are subject to terms and conditions set forth under motor insurance policy.

A car insurance premium calculator is a tool you may use online to determine the coverage required based on your needs.

*Standard T&C Apply

#     Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.