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Twenty different add-on options help vehicle owners customize policies to address specific risks like engine damage, theft, and emergency situations.
07 Aug 2025 | 8756 Views | By Autocar Pro Branding Feature
Purchasing a car is a significant milestone for many individuals. However, it brings financial responsibility with convenience and comfort. With increasing instances of road accidents, unpredictable weather events, and theft, having a comprehensive motor insurance policy is essential.
While comprehensive and third-party motor insurance plans provide a safety net, ...
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Purchasing a car is a significant milestone for many individuals. However, it brings financial responsibility with convenience and comfort. With increasing instances of road accidents, unpredictable weather events, and theft, having a comprehensive motor insurance policy is essential.
While comprehensive and third-party motor insurance plans provide a safety net, they might not cover every situation. This is where add-on covers in car insurance play a crucial role.
Add-ons are optional enhancements that you can add to your car insurance plan to extend the scope of coverage. They are particularly useful for those who want tailor-made protection.
Understanding the Basics: Third-Party vs Comprehensive Cover
Before delving into the details of car insurance online add-ons, it is crucial to understand the two primary types of motor insurance:
1. Third-Party Motor Insurance
As mandated by the Motor Vehicles Act, every car owner in India must hold a third-party motor insurance policy. This type of insurance offers financial protection against liability arising from injury or property damage to a third party. However, it does not cover damages to the insured vehicle or its occupants.
2. Comprehensive Insurance
A comprehensive plan combines third-party liability cover with own damage protection. It includes coverage against theft, natural disasters, fire, riots, accidents, and more. Still, certain aspects, such as engine breakdown due to water ingress or the cost of consumables, may remain excluded. But choosing relevant add-ons can help fill these gaps.
Why Add-ons Matter in Car Insurance
Add-ons are not just optional extras; they are strategic tools that allow you to personalise your protection. Here’s how they enhance a base insurance plan:
1. Boost Overall Coverage
Add-ons can ensure that almost every possible contingency, ranging from accidental fuel misplacement to tyre damage on rugged terrain, is included in the plan.
2. Financial Relief During Emergencies
With the right add-ons, car owners can claim expenses related to emergency hotel stays, roadside assistance, or even vehicle towing.
3. Preserve No Claim Bonus (NCB)
An NCB protection cover allows one to retain the discount even after making a claim, an advantage for careful drivers who want to safeguard long-term savings.
4. Reduce Out-of-Pocket Costs
Certain repairs and replacements, such as those for glass or plastic components, may not be fully covered under standard plans. Add-ons like zero depreciation or repair-specific coverage ensure minimal expenses for the policyholder.
Popular Add-On Covers to Consider
Each car owner has unique needs, and insurance companies offer a range of add-ons to meet them. Tata AIG offers a wide range of add-on options in car insurance online. Here is a list of the available add-ons:
1. Depreciation Reimbursement
This add-on protects you from the financial impact of depreciation when your car parts are replaced after a damage claim. Normally, insurance companies deduct a certain percentage from the cost of parts depending on the car’s age, but with this add-on, you will be reimbursed the full amount for replaced parts without any deduction. It applies to the first two claims made under the own damage section of your policy during the insurance period. This means if your bumper or door panel is replaced, you do not need to pay anything out of your own pocket for depreciation.
2. Return to Invoice
If your car is stolen or declared a total loss after a major accident, this cover helps you recover more than just the depreciated value. It pays the difference between your car’s insured declared value and its on-road price. The on-road price includes registration fees, road tax, and insurance costs. You will get enough money to buy a new car of the same make and model as your old one. However, this benefit applies only if the total loss or theft claim is valid under your policy and you submit a final police investigation report confirming the theft. It also does not apply to obsolete models.
3. No Claim Bonus Protection Cover
Usually, making a claim means you lose your No Claim Bonus, which is a discount you earn for driving safely without making any claims. With this add-on, your No Claim Bonus remains protected even if you file a claim, as long as you have not made more than two claims in the past three years. Only one own damage claim can be made in the current policy period for this protection to apply. This cover helps you maintain your premium discounts and rewards your safe driving, even if you are unlucky enough to need a claim.
4. Third-party Property Damage Cover
This add-on offers protection if your vehicle accidentally damages someone else's property. For example, if you lose control and crash into a neighbour’s boundary wall or a parked vehicle, this cover will pay for the repair costs. The payment is made directly to the third party, as per the limit mentioned in your policy. This add-on provides a useful safety net and ensures that you are not personally liable for accidental property damage, which could otherwise become expensive.
5. Engine Secure
This add-on is particularly helpful during rainy seasons when cars are more likely to face engine damage due to water ingress. It covers the repair and replacement costs for damage to the engine, gearbox, transmission, and other mechanical components caused by the leakage of oil or water entry. However, it will not cover damage due to corrosion from delayed reporting or wear and tear due to ageing. It also excludes damage from failure to retrieve the vehicle from a waterlogged area in time.
6. Repair of Glass, Fibre, Plastic, and Rubber Parts
This cover allows you to repair damaged glass, plastic, fibre, or rubber parts without affecting your No Claim Bonus. It is applicable only if the repair is done at an authorised service centre or workshop and no other damage has occurred to the car. If you choose to repair rather than replace, your No Claim Bonus remains safe at the next renewal. It is a practical add-on for minor fixes like side mirrors, bumpers, or door trims, though it does not cover only painting jobs without any physical damage.
7. Key Replacement
Losing your car keys can be stressful and expensive. This add-on reimburses the cost of replacing your lost or stolen keys. It also covers the expense of replacing your car locks if your vehicle is broken into. The claim includes the labour cost of fitting the new lock system. However, the benefit is available only if you own the vehicle for personal use. If the car is used commercially or belongs to someone else, this add-on will not be valid.
8. Tyre Secure
This cover pays for repairs or replacement if your tyres are damaged accidentally due to road conditions such as potholes or sharp objects. If the damage affects the tubes or tyres beyond safe use, this add-on helps cover the cost. However, it does not include damage due to natural wear and tear, uneven wear caused by defective steering, or accidents not reported within 15 days. It is also not applicable if the vehicle is a total loss. This cover is useful for those who travel frequently on rough or poorly maintained roads.
9. Loss of Personal Belongings
This add-on covers the loss or damage of personal items in your vehicle during an accident or theft. It includes your and your family’s belongings that are directly damaged by accident or stolen from the car. There is a small deductible of ₹250 per claim. However, it does not cover money, jewellery, watches, cheques, documents, or professional tools and samples. If you usually keep personal items like electronics or bags in your car, this cover provides extra security and peace of mind.
10. Consumable Expenses
Consumables like engine oil, brake fluid, nuts, bolts, air conditioning gas, and other small but essential materials are usually not covered in a regular claim. This add-on covers those items if they need to be replaced due to damage in an accident. However, it is only valid if the repair is done at an authorised garage, and the claim must be valid under the own damage section of your policy. If your car is repaired at an unauthorised service centre, the benefit will not apply. It is a small but smart cover that can reduce out-of-pocket expenses during repairs.
11. Additional Towing Charges
If your car breaks down or gets damaged and needs to be towed, your standard policy might cover basic towing. But if the cost goes beyond the standard limit, this add-on helps cover the extra amount. It applies when your car is disabled due to an accident or mechanical failure and needs to be moved to a garage. Proof of towing expenses must be submitted, and the vehicle should not be under a manufacturer recall or warranty issue. This add-on is very helpful if you travel long distances or live in an area far from repair centres.
12. Misfuelling
Filling the wrong type of fuel in your car, like petrol in a diesel car or vice versa, can cause serious engine damage. This add-on covers the cost of flushing out the wrong fuel and replacing damaged parts due to misfuelling. It reimburses up to ₹2000 for each incident, with only one claim allowed during the policy period. This cover is especially useful for families sharing a car or for drivers who switch between vehicles regularly, as misfuelling accidents can happen easily and lead to costly repairs.
13. Daily Allowance Plus
If your car is under repair after an accident, the Daily Allowance add-on helps you manage transport expenses during that time. You will receive a daily allowance for the number of days mentioned in your policy to cover taxi or other transport costs. If you do not want the allowance, you can opt for a Courtesy or Hire Car, which helps you get around until your car is fixed. The hire car will be provided for a maximum of 15 days. This cover is not valid if the vehicle is stolen or declared a total loss. It is ideal for people who rely heavily on their car for daily commuting.
14. Emergency Transport and Hotel Expenses
If your vehicle breaks down during a trip or is immobilised due to an accident, this add-on helps pay for taxi charges and hotel stays, so you can get back home or to the nearest city. The benefit applies only when there is a valid and accepted insurance claim related to the accident. It provides relief when you're stranded away from home and ensures you’re not burdened with unexpected stay or travel costs due to a car issue.
15. Roadside Assistance
This service helps you when your car breaks down unexpectedly. It offers support for situations like flat tyres, battery failures, and fuel delivery. It also includes towing, help for key lockouts, hotel accommodation, and continuation of your journey. However, it does not cover loss of personal belongings or help during racing, rallies, or other unauthorised activities. This is an excellent add-on for those who drive long distances or frequently travel with family, as it ensures you're never left alone in a tough situation on the road.
16. Emergency Medical Expenses
This add-on covers medical treatment costs if you or your passengers are injured in an accident involving the insured car. It is valid when injuries are directly caused by the accident, either while getting in or out of the car or while driving. It only covers visible injuries that require hospitalisation and treatment. It does not include medical issues unrelated to the accident, such as pre-existing illnesses or general health problems. This benefit adds an extra layer of protection for your well-being during unfortunate events.
17. Electric Surge Secure
Electrical damage can occur due to voltage fluctuations or short circuits, especially during storms or faulty installations. This add-on helps pay for repairs or replacements if such damage occurs to your car’s electrical system. The benefit is valid only if the damaged battery or electrical component is covered in your insured declared value or endorsed in the policy. It does not apply to manufacturing defects or failures to follow instructions. This is a must-have cover if your car is parked outdoors or in an area prone to power fluctuations.
18. Depreciation Allowance – Battery
Battery costs are often reduced due to depreciation when replaced after a claim. This add-on ensures you get the full or partial cost of the battery without bearing the depreciation loss. You can choose either a zero deductible or a fixed five percent deductible with a minimum of ₹500 per claim. The cover is only valid if the battery is included in the insured declared value or endorsed in the policy, and repairs are done at an authorised workshop. This can be helpful for those who want to avoid surprise expenses after a battery-related breakdown.
19. Vehicle Loan Protector
If the car owner passes away or suffers permanent total disability due to an accident, this add-on helps by paying the pending car loan amount. The claim is valid only if the incident happened while driving or using the insured vehicle. It does not cover incidents involving self-harm, intoxication, or when the vehicle is stolen or a total loss.
20. Reinstate Cover
If a car panel is damaged, this add-on allows you to repair it later under a separate claim, even if the damage was reported earlier. It is useful when damage occurs but is not claimed immediately. The benefit applies only if the repair is done at an authorised service centre. Only one claim can be made under this cover during the policy period. The add-on does not cover cosmetic items like stickers or emblems. It ensures flexibility and peace of mind for minor damages you choose to repair at a later time.
Choosing the Right Add-Ons
Add-ons offer valuable support but come at an additional cost, so it’s important to choose based on your needs.
Urban Commuters can benefit from key replacement, engine secure, and roadside assistance.
Frequent Travellers should consider roadside assistance, daily allowance plus, and emergency transport covers.
New Car Owners may prefer return to invoice, depreciation reimbursement, and misfuelling protection.
Electric Vehicle Owners should opt for electric surge secure and battery depreciation allowance.
Final Thoughts
While third-party motor insurance is a legal necessity, it offers limited protection. A comprehensive plan, combined with thoughtfully chosen add-ons, ensures wider coverage, greater peace of mind, and an improved claim experience.
Add-ons enable vehicle owners to create a policy that aligns with their lifestyle and driving habits. From preserving the car's value to protecting against rare but costly incidents, these optional covers can make a significant difference.