HDFC ERGO Car Insurance Add On Covers

Founded in 2002 following a joint venture between Germany’s ERGO International AG and HDFC Limited, the general insurer currently has its presence all over the country with over 100 branches and an employee base of more than 2,000 professionals. Offering a plethora of insurance products, HDFC ERGO has a number of car insurance add-on covers for its customers as well. With the add-on covers, car insurance policyholders can customise their insurance policy to suit their needs and reduce the out-of-pocket expense following a claim. In short, the add-on covers, which can be purchased over and above the premium of the car insurance policy, enhance the protection of the car and reduce the expenses to cover for damages over the claim amount.

HDFC ERGO car insurance add-on covers

HDFC ERGO car insurance policyholders who have availed a comprehensive insurance policy can purchase any of the below-listed add-on covers to enhance the protection of their vehicle and reduce the cost they will have to spend over the claim amount. Policyholders can avail any of the below-listed add-on covers based on their need:

• Zero depreciation cover

Policyholders are eligible for the claim amount equivalent to the depreciation factor of their car or the insured declared value following an accident causing damage to the vehicle. If the cost of the damages exceed the claim amount, then the policyholder will have to cover the expenses from his/her own pocket. To nullify the depreciation factor, one can opt for the zero depreciation add-on cover. This cover gives the policyholder the benefit of receiving the full claim amount and reducing the out-of-pocket expense. Only coverage for tyres and batteries are not inclusive with this cover and the policyholder can use this add-on cover how many ever times during the policy tenure.

• Loss of use/down time protection cover

If the vehicle of the policyholder is damaged following an accident and needs a few days to be repaired, then this add-on cover covers the cost of using alternate transportation. In addition, this add-on cover is applicable in the case of total loss or if the vehicle is stolen. The add-on cover gives the policyholder Rs.500 per day for the usage of private cars and is subject to maximum of 5 days in the case of partial loss. In the case of total loss or theft, the add-on cover covers the cost of alternate commute for a maximum of 15 days. The coverage for total loss is subject to a one time coverage in the case of theft or total loss and up to 3 cases for situations of partial loss.

• Engine and gearbox protection cover

Since the car insurance policy does not cover expenses to repair the engine or gearbox of the car, having this add-on cover will be financially beneficial to the policyholder. Saving the policyholder a chunk of money, this add-on cover includes repairs and replacement of internal parts of the engine, repair of child parts, labour costs, and costs for engine re-boring, machine charges and compression tests.

• No-claim bonus cover

To encourage policyholders, insurers have the no-claim bonus feature. If the policyholder has a claim-free year, then he/she as part of the no-claim bonus feature is eligible for a premium discount the following year. That said, a single claim will have this privilege being taken away. However, the no-claim bonus add-on cover protects the no-claim bonus status of the policyholder and he/she is eligible for the perks of the no-claim bonus the following year as well even if he/she does make a claim.

• Consumables add-on cover

This add-on cover offers replacement and coverage for replaceable or consumable parts of the vehicle. While the main insurance policy does not include coverage for such parts, the consumable cover ensures that the cost of replacement or fixing such parts is taken care of.

• Emergency assistance service programme

This add-on cover covers the cost of any sort of assistance following a breakdown or an accident or any other related predicaments involving one’s vehicle. This cover offers coverage for cases such as onsite minor repairs, coverage for duplicate keys, battery jump start, change of tyre[s], delivery of fuel, towing charges, and emptying of fuel tank.

• Return to invoice cover

In case of total loss or theft of the insured vehicle, then the insurance company will offer a compensation subject to the insured declared value of the car. While this is just a portion of the value of the car, with the return to invoice add-on cover, the policyholder will be offered compensation equivalent to the showroom price of the car plus expenses such as road tax, etc. However, this add-on cover is not applicable if the stolen vehicle is found within 90 days and if the police do not issue an FIR for the theft of the vehicle.

• Key replacement cover

For policyholders who own high-end cars, replacement of their car keys is an expensive affair. In this situation, this add-on cover will offer coverage for replacement of the car key, subject to a particular amount. However, the coverage is applicable once the vehicle owner submits a police report to the insurer allowing him/her to get a key replacement.

HDFC ERGO car insurance add-on covers FAQs

1. Is the premium of the car insurance policy inclusive of the add-on covers?

No, the add-on covers have to be purchased over and above the premium cost of the insurance policy. The policyholder can choose which add-on cover will suit their need and purchase it when purchasing or renewing the policy.

2. What is the maximum tenure of a HDFC ERGO car insurance policy?

The tenure of a car insurance policy offered by HDFC ERGO is for a span of one year only.

3. How can I buy or renew a HDFC ERGO car insurance policy?

You can purchase or renew your insurance policy online itself using your credit card on the HDFC ERGO website.

4. Is it possible to transfer my no-claim bonus between insurers?

Yes, it is possible to transfer your no-claim bonus between insurers. The no-claim bonus will service as a testimony of you being a responsible driver as well.

5. Is there any benefit of buying the insurance policy online?

Purchasing the policy online will save you time, the policy will be issued instantly and you don’t need to submit any documents.