Are Airbags Covered in Indian Car Insurance Policies?

Posted on: Aug 29, 2022 | 3 Min | Written by: HDFC ERGO Team

Are Airbags Covered in Indian Car Insurance Policies?

If you look at the statistics, it will reveal that car airbags have saved thousands of lives over the years throughout the world. It is a matter of necessity to further secure your safe ride. Its primary function is to lessen the impact of collision during hard braking and reduce the level of injury to the passengers. Although the usage of airbags in Indian cars is still significantly low compared to other countries, it is gradually increasing at a rapid and consistent pace.

With so many types of airbags available, you would definitely want to know if are airbags covered under insurance. Of course, you will want all the essential components of your vehicle to be protected in case of an unforeseen circumstance.

How Do Airbags Work?

To understand the importance of the proper replacement of the airbags, we need to first understand the working mechanism of the airbags.

Airbags are an important safety feature which automatically inflate on an impact and deflate when you come in contact with them.

When your car experiences any collision, the impact sensors send necessary signals to the airbags for deploying the passenger and the driver. They are capable of preventing heavy, serious injuries or even death under certain circumstances.

When a seatbelt maintains the seating position of the passenger and the driver, the airbag capably supports their head. Generally, airbags are used in juxtaposition with seatbelts and inflate to supply the necessary support.

Airbags are termed as a supplementary restraint system, which significantly lowers the risk of injury to both the upper and the lower body that may develop when it hits the steering wheel or the car dashboard under any accidental circumstance.

The style and the number of airbags present in the vehicle depend exclusively on the make, model, and variant of the car. These airbags have become the most highlighting feature of current generation vehicles, especially the bigger ones, succumbing to the risks of accidental injuries.

Are Airbags Covered in a Car Insurance Policy?

We are all aware of the fact that there are two basic types of car insurance plans: the basic third-party car insurance and the comprehensive insurance plan . As the name suggests, the third-party plan only covers the third-party loss and damage of the vehicle caused by your vehicle under any accidental circumstance. On the other hand, a comprehensive plan covers for own damage cover too, along with third-party damage.

A comprehensive car plan acts as strong financial protection for your car, protecting it from loss or damage caused due to any accident, natural calamities, fire, or theft. Under normal circumstances, most car owners, especially for the more luxurious cars, never find it enough to cover all their necessities and opt for expanding the scope using additional add-ons.

It is even advisable to ensure optimum coverage using all the necessary add-ons, especially for new and more luxurious cars, even if it requires you to pay an enhanced premium.

However, comprehensive insurance is not optimum and does not provide complete coverage as per requirement, missing out on several essential liabilities. Generally, it excludes the cost of normal wear and tear of your vehicle, technically termed depreciation.

When any part is replaced, the depreciation rates are applied as follows:

● Zero deductions for glass-made parts in the vehicle

● 30% depreciation on all the components of fibreglass present in the vehicle

● 50% depreciation rates are applied on vehicle parts made of nylon, plastic, rubber-like batteries, tyres, tubes, airbags, etc.

Therefore, you can well see that the zero depreciation car insurance plan covers airbags, although it is not entirely covered as the depreciation rate gets applicable in this particular component of the vehicle. However, when you are opting for zero dep coverage, you are liable to receive compensation for the entire loss or damage without subtracting the rate of depreciation for up to at least five years.

In this context, it is fair to mention that the cost of replacing or repairing the airbag is comparatively quite expensive. Therefore, it is best to choose the zero depreciation cover plan, which covers at least a part of the total expenses incurred.

How Do Insurance Companies Cover Airbag Replacement?

Are airbags covered under insurance? This is one of the most commonly asked questions. The good news is that car insurance companies cover these, but they are marked under specific categories. Therefore, there are some complications with the coverage too that you will have to be mindful of.

A zero depreciation coverage covers the entire vehicle but only comes in handy under any accidental circumstances involving your vehicle. Depending on the nature and type of the accident that occurred, the insurance companies cover airbag replacement costs in several ways:

● When the fault is yours:

In case of any accident, when you are at fault, your insurance company is liable to cover airbag repair and replacement, provided you possess collision coverage in your car insurance.

● When the fault lies on the other driver:

When the fault lies on the part of the opponent driver, his liability insurance coverage covers the accidental expenses, including the airbag replacement costs.

Types of Motor Vehicle Insurance Plans Available in India

If you are applying for car insurance in India, know that there are two types that you can apply for. These include the following:

Third party:

The third party car insurance is meant to offer financial coverage for any of the third party vehicles during an accident. It can be for injury to the person or property. In India, it is mandatory to own third party car insurance. This is the minimum legal requirement. Comparatively, you will have to pay lesser premiums as compared to comprehensive insurance policies.

Comprehensive:

A comprehensive insurance policy is meant to offer more protection than a third-party insurance policy. It is more than liability coverage. You may use this policy for reimbursement of damage to the vehicles due to accidents. This type of insurance covers collision, medical and comprehensive coverage. In specific cases, it also offers protection from theft and fire. However, you'll have to pay more premium than the generic third party insurance policy.

Understanding The Benefits of Add-on Covers

Add-on covers can prove to be extremely beneficial as you get extra coverage for your third party car insurance. If there is any wear and tear damage to your vehicle, you will be compensated for it properly if you have add-on covers.

You must note that there are different types of add-on covers like zero depreciation add-ons, consumables add-ons, roadside assistance add-ons, engine protection add-ons and more. Depending on the type of add-on you opt for, you will get the benefit accordingly.

How Does Depreciation Affect Your Claim?

Airbags will be covered under comprehensive insurance, but you'll have to be mindful of the depreciation rates. When you raise a claim, the amount which will be paid will be less than the vehicle's market value. This is mostly because the amount is calculated by deducting the depreciation. So, if the car is old, the price of deduction will be higher too as per the price.

The percentage of depreciation according to its age is as follows:

Age of the Vehicle	Percentage of Depreciation Applied
Up to 6 months	5%
6 months to less than a year	15%
1 year to 2 years	20%
2 years to 3 years	30%
3 years to 4 years	40%
4 years to 5 years	50%

The percentage of depreciation accordingly to its components are as follows:

Component	Percentage of Depreciation Applied
Paintwork	50%
Components made of nylon/rubber/plastics	50%
Components made of fibreglass	30%
Components made of glass	NIL

Zero Depreciation Cover

The zero depreciation cover is also referred to as bumper-to-bumper cover or nil depreciation cover. If you are opting for this cover or filing a claim, you will be compensated for the complete damage without any deductions. However, this benefit will be provided only to cars with less than 5 years of age.

You must get the zero depreciation cover for the following:

• If you own an expensive car.

• If you have just started driving.

• You actually have to drive through the accident prone areas.

• If your car costs expensive repairs.

Conclusion

The Road Transport and Highways Ministry have expedited a new policy for the installation that has been mandated in all passenger vehicles of a minimum of six airbags each. Therefore, the need to know the future consequences and implications has all the more arisen.

Depending on the general terms and conditions of the car insurance , all standard insurance companies cover the costs of airbag repair and replacement under normal circumstances, provided you have chosen zero depreciation car insurance . Moreover, occupant restraint systems even include an air cushion restraint system, thus enhancing the scope.

A deployed and burst airbag significantly reduces the safety issue of the vehicle. Moreover, repairing or replacing the airbag is comparatively far cheaper than replacing the entire vehicle, provided your vehicle does not need to undergo too much work.

From the above discussion, it is evident that you can rest assured of airbag replacement costs getting covered by insurance policies when proper terms and conditions are followed.

FAQs

1. How long will the zero depreciation policy last?

The zero depreciation policy must be available for a vehicle up to 5 years. There are only a few insurers who will offer coverage for cars older than 5 years.

2. Will airbags be covered in car insurance policies in India?

Yes, airbags will be covered in the comprehensive insurance policies in India. However, it may not be fully covered because of the involvement of depreciation rates.

3. What will be the cost of airbag replacement in India?

The cost of airbag replacement in India is usually between Rs 1000 to Rs 4000. This completely depends on your model of vehicle, airbag unit prices and installation charges.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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