Consumables Cover – Everything You Need to Know

Understanding what is meant by consumables is essential to the process of buying this add-on. Consumables in motor insurance basically refer to the products or substances that are completely used up or become unsuitable for continuous or permanent use when they are applied to their intended purpose during repairs. For example, the engine oil in your car is for one-time use. If it gets burnt, it needs to be completely replaced during repairs. Other examples include grease, washers, nuts, bolts, screws and such.

The cost of replacing these consumable items is not covered under the standard comprehensive insurance policy, meaning the policyholder has to pay for it out of pocket. Individually, they are low-cost products, but together they can add up to a major expense on the repair bill. This is where the consumables cover comes into action. It is an add-on cover that pays for the expenses related to replacing consumables at the time of a valid own-damage claim.

Here’s how the consumables coverage in India works with an example:

Suppose, after a car accident, Mrs Verma gets a repair bill of ₹20,000. Among this, ₹3,000 is spent on replacing consumables. Without this add-on, she has to pay ₹3,000 for consumables on top of applicable deductibles and depreciation, while the car insurance covers the rest. However, with the car insurance consumables cover, she only has to pay for applicable deductibles and depreciation, while the insurer covers the remaining bill, including the cost of consumables.

The consumables cover add-on in car insurance settles the costs incurred in replacing a wide range of consumable items at the time of a valid own-damage claim. The consumables included under this add-on are:

1. Filters and Fluids:

Battery water, AC refrigerant gas, fuel filter, oil filter, air filter, radiator coolant, etc.

2. Oils and lubricants:

Sealants, grease, engine oil, brake oil, power steering oil, etc.

3. Small hardware parts:

Nuts, screws, washers, gaskets, clips, etc.

The consumables cover add-on doesn’t apply in certain cases, such as:

1. Illegal driving:

It doesn’t offer coverage in case damages are caused by an individual driving the car under the influence of alcohol and/or drugs or without a valid driving licence.

2. Wear and tear:

The add-on does not offer coverage for consumables replaced at the time of routine maintenance.

3. Delayed claim filing:

The add-on will not provide coverage if the claim is not reported to the insurer within the stipulated time following the accident.

4. Electrical/mechanical breakdown:

It doesn’t cover damages arising from electrical or mechanical failure/breakdown of the car.

5. Unnecessary replacement:

The add-on doesn’t provide coverage for consumables that are unnecessarily replaced.

Several benefits come with the inclusion of the consumables cover add-on to your car insurance policy. Here are some of the key benefits of the consumables cover add-on:

1. Improved coverage:

Opting for the car insurance consumables cover improves the coverage range of your car insurance plan. It offers an extra layer of protection by shielding you against the cost of consumables, which goes beyond the coverage scope of the standard comprehensive car insurance policy.

2. Better financial safety:

The add-on handles the cost of consumables, which reduces your out-of-pocket expenses and minimises your financial vulnerability at the time of your own damage claims. Its coverage benefits clearly outweigh the minimal cost spent on this add-on.

3. Peace of mind:

With this add-on, you can drive worry-free, knowing that your car insurance will take care of the unexpected repair costs, including costs incurred on consumables, following an accident.

The following pointers highlight some of the key facts about the consumables covered in car insurance that you should know about:

Whether the consumables are covered in car insurance is worth spending extra depends completely on your vehicle type, risk tolerance and coverage expectations. Here are examples of individuals for whom this add-on is particularly beneficial:

1. Individuals seeking complete coverage:

Individuals who have a lower risk tolerance and seek complete coverage against unexpected out-of-pocket expenses will gain a lot of benefit from the consumables insurance policy add-on. In exchange for a slightly higher upfront cost, they can ensure that almost the entirety of the repair bill during accidental claims, including the cost of consumables, is handled by the insurer.

2. Frequent drivers:

Driving frequently or in heavy traffic areas increases the probability of minor accidents. With this comes an increased frequency of claims, where even minor costs of consumables can stack up, causing a major financial burden. In such cases, having the backing of the consumables cover can really come in handy.

3. New or luxury car owners:

The cost of consumables for new and luxury cars can be significantly more expensive than for standard cars. This is especially the case when replenishing with OEM-recommended components to ensure compatibility and preserve the vehicle’s warranty. For such car owners, investing in a car insurance consumables add-on cover is highly recommended as it doesn’t let these minor costs of consumables become a major financial risk.

Filing a consumables cover claim under car insurance is a very simple task. Here are the steps you need to follow:

1. Inform your insurer about the claim within the stipulated time.

2. Provide all the details and documents for the claim.

3. For cashless claims, you can visit a nearby network garage and get the damage inspected by a surveyor. Upon approval, the necessary repairs will be made, and the authorised insurer will pay the repair bill, which includes the cost of consumables, straight with the garage.

4. For reimbursing claims, you can get your car repaired at a garage of your choice and pay the repair bill out-of-pocket. Then, you need to submit the original repair bill, which includes the cost of consumables, and invoices with the form to your insurer, and they will reimburse you.