Knowledge Centre

Understanding the Add-On’s

Published on October 16, 2019. EST READ TIME:3 MIN

Cars and Two wheelers are one of our prized possessions and we take pride in owning them and using them for travel be it for work purpose or going on that long cherished dream holidays, it is therefore equally important that we get them the complete security they deserve with two wheeler insurance or car insurance.

It is mandatory under Motor Vehicles Act 1988 and Motor Vehicles (Amendment) Act 2019 for every motorist to carry a valid motor insurance at all times. Hefty fines have been enacted under the law for drivers breaking the rules.

Also as per the order passed by Supreme Court of India, effective from September 1, 2018, all the vehicles (two wheelers or car) needs to have compulsory third party insurance cover for a period of 5 years and 3 years respectively. You can also buy a comprehensive insurance plan having a third party cover and also an Own Damage cover.

Insurance Regulatory and Development Authority of India (IRDAI) also has issued a circular according to which from September 1, 2019, motor insurance companies would be able to offer standalone annual Own Damage cover, if opted by policyholder for cars and two wheelers.

  • A third party liability offers coverage against bodily injury to the third party or damage to the third party property, however it provides no coverage against damage to your own vehicle.

  • A Comprehensive Insurance plan provides coverage for third party liability and also own damage cover for liabilities arising from natural calamities like floods, earthquake and other man made situations like theft, vandalism etc.

  • Another type of insurance plan which you can use to safeguard your vehicle is stand alone own damage plan.This plan will provide protection to your vehicle against theft, fire, flood, earthquake etc and is similar to the own damage cover available under comprehensive insurance policy.

However even after you take third party liability cover or a comprehensive insurance plan; you still can’t be fully assured that your vehicle is covered against all risks. In order to ensure that your vehicle is insured against all risks, you need to take Add-On’s in addition to your third party or comprehensive insurance plan. Although buying a motor insurance with an Add-On would cost you higher than just buying a third party or comprehensive insurance plan, the benefits of having an Add-On far outweigh the costs.

Let’s look at some of the Add-On Covers.

  • Zero Depreciation Coverage: This Add-on is highly recommended as it allows you to receive full compensation of your vehicle at the time of claim. You might be under the impression that as you have a comprehensive motor insurance you would receive the full amount for your vehicle, however you have to share the burden of costs related to depreciation of parts of vehicle and deductibles. By buying Zero Depreciation Add-On cover,  the insurer would bear the expenses related to depreciation.

  • Engine Protect Cover: Many of us are unaware that comprehensive motor insurance plan does not offer coverage for costs related to damage of the engine. You can strengthen your motor insurance coverage by buying this Add-On. Engine Protect Cover is more useful for people residing in areas that are prone to floods and water logging. This Add-On is also suitable for high end cars for which repair work for any damage to the engine can prove to be very costly.

  • Roadside Assistance Cover: Imagine a scenario where your vehicle has broken down on the highway and there is no help in sight. You could avoid such a scenario if you buy Roadside Assistance Add-On cover, here motor insurance company would be able to provide services like towing, arranging a mechanic, tyre change etc. round the clock. It is highly recommended that you take this Add-On as it provides much needed assistance in case of an emergency.

  • Consumables Cover: Repairing a damaged vehicles involves lot of usage of consumables like brake fluid, nuts and bolts, engine oil and coolants which can push up the cost of repair in a big way, however if you take this Add-On cover, you would be able to avoid the costs as the insurer would reimburse you the costs.

  • No Claim Bonus Protect Cover: A policyholder is entitled to a claim bonus if he/she has not made any claim in regards to the vehicle for the entire year. This bonus could be used to get a discount on the renewal premium for subsequent year. NCB protection cover allows you to safeguard your no claim bonus even in the event of you making a claimfor the damages which is not in your control, however this Add-On is not available for vehicles older than 3 years.

  • Pillion Rider Cover: On buying this add-on, you will be able to seek compensation for medical expenses incurred during the treatment of an injured pillion rider in case of a two wheeler and in case of a car; you can opt for Passenger Cover Add-On.

Buying an Add-On cover along with motor insurance is like having an additional safety net to protect your vehicle from unpleasant eventualities, however you need to thoroughly assess the pro’s and con’s of each Add-On and purchase the one that suits your requirements the most.


HDFC ERGO is a brand trusted by 1 crore + customers. The company offers insurance products across categories which include motor, travel, health and home in the retail category and insurance products in property, marine and liability insurance on the corporate side.

  • Overnight Car repair Services in 16 cities

  • Transparency and seamless claim process

  • Dedicated In house claim settlement and customer support working 24*7

  • Online Buying and Renewal.. Go paperless

  • 6,000+ network garages across country

Seamless and Easy Claims! Assured

  • Registration and Tracking of claims through the website

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  • Facility of preferred mode of claim settlement

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

Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle

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