What is ZD EP CM PB KP in Car Insurance Add-on Coverage?

ZD EP CM PB KP in car insurance refers to Zero Depreciation Cover, Engine Protector Cover, Consumable Expenses, Passenger cover, and Key Protection cover.

Continue reading to understand these terms in detail.

Zero Depreciation Cover

Depreciation in cars refers to the gradual decline in the value of vehicle parts because of variables like wear and tear, age, and obsolescence. If your car is damaged in an accident, the standard car insurance plans only provide compensation for the replacement parts after deducting depreciation value. The policyholders are required to pay the difference between the new part’s market value and the depreciated portion of the vehicle.

Therefore, one can opt for zero depreciation add-on cover at the time of purchasing or renewing a motor insurance policy. It helps in maximizing the reimbursement amount during claim settlement and augments the value of your comprehensive car insurance policy. The cover is usually available for new vehicles, but vehicles up to the age of 10 years can opt for add-on cover by paying a higher premium.

Zero Depreciation cover also known as bumper-to-bumper insurance or nil depreciation is a type of car insurance policy that provides full coverage to your vehicle without deducting any depreciation value on its parts. The zero depreciation provides coverage for fiberglass plastic, rubber, and metal parts.

Therefore, in case of a theft or accident, if there is any damage caused to your vehicle, your insurance provider will pay the bills for replacing or repairing the vehicle’s body parts. However, the add-on does not provide coverage for tires, tubes, car batteries, and any damages to the car engine due to water ingress or oil leakage. Costs for changing oil, bi-fuel kits, and gas kits, along with other mechanical breakdowns are also not covered under zero depreciation cover.

Engine Protection Cover

Engine protection cover is an optional add-on service that can be added to a comprehensive car insurance policy. The engine requires full protection for the vehicle to operate smoothly. However, due to the high cost involved, its repair entails significant expenditures.

The EP cover protects the engine against any damage due to lubricant oil leakage, water ingression, or a hydraulic lock fault. The add-on cover protects engine elements such as oil pan, combustion chamber, piston, manifold, crankshaft, etc. The EP cover reimburses the bill for repairing or replacing the automobile engine or its components.

Car insurance companies in India do not provide engine protection as a policy element. Therefore, one has to purchase EP cover with comprehensive motor insurance. The engine protection cover is available at an extra premium, but it is certainly worth the expense. It

covers the substantial material and labor costs that may be difficult to afford in the event of an accident.

Please note that this engine protection cover is only available for vehicles not more than five years old.

Consumable Expenses Cover

The consumables in a car refer to items that have a particular and limited use. The consumable goods need to be replaced regularly due to wear and tear as they are impossible to reuse. For instance, consumables in a vehicle include nuts, bolts, screws, engine oil, lubricants, radiator coolant, washers, etc. that needs to be replaced from time to time.

A comprehensive car insurance policy often does not cover consumable expenses. Therefore, vehicle owners have to pay the replacement costs out of their pocket at the time of claims.

To avoid such costs, it is best to opt for Consumables Expenses Cover as an add-on to your comprehensive car insurance policy.

Passenger Cover

Passenger cover in car insurance refers to the financial coverage for people riding in the insured vehicle. In case of an accident, there is a possibility that apart from the driver, the passengers get injured or even lead to deaths.

The passenger cover protects the family and the loved ones of the vehicle owner. In the unfortunate event of an accident, if you and your loved ones are hurt, this coverage will provide the claim for everyone present in the vehicle. The passenger cover also provides required financial support until they physically recover.

Generally, a comprehensive car insurance policy does not cover passengers. Therefore, insurance companies provide passenger cover as an add-on to cover the passengers of the insured car.

Key Protection Cover

Losing your car keys can be a hassle, especially if you do not have a duplicate key. Also, making new car keys can be expensive for high-end cars. To avoid such a situation, it is best to purchase a key protection/replacement cover. It provides compensation if your car keys are lost, stolen, or damaged.

Key Protection Cover is an add-on service that can be opted for at an additional premium while buying or renewing your comprehensive car insurance policy. A key protection cover comes in handy in case you lose or misplace your original car keys. It also covers the repair cost of the lock set if it is damaged. With the key replacement cover, vehicle owners will be reimbursed for key replacement or repair costs.

To get key protection coverage, vehicle owners are required to pay a minimal premium amount annually.

Top Car Insurance Companies that cover ZD EP CM PB KP in India

HDFC Ergo Car Insurance

In 2015, after a joint venture HDFC and ERGO came into alliance. The company has over 6700 cashless garages and offers services like overnight vehicle repairs. With a 4.4 customer rating, HDFC Ergo has over 1.5 Crore happy customers. HDFC Ergo provides a 100% claim settlement ratio where 80% of claims are settled within one day.

United India Car Insurance

Incorporated in February 1938, United India Car Insurance has more than 1.38 crore customers. It provides a variety of insurance products and has a 95% claim settlement ratio. The company excels in achieving the goal of 100% customer satisfaction.

ICICI Lombard Car Insurance

Founded in 2001, ICICI Lombard General Insurance Company Ltd. offers a comprehensive and wide variety of insurance products. The company has a claim settlement ratio of 93.4% for motor insurance. With a 4.7 customer rating, ICICI Lombard has issued a car insurance policy for over 2.17 crore individuals.

New India Car Assurance

Founded in 1919, New India Car Assurance has a 92% claim settlement ratio. With a huge customer market, the company is providing world-class service both in India and abroad.

Royal Sundaram Car Insurance

Established in October 2000, Royal Sundaram Car Insurance is trusted by over 28 million Indians. The company has a 99% claim settlement ratio and provides complete protection for your vehicle.

Digit Car Insurance

Established in the year 2016, Digit Insurance is trusted by over 3 crore Indians and has a 96% claim settlement ratio.

Cholamandalam Car Insurance

Founded in 2001, Cholamandalam MS caters to different customer needs. With a 96% claim settlement ratio, the company is highly trusted by customers.

Future Generali Car Insurance

Future Generali has been in business since 2006 and has a 96% claim settlement ratio. With over 121 branches across India, the company serves its customers 24*7.

Reliance Car Insurance

Founded in August 2000, Reliance Car Insurance has managed to meet customer expectations with its effortless service. With a 96% claim settlement ratio, the company is popular among customers.

Liberty Car Insurance

Founded in 2013, Liberty Car Insurance has over 110 offices across. The company has issued 20 crore policies since 2013 and has a 98% claim settlement ratio.

Kotak Car Insurance

Established in April 2015, Kotak Car Insurance has over 1.1 crore customers. With 4000+ network garages, the company has a 98% claim settlement ratio.

Bajaj Allianz Car Insurance

Founded in 1926, Bajaj Allianz is a customer-centric organization. Bajaj Allianz customers can get 24*7 roadside assistance. With a 99% claim settlement ratio, the company makes sure to provide what its customers need.

Zuno Car Insurance

Established in 2016, Zuno is a trusted insurance provider in India. With a huge customer base, the company has a 98% claim settlement ratio

Universal Sompo Car Insurance

In 2008, Universal Sompo General Insurance started its business in India. The company’s PAN India presence provides customers with 24*7 assistance, a quick claim process, and the best insurance deals. Universal Sompo has a 96% claim settlement ratio.

IFFCO Tokio Car Insurance

IFFCO Tokio Car Insurance was founded in the year, 2000, as a joint venture between IFFCO Tokio and Tokio Marine Asia. With a customer rating of 4.8, the company has a 96% claim settlement ratio.