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Know The Policy: Consumable Cover Add-on in Car Insurance

Team AckoDec 24, 2023

A Comprehensive Car Insurance plan is known to score over the basic Third-party Plan because of three reasons – it includes the law-stated cover, it offers the Own Damage cover, and it allows you the opportunity to purchase Add-ons. Add-ons such as a Consumable Cover can come in handy to derive more out of your car insurance policy.

Add-ons are not compulsory – you have the option to buy or skip them. Therefore, you should only go for them if they are suitable for you and add value to your policy. Are you wondering if a Consumables Add-on will add value? Read ahead to know all the details about this additional coverage.

Contents

What is a Consumable Cover in Car Insurance?

Before you understand what is a Consumable Cover in car insurance, here are a few lines explaining what are vehicle consumables.

Consumables are commodities that have a specific and limited use. Once you use such a product, you may not be able to re-use them in the future. For example, once you use nuts and bolts in your car, they cannot be reused. They would have to be replaced now and then. Similarly, the engine oil of your car, once used, gets burnt out.

Your Comprehensive car insurance usually does not compensate or pay you for any of the car’s consumables. At the time of claims, you are supposed to pay out of your pocket for the replacement of these consumables. To avoid this, you can opt for a Consumables Cover as it covers such expenses. Since this is an additional cover, your overall premium amount increases. However, the exact payable premium differs from one car model to another.

Here’s a list of the consumables that are usually covered by most of the insurers under their Consumables Cover Add-on.

Engine oil
Oil filter
Lubricants
Break oil
Gearbox oil
Nut and bold
Screw
Distilled water
Grease
Bearing
Washers
Clip
Air conditioner gas
Other similar items

Here’s an Example:

Imagine, you are on your way to the office. Unfortunately, your car meets with an accident. Your car now needs repairs worth Rs. 14,000. Of this, the ‘Own Damage’ component of the Comprehensive policy takes care of the repairs worth Rs. 12,000. Here, you need to pay the remaining Rs. 2000. This is the cost of repairing/refilling consumables like engine oil, nuts and bolts. But, with a Consumable Cover Add-on, you do not have to pay even Rs. 2,000 for the consumables from your pocket.

Your insurer would pay for the entire bill of Rs. 14,000 (Note that cost associated with Deductibles and Depreciation on car parts have not been considered in this example for the sake of simplicity). A Consumable Cover, thus, enhances your Comprehensive policy’s coverage.

Also, read: Credit Score and Car Insurance

How to Buy A Consumable Cover Add-on in Car Insurance:

You have the option to purchase this cover via the online mode or the offline mode while buying or renewing your car insurance policy. You can buy a Consumable Cover by following the below-mentioned steps.

Step 1 – Visit the insurer’s website from whom you would like to buy the cover. For example – www.acko.com.
Step 2 – Share basic car-related information.
Step 3 – Select the Comprehensive Plan
Step 4 – Select the Consumable Cover from the available Add-ons
Step 5 – Make the payment and receive the policy.

Before you opt for a Consumables Cover, check these terms and conditions

You can claim under this Add-on only if it is accepted under the ‘Own Damage’ section of your Comprehensive car insurance This means, it does not cover the cost of consumables in car insurance of a third-party vehicle.
For your claim to be valid, your car consumables must be repaired within three days from the date of the accident. There is a time limit in which you need to get your vehicle repaired from the garage. So, make sure you inform the insurance company as soon as the accident takes place.
Such an Add-on is usually valid for cars not older than 5 years.

How to Claim Car Insurance for Consumable Cover?

Consumables in a car insurance claim do not contribute much to the bill as compared to part replacement, but it is never disadvantageous to save money with the help of a Car Insurance Add-on cover. The basis for raising a claim against this cover remains the same – you need to inform the insurance company as soon as possible and get on with the claim process, which can either be a Cashless one or a Reimbursement one.

1) Cashless Claims:

Most of the top insurance companies have tie-ups with garages – such garages are referred to as Network Garages. In case you raise a Consumable Cover Claim where your car is taken to a network garage, then the insurance company and the garage will settle the bill amongst themselves. You will just have to pay the deductible amount.

To raise such a claim, you will have to contact your insurer, share basic information for verification and they will send their executive to the garage and take things forward. Make sure to not get the repair work started before the insurance executive gets to examine the damage and consult with the garage mechanic regarding the repairs.

2) Reimbursement Claim:

In this type of a claim process, you can get the car repaired from any garage – not necessarily a network garage. Once your car is repaired and the garage bill is printed, you need to send it to the insurance company, along with documents like the policy copy, to reimburse the claim amount. Here also, you need to inform the insurance company before the car is being repaired. Otherwise, the insurance company will not know the extent of the occurred damage – they need to inspect it themselves as part of the claim process.

In this process, you will have to pay the money up-front to the garage and then coordinate with the insurance company to get the reimbursement amount. Therefore, this can be viewed as a reactive claim settlement process. On the other hand, a Cashless process is a proactive process where you do not have to make much of an effort to get things sorted as the insurance company and the garage manage things on their own – you can relax and wait for the repaired car to be delivered at your doorstep.

Also, read: What is No Claim Bonus (NCB) in Car Insurance?

The Top Benefit of a Consumable Cover Add-on in Car Insurance:

The top benefit of a motor vehicle Consumable Cover Add-on is that you do not have to pay for the consumables used while repairing the damaged car – the insurance company handles that as well along with the repair bill. By paying a marginal amount to purchase the Add-on, you get the benefit of not worrying about paying for the consumables.

Private Car Package Policy Add-Ons Consumables:

You can purchase the Consumables Cover Add-on for your private car by including the Add-on in your Comprehensive Car Insurance plan.

Special Conditions:

The cover will consider only those consumables mentioned in the policy document.

Documents Required:

There are no specific documents needed to purchase this Add-on online unless specified otherwise. For claim settlement, you will need an active Comprehensive car insurance policy showing the Add-on as inclusion, and the repair bill for reimbursement claim.

Private Car Package Policy – Consumables – 3 Years:

The Add-on can be purchased as a part of the 3-year package policy as well.

Special Conditions:

Consumables will be considered as per the policy’s terms and conditions.

Documents Required:

No documents are required for online purchase. For claim settlement, submit an active Comprehensive plan featuring the Add-on cover.

Private Car Policy – Add-ons – Consumables Bundled:

Insurers might offer the Consumables Cover Add-on bundled with a Comprehensive plan.

Special Conditions:

The insurance company will only consider those consumables that are included in the Policy Wordings.

Documents Required:

Usually, no documents are required to buy this plan online. For claims, you will need an active Comprehensive plan with the Add-on cover.

Commercial Vehicle Package Policy – Add-ons-Consumables:

Commercial vehicles such as cabs, tourist vehicles and other such passenger-carrying vehicles need to be insured with a Commercial Vehicle car insurance policy. The Consumables Cover Add-on can be purchased with a Comprehensive car insurance plan for a commercial vehicle as well.

Special Conditions:

For claim settlement, only those consumables that are mentioned in the Policy Wordings shall be considered.

Documents Required:

As demanded by the insurance provider while buying or settling claims.

Who Should Opt for a Consumable Cover?

You must opt for a Consumable Add-on Cover if:

If you do not want to pay for costs of consumables like the cost of engine oil replacement in the repair bill.
If you want to stay worry-free about claim settlement of minor repairs and replacements.

Frequently Asked Questions:

Here’s a list of common questions regarding a Consumables Cover Add-on. Note that these are generic questions. If you have anything specific that is bothering you about the Consumables Add-on Cover or something that you might want to know in detail about, please feel free to shoot an email at [email protected] for assistance.

I have a Comprehensive plan but it is expiring soon, and I am planning to buy a Third-party Liability plan while renewing the policy. Can I buy this Add-on with a Third-party Liability policy for my car?

No, this cover can only be purchased with a Comprehensive plan.

Does this Add-on cover the expenses made for fuel while repairing the car?

No, this Add-on does not cover fuel expenses.

Where can I find the consumables that are covered by the policy?

You will have to go through the Policy Wordings of the plan offered by the insurer. For example, you can check out Acko’s Policy Wordings for Consumables Cover on acko.com.

Can I buy this Add-on via the online purchase flow?

Yes, this Add-on can be purchased online as well as offline depending upon the availability.

I have a one-year-old car. Is this Add-on beneficial for me?

Yes, this Add-on can be beneficial for those who own cars that are less than five years old.

Is the cost to replace nuts and bolts covered under a Consumables Cover Add-on?

Yes, the cost incurred to replace or repair the insured vehicle’s nuts and bolts is included in a Consumables Cover Add-on’s inclusion.

How will this Add-on help to save money if I am paying additional money to purchase it?

Add-ons come at an additional cost but they offer benefits. In case of a Consumables Cover Add-on, you will spend a marginal amount to purchase the cover but in case your car needs repairs, then at that time, you will not have to pay for the cost incurred for the consumables used to repair the vehicles. This way, you can save money on the repair cost with the help of this Add-on. Purchasing this Add-on also makes the claim settlement process more convenient.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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