In the event of replacement of parts, the insurer pays only the depreciated value, which means you might have to bear a portion of the claim amount. Illustratively, insurers consider the value of plastic part to depreciate at 50 per cent, with the first draw down in value occurring at the time of the sale of vehicle. So, even if you get a plastic bumper replaced on the same day as you brought the car and make a claim, your insurer will reimburse you only 50 per cent of the cost of a new bumper: you'll have to pay the balance. The depreciation rates vary from item to item and, in some cases, also with the age of the item (See table: Depreciation Rates on Spare Parts).

An additional premium is charged to insure items not originally part of the vehicle such as CNG/LPG kits, electronic items (stereos and televisions sets) and electrical fittings (extra lights and horns).

Vehicles manufactured in other countries have to be valued by an automobile engineer at the time of getting them insured. There's a 30 per cent mark-up on premiums payable on vehicles owned by embassies. Also, in case of damage to the windscreen of such vehicles, the compensation is limited to 3 per cent of the value of the vehicle or Rs 30,000, whichever is lower.

You can make a claim even if the accident happened while driving on the wrong side of the road or while committing a traffic violation without any criminal intent.

EXCLUSIONS

1. The policy doesn't cover for loss or damage if the driver of the vehicle was drunk at the time of the accident (which has to be established through a breath analyzer test or a stomach wash test-or driving without a valid licence).
2. Damage to tyres (unless the vehicle is also damaged), wear and tear, routine maintenance and mechanical breakdown.