HDFC Ergo Private Car Policy

HDFC Ergo Private Car Policy

What Does it Cover?

Section I: Own Damage Or Loss

The insurance company will protect you, the insured, against any loss or damage to the insured vehicle and its accessories under the following circumstances –

  1. Fire, explosion, self-ignition, or lightning.
  2. Burglary, housebreaking, or theft.
  3. Damage caused by riots and strikes.
  4. Damage from an earthquake (including fire and shock damage).
  5. Damage from floods, typhoons, hurricanes, storms, tempests, inundation, cyclones, hailstorms, or frost.
  6. Damage caused by accidental external means.
  7. Damage caused by malicious acts.
  8. Damage resulting from terrorist activities.
  9. Damage occurring while the vehicle is in transit by road, rail, inland waterway, lift, elevator, air, etc.
  10.  Damage from landslides or rockslides.

The coverage is subject to depreciation based on the rates mentioned below for replaced parts –

  1. Nylon parts, rubber parts, plastic parts, tyres, tubes, airbags, batteries - 50%
  2. Fibreglass components - 30%
  3. Glass parts - No depreciation
  4. Other parts, including wooden parts, will follow the depreciation rates as per the following table –

Age of the Vehicle

% Of Depreciation

Lower than six months


Higher than six months but lower than one year


Higher than one year but lower than two years


Higher than two years but lower than three years


Higher than three years but lower than four years


Higher than four years but lower than five years


Higher than five years but lower than ten years


Higher than ten years


  1. For painting, HDFC Ergo applies a 50% depreciation rate only to the material cost of the total painting charges. If you receive a single bill covering all painting charges, they will consider the material component as 25% of the total painting charges to calculate the depreciation.


Section II: Liability to Third Parties

The insurance company will provide compensation for –

  • Death or physical injury to any person.
  • Damages caused to property that does not belong to you or is not under your care or control.

Section III: Personal Accident Cover for Owner Driver

In car insurance, a Personal Accident (PA) Cover gives you protection against the risk of physical disability or demise due to an accident. This coverage comes with vehicle insurance and offers financial compensation.

The insurance company will provide compensation in case of death or bodily injury sustained by the owner-driver, as per the following scale –

Nature of injury

Scale of Compensation



  • The loss of 1 limb + sight of 1 eye, or
  • The loss of 2 limbs, or
  • The loss of sight of 2 eyes


The loss of sight in 1 limb or 1 eye


Any permanent total disablement due to injuries (except the ones mentioned above)



Note: Certain terms and conditions may apply.


What Will It Not Cover?

The insurance company will not be responsible for covering expenses in case of any of these circumstances –

  1. Any consequential loss, decrease in value/depreciation, regular wear and tear, mechanical or electrical failures, or breakages.
  2. Damage to tyres and tubes, except when the insured vehicle is also damaged at the same time. In such cases, the insurance company's liability will be limited to 50% of the replacement cost.
  3. Loss of or damage to vehicle accessories due to housebreaking, theft or burglary, unless the vehicle is stolen at the same time.
  4. Any accidental loss or damage that occurs while you or any person driving the vehicle with your permission is under the influence of alcohol or drugs.


Insured Declared Value (IDV)

IDV is an estimate of the market value of your car. It is the highest amount you can get from your insurance policy if you make a claim. Every year, the IDV changes because your car’s value depreciates over time.

Here is the depreciation schedule that is used to determine the IDV of a vehicle –

Age of the vehicle

% of the Depreciation for Fixing IDV

Lower than six months


Higher than six months but lower than one year


Higher than one year but lower than two years


Higher than two years but lower than three years


Higher than three years but lower than four years


Higher than four years but lower than five years




General Exceptions

The insurer won’t be liable for –

  1. Any accidental loss, damage, and/or liability that occurs outside the covered geographical area.
  2. Any claims arising from contractual liabilities.
  3. Any accidental loss, damage, and/or liability that occurs while the insured vehicle is being used in a manner that does not comply with the 'Limitations as to Use' or the vehicle is being driven by someone other than the driver mentioned in the driver's clause.
  4. Any accidental loss/damage to any property, any resulting loss or expense, or any consequential loss.
  5. Any liability caused directly or indirectly by ionising radiations, contamination by radioactivity from nuclear fuel, nuclear waste, etc.
  6. Any accidents, harm, loss or liability linked to nuclear weapons material, whether directly or indirectly caused.
  7. Any accidental loss, damage, and/or liability directly or indirectly caused by war, invasion, acts of foreign enemies, hostilities, civil war, mutiny, etc. In case of any claim, you must prove that the accidental loss, damage, and/or liability happened independently and had no connection or relation to any of the mentioned events or their consequences. If you fail to provide such proof, the insurance company will not be liable to make any payment for that claim.



Here are some of the add-ons that can be included with the base policy –

  • Loss of Use - Down Time Protection

If the insured vehicle gets damaged due to any covered event, the insurance company will compensate you for the cost of using alternate private transport, up to Rs. 5000 per day. You can use this coverage up to three times for any partial loss and once for a total loss or theft claim during each policy year.
However, there are certain limitations to this coverage. There is a time deductible of 24 hours and it will be applicable for -

  1. A specific number of days from the date the insured vehicle is reported for repair until it is either repaired or replaced.
  2. A specific number of days until the insurance company offers the settlement amount.
  3. 5 days for partial loss or up to 15 days for total loss, whichever comes earlier.

To avail of this add-on, you will need to pay an additional premium.

  • Multi-Vehicle Discount

If you own more than one vehicle and add them all to your insurance policy (provided they are all registered under your name), you will be eligible for a discount starting from the second vehicle onwards. The discount can go up to 20% over the base own damage rates.

Here are the applicable discounts based on the number of vehicles –

No. of Vehicles

Discount Applicable









The insurer can withdraw the discounts if you are found to provide any false or deceptive information.

  • Voluntary Deductible

The voluntary deductible is an amount that you choose to pay before making an insurance claim. The higher the voluntary deductible, the lower the insurance premium, and the higher the discount.

Here is a table that shows the discount for the corresponding voluntary deductible –

Voluntary Deductible

Discount Applicable

Rs. 2,500

20% on the OD premium of the vehicle

Rs. 5,000

25% on the OD premium of the vehicle

Rs. 7,500

30% on the OD premium of the vehicle

Rs. 15,000

35% on the OD premium of the vehicle

Rs. 20,000

40% on the OD premium of the vehicle

Rs. 25,000

45% on the OD premium of the vehicle

The voluntary deductible will be in addition to the compulsory deductible specified in the main motor insurance policy.

  • Emergency Assistance Cover

If the insured vehicle suffers loss or damage due to any reasons specified in the policy, the following services will be provided by the insurance company, upon payment of an additional premium -

  1. Minor repairs at the accident spot
  2. Flat tyre repair
  3. Towing assistance for accidents and breakdowns
  4. Vehicle key service
  5. Arrangement of alternate travel
  6. Emergency fuel delivery
  7. Ambulance referral
  8. Medical evacuation
  9. Accommodation arrangement
  10. Battery jump start service
  11. Vehicle repatriation service
  12. Continuation or return journey assistance
  13. Legal services assistance
  14. Translator service
  • No Claim Bonus Protection

You can keep your No Claim Bonus even if there are some specific losses or damages to the insured vehicle, including –

  • Loss or accidental damage to the windshield glass caused by an external object.
  • Loss or damage to a parked vehicle due to accidental external means.
  • Loss or damage to a parked vehicle due to flood, earthquake, or Act of God Perils (natural calamities beyond human control like storms, landslides, etc.

Please note that this clause applies only to partial losses covered. You can avail of this benefit for up to three occurrences during the policy period. And, to enjoy this No Claim Bonus Protection, you need to pay an additional premium.

  • EMI Protector

By paying an extra premium, the insurance company will cover your Equated Monthly Instalment Amount (EMI) as mentioned in the policy schedule. This is applicable if the insured vehicle is kept in the garage for accidental repairs for more than a certain number of days specified in the policy -

  1. For one Equated Monthly Instalment Amount (EMI), the waiting period is 30 days.
  2. For two Equated Monthly Instalment Amounts (EMI), the waiting period is 60 days.
  3. For three Equated Monthly Instalment Amounts (EMI), the waiting period is 90 days.

This is subject to several special conditions -

  1. The policy schedule includes the hypothecation/lease clause endorsement.
  2. The benefit will be limited to the EMI amount mentioned in the original loan/lease agreement.
  3. The accidental damages to the insured vehicle should be covered under Section I (own damage partial loss).
  4. This benefit is available only once during each policy year.
  5. The benefit amount will be payable in your name, subject to a NOC (No Objection Certificate) from the financier as specified in the policy schedule.
  6. The waiting period of 30 days for the benefit will start from the day you give permission to start repairs and the availability of all spare parts is confirmed by the surveyor and repairer.

A few exclusions apply to the coverage as well -

  1. If spare parts are unavailable, then such days will not be calculated towards the benefit.
  2. This add-on cover will not apply to total loss (TL), theft, and constructive total loss (CTL) cases.
  • Return to Invoice

By paying an extra premium, if the insured vehicle meets with a Total Loss (TL) or Constructive Total Loss (CTL), the insurer will compensate you for the difference between the 'claim amount receivable' under the motor package policy and the original value of the vehicle, as per the first sale invoice. This includes the first-time registration charges and road tax that were incurred on the insured vehicle.

However, this cover will not apply if the vehicle is recovered within 90 days of theft. And, if the police authorities do not issue the final investigation report for the theft claim, this cover will not be applicable.

  • Cost of Consumable Items

If your insured vehicle and its accessories (if insured) get damaged due to any of the covered reasons in Section 1 of the Policy, the insurance company will pay for the costs of items that are used during the repair process. However, you need to pay an extra amount to the insurance company for this coverage.

Consumable items are things that have specific uses and are either completely used up or become unfit for permanent use including nuts, bolts, screws, washers, grease, coolants, lubricants, engine and other oils, clips, air conditioning gas, bearings, battery water, filters, sealants, gaskets, tires, etc.

The insurer will cover the cost of consumable items under Section 1 of the policy only if the claim is valid and accepted.

  • Engine and Gearbox Protector

If you pay an extra amount, the insurance company will provide extra coverage for damage caused to the important inside parts of your vehicle's engine and/or gearbox due to water entering the engine or gearbox, leakage of lubrication oil, or damage to engine and/or gearbox of your vehicle due to accidental oil leakage.

This coverage includes compensation from the insurer for the following situations –

  1. Repairing or replacing important inside parts of the engine, like pistons, piston rings, piston pins, connecting rods, crankshaft, valves, valve seat/guides, nuts, bolts for the engine, engine oil, gasket, sealant, cylinder head, etc.
  2. Labour cost you incurred to repair the damaged engine and/or gearbox.
  3. The cost of engine cylinder re-boring, compression tests and other machinery.

You will be eligible for this coverage if you have proof showing that your vehicle was in a water-logged area and this caused damage to the inside parts of the engine and/or gearbox, or the undercarriage issue caused oil to leak and lead to damage inside the engine and/or gearbox.

The insurance company won't be responsible for paying in these situations –

  • If the loss is already taken care of by the manufacturer's warranty, recall campaign, or some other package you have at the same time.
  • Any extra loss beyond the damage to the important inside parts of the engine and/or gearbox from water logging, oil leakage, or engine/gearbox due to accidental oil leakage.
  • Damage to the engine and/or gearbox, including corrosion due to delay in notifying the insurance company or delay in getting your vehicle out of the watery area.

Just make sure…

If your vehicle stops in a watery area or its underside is damaged, do not try to start the engine by cranking or pushing. Use the toll-free number to get a survey done on the spot. Don't move the vehicle until the survey is finished.

  • Higher Protection and Removal Costs

If your vehicle gets damaged and cannot be moved because of a reason covered in this policy, the insurance company will pay for reasonable costs to protect and move your vehicle - provided you pay an extra premium. This is in addition to the limits set by the India Motor Tariff.

The coverage is valid for one accident and it includes taking your vehicle to the nearest repair shop and then bringing it back to you. For private cars, the insurer will cover costs up to Rs. 15,000.

  • Zero Depreciation Benefit

In case your vehicle gets partially damaged, the reduction in value that usually applies (as mentioned in section 1 of this policy) will not be taken into account - if you pay an additional premium at the time of policy purchase. This benefit doesn't cover tyres and batteries.