Key Replacement Cover in Motor Insurance: Benefits, Cost, Coverage & Claims
Modern car keys are no longer simple metal keys — they are equipped with RFID chips, transponders, remote locking, and smart access systems. Losing or damaging such keys can cost anywhere between ₹5,000 and ₹30,000 or more depending on the car model.
Standard motor insurance does not cover the cost of replacing lost or damaged car keys. To avoid such expenses, insurers offer a useful add-on called Key Replacement Cover.
What Is Key Replacement Cover?
Key Replacement Cover is an add-on rider available with comprehensive or standalone own-damage insurance. It reimburses the cost of:
- replacing lost or stolen keys
- repairing damaged keys
- replacing locksets (if required)
- labour charges for locksmith services
When Can You Claim Key Replacement Cover?
- key misplaced or lost
- vehicle key stolen
- accidental key breakage
- attempted theft causing lock damage
Coverage Under Key Replacement Cover
- Key replacement charges
- Lock replacement if needed
- Smart key programming
- Locksmith labour charges
- Towing (if vehicle immobilized)
Exclusions: What Is NOT Covered?
- negligence (leaving keys unattended)
- duplicate/spare keys replacement
- unauthorized locksmith charges
- keys damaged due to wear and tear
- theft without FIR report
Cost of Key Replacement Cover
| Vehicle Type | Approx Premium / Year |
|---|---|
| Hatchback | ₹200 – ₹500 |
| Sedan | ₹300 – ₹800 |
| SUV | ₹400 – ₹1,200 |
| Luxury Cars | ₹800 – ₹2,500+ |
Claim Process
- Inform insurer immediately after loss/damage
- File an FIR for theft
- Submit documents and estimate
- Insurer approves repair/replacement
- Reimbursement or cashless settlement
Example Scenario
You lose your car key with remote and immobilizer worth ₹18,000.
- Without cover → You pay ₹18,000 ❌
- With Key Replacement Cover → Insurer reimburses ✔️
Who Should Buy This Cover?
- Owners of smart key / remote key cars
- Premium and luxury vehicle owners
- People frequently parking in public areas
- Residents of urban/theft-prone regions
Is Key Replacement Cover Worth It?
Yes. This is one of the most cost-effective add-ons, protecting you from high key replacement expenses and theft-related losses.
Conclusion
Key Replacement Cover is a smart and affordable add-on, especially useful for cars with smart keys, remote entry, and immobilizer technology. It covers replacement and labour charges, saving owners thousands in unexpected expenses.
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