You went shopping at the mall, and when you returned to the parking lot, your pocket felt light.
Your car key is gone.
You think: "No problem, I'll just get a duplicate from the showroom. I have insurance."
Reality Check:
1. A modern "Smart Key" for a car like a Hyundai Creta, Kia Seltos, or Mahindra XUV700 costs between ₹15,000 and ₹25,000.
2. Your Standard Comprehensive Insurance will pay you ₹0.
Disclaimer: Standard motor policies usually exclude "loss of keys" unless the car itself is stolen or the key is stolen during a house burglary (with FIR). Simple negligence is not covered.
Lost Your Smart Key?
1. Why Are Keys So Expensive Now?
Gone are the days when a roadside locksmith could cut a key for ₹100.
Modern keys contain encrypted Transponder Chips and "Remote Start" features that talk to your car's ECU.
If you lose one, the service center usually mandates replacing the entire Lockset (Door locks + Ignition + Boot + Both Keys) to ensure the lost key cannot steal the car.
Total Bill: ₹30,000 to ₹60,000 depending on the model.
2. The "Key Protection" Add-on
Since standard insurance excludes "Lost Keys," insurers offer a specific add-on called Key Replacement Cover.
🔑 What It Covers
- Cost of New Key: Pays for the procurement of the new OEM key.
- Lockset Replacement: If needed for security, it pays to change the entire lock system (which is the most expensive part).
- Labor Charges: Covers the high labor cost of reprogramming the ECU/Immobilizer.
Premium Cost: Surprisingly cheap. Usually ₹300 to ₹600 per year.
3. Does It Affect No Claim Bonus (NCB)?
This is a critical detail.
With many digital insurers (like Digit, Acko, or Zurich Kotak), claiming for a Key Replacement does NOT reduce your No Claim Bonus (NCB).
However, some traditional PSUs might deduct NCB unless you also have an "NCB Protect" rider. Always check policy wording.
4. The "Theft" vs "Loss" Confusion
Understand the difference to avoid rejection:
| Scenario | Standard Policy | With Key Protect Add-on |
|---|---|---|
| Key Stolen (Burglary) | Covered (Requires FIR) | Covered |
| Key Lost (Dropped/Misplaced) | Not Covered | Covered |
| Key Damaged | Not Covered | Covered |
5. Crucial: The Police Report (NCR)
- Mandatory Requirement: Even with the add-on, insurers require a "Lost Property Report" (NCR - Non-Cognizable Report) from the police.
- Good News: In most states (Delhi, Maharashtra, Karnataka), you can file this Online instantly without visiting the police station.
- Surrender Old Keys: If the insurer pays for a full lockset replacement, you must hand over the spare key and the old lockset to them.
Is It Worth It?
If you drive an older hatchback with a manual key, maybe not.
But if you drive a car with "Push Button Start," the Key Protect cover is a no-brainer.
Paying ₹400 now to save ₹40,000 later is the smartest investment you can make.
Action Plan:
- Check your car key. Is it a "Smart Key" (Remote)?
- Call your showroom and ask: "What is the cost to replace the full Lockset?" (Prepare to be shocked).
- Add "Key Protection" immediately during your next insurance renewal.
Helpful Resources:
Digit Insurance: Key Protection Add-on Guide
Bajaj Allianz: Why You Need Key Replacement Cover
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