The government of India has made Car Insurance mandatory in India. Yet, people around the country carry fake insurance papers to fool the authority. What they don't realise is that it causes them more harm than anyone else. Buying a valid Car Insurance policy is as important as fastening your seat belt.
Car Insurance Coverage
Zero Depreciation Cover
It's crucial for customers to know that their general Car Insurance will not provide full reimbursements. For example, if the repair costs of your Car is Rs.1 lakh, then your normal Car Insurance will only provide Rs.70, 000 and the remaining difference of Rs.30, 000 should be paid out of your pocket.
If you want to avoid shelling out extra money at all costs, then zero depreciation cover is the right selection for you. Opting for this cover would provide you with reimbursement, which doesn't factor in your depreciating car value, thereby greatly reducing your financial burden. So basically, a zero depreciation cover will help you shield yourself from paying high costs during claim settlement.
There are variety of Car Insurance policies available for customers in India with zero depreciation cover being one of them. Let's consider the difference between standard Insurance policy and zero depreciation cover in the following table.
|Parameters||Regular Health Insurance||Standard Car Insurance|
|Claim settlement||Full claim settlement through a hassle-free process||Insurance Claim amount is determined by the current market value of your car, which factors in depreciation|
|Repairing costs and plastic fibre||Your insurance company will bear most of the cost under the zero depreciation cover.||You will have to bear the cost|
|You would have to pay for any non-payable components.|
|Age of the car||Generally covers only new cars||Can be taken for a car that is more than 3 years old|
Important Factors to be considered before Choosing this Plan
A new car is eligible to receive 100% replacement cost for the first year only. Keeping this in mind, car owners should consider opting for a zero depreciation cover policy from the 2nd year. Make sure that your Car Insurance coverage is extensive so that you can avail maximum number of benefits.
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