All your mechanical assets suffer wear and tear with time. This damage caused by the continuous use of the assets leads to a decrease in the value of your assets. Same is the case with your car and two wheeler.
As the monetary value of your car/two wheeler reduces over a period of time, it affects your motor insurance plan as well. When you file a motor insurance claim, you receive the claim amount after standard deductions such as the excess as mentioned in the policy and the depreciation value.
But, with a zero depreciation cover, you can save on this depreciation value. If you compare motor insurance plans, you’ll realise that zero depreciation cover gives you the benefit by settling maximum of your claim amount by excluding the depreciation cost of your vehicle.
So, does it mean that if I buy a zero depreciation cover, I do not have to pay anything from my end when I file a motor insurance claim?
No. While, this is one of the most common myths that goes around when talking about zero depreciation, there are many other misconceptions surrounding this cover.
Let's clear out some of the myths and highlight the facts associated with zero depreciation.
Myth : Zero depreciation applies only to cars and not two wheelers.
Fact : The zero depreciation rider is available for your cars as well as your bikes. You can opt for this add-on cover while purchasing or renewing your vehicle insurance online . If your claim is admissible, then you can get the benefit of the zero depreciation cover while filing a two wheeler or car insurance claim.
Myth : I can make multiple claims when having a zero depreciation insurance cover.
Fact : As the insurance companies take a higher risk by providing you with the zero depreciation cover, they restrict the number of times you can file a motor insurance claim. Most of the insurance companies limit this number to two times in the policy period.
Myth : Zero depreciation shield covers every wear and tear.
Fact : A few general exclusions of the zero depreciation cover are:
- Damage caused due to mechanical slip-up
- Damage caused because of common wear and tear
- Damage of uninsured items like bi-fuel kit, tyres and gas kits
- Complete/total loss of the vehicle
- Engine damage due to water ingression or oil leakage
Myth : I don't have to pay the compulsory deductible in the event of any claim.
Fact : You have to pay the compulsory excess, which depends on the cc of your vehicle. For ex., the compulsory excess for a private car up to 1500 cc is INR 1000 and for a private car above 1500 cc is INR 2000. Similarly, in case of two wheelers this excess is INR 100 irrespective of the cc of the two wheelers.
We hope that you now have a better understanding of the zero depreciation cover, which you can buy as an add-on with our car insurance and two wheeler insurance policies.
We encourage you to opt for this cover as it greatly reduces your out of pocket expenses during a motor insurance claim. While this add-on may cause a slight increment in your premium while checked on the vehicle insurance premium calculator , we assure you that the returns would be very positively disproportionate to these nominal costs. We care for your vehicle the same way you care for it. We would like you to know that you can enjoy your rides stress-free, while we take away your worries related to your precious vehicles.