Zero Dep Insurance
Zero-depreciation car insurance or Zero Dep Insurance is an addon or a part of the comprehensive car insurance policy. This addon implies that the car will not be considered for general depreciation during claims.
Without the cover, insurers account for depreciation on the vehicle’s parts and then pay claims by eliminating the depreciation of the assets. The add-on is essential to ensure that there is the subtraction of depreciation and you can get the rightly owed money as per claims.
The IRDAI has specified depreciation rates, on car cost depreciation that includes 50% depreciation on Rubber, Nylon, and Plastic Parts, along with Batteries, 30% depreciation on fiberglass components, and incremental depreciation of 5%, 10%, and so on for every year for wooden parts.
With Zero Dep Insurance, car owners can save on money by not having to pay for the depreciated parts of the vehicle. The addon ensures a higher claim amount and helps you with peace of mind during unfortunate accidents. This addon is not applied for cars which that are more than 5 years old, and not when there is an absence of a driving license or mechanical breakdowns. The engine oil and the compulsory are not part of the coverage too.
The Zero Dep Car Insurance or Zero Dep Insurance For Bikes is usually an additional 15% over the insurance premium. Check out the Policy Mine website for more details, today!