Also called a nil dep policy, this add-on offers a complete payout for coverage without subtracting the depreciating value of the vehicle. It helps you get complete protection by providing full settlement coverage for your insured vehicle and eliminating depreciation costs. It is to be noted that tyres, tubes and batteries are covered 50% even under this policy.
Another significant thing to know is that the zero dep cover applies to certain claims for cars less than 10 years old. The compulsory and voluntary deductibles (if opted for) still apply with the zero depreciation cover.
Who Should Get It? - Owners of new and expensive cars
Example
Imagine you have a car accident that results in damage to your car's bumper and headlights.
Total repairing cost ₹45,500
With Add-On
Insurer pays
₹45,500
100% total repairing cost
Without Add-On
Insurer pays
₹31,850
70% or less of total repairing cost
You pay
₹13,650
30% or more of total repairing cost
For replacements
Insurer will pay a fixed percentage of the cost of new parts. This is as per IRDAI norms and is the same for all insurers.
Here’s how much insurer will pay
- With Add-On
- Without Add-On
100%
Cost of glass components (eg. Windshield)
100%
Cost of fibreglass parts
100%
Cost of painting meterials
100%
Cost of metal, wooden & other parts
100%
Cost of glass components (eg. Windshield)
70%
Cost of fibreglass parts
50%
Cost of painting meterials
50%
Cost of plastic, rubber, nylon parts & batteries
60%
Cost of metal, wooden & other parts
Tips If you want to avoid paying out-of-pocket for part replacements, Zero Depreciation cover is a must-have.
