Zero Depreciation Policy
Zero Depreciation
Policy
In Motor insurance, a Zero Depreciation Policy implies that
you get compensation without any deduction for depreciation on any replacement
of parts arising due to accident. This will ensure complete coverage for your
car.
In a normal Standard Motor Policy, rate of depreciation
ranges from 0 to 50% depending on the age of vehicle and the type of material,
thereby creating a hole in your pocket. Whereas in case of a Zero Depreciation
Policy, no depreciation is charged, thus a 100% re-imbursement on replaced or
depreciated parts can be availed leading to optimum benefit under the cover.
Listed below are some of the features and benefits of a Zero
Depreciation Policy :-
Ø
100% re-imbursement on replaced depreciated
parts.
Ø
All fibre, plastic, rubber and metal parts are
covered without applying depreciation.
Ø
Zero depreciation cover applies mostly to new
cars and does not cover cars that are more than 3 years old.
Ø
The premium is slightly higher than in a
standard car insurance policy.
Another point to be noted is that certain companies put a
restriction on the number of claims that can be opted without depreciation
during a policy period.
A Zero Depreciation Cover can be bought at an additional
premium amount. This policy is usually opted for mid and top-segment luxury
cars as most people prefer an enhanced cover to obtain optimum benefits. The
advantage of availing Zero Depreciation cover also implies that you get your
money’s worth.
Subscribe to:
Post Comments
(
Atom
)
No comments :
Post a comment