What is zero depreciation policy?
Depreciation is not included in deciding the value of a vehicle under this policy. If the vehicle is damaged due to any accident or other reason, then the insurance company pays the full amount of the claim. One can understand this with an example.
Suppose Mahesh has bought a vehicle worth Rs 5 lakh. After 4 months, Mahesh's car collided with another vehicle and it cost Rs 50,000 to fix it. Mahesh had general car insurance. He presented his claim in the insurance company.
The insurance company gave Rs 30,000 in lieu of his claim. Mahesh had to bear the cost of the remaining Rs 20,000 from his pocket. Mahesh could have saved the cost of Rs 20,000 if he had zero insurance.
What is the difference?
Insurance companies believe that the price of a car is fixed after one year. Insurance companies set a different value for the car for each new year. When the owner of the vehicle presents a claim in case of any loss in the vehicle, then the beam company pays money by reducing the value of the vehicle under depreciation. This happens in insurance policies of insurance companies. Most buy compressive insurance for their car or vehicle. You are promised full settlement in zero depreciation cover.
Is there any benefit in taking zero dep?
At first glance, you will feel that the zero die policy is better than ordinary car insurance. But everything has a price. The premium of zero dep cover can be up to 20 percent more expensive than normal car insurance. This means that even if the claim is not needed, you will pay more premium. It can also be deduced that you have already paid future losses.
Apart from this, it should also be noted that your claim number can also be limited in Zero Dep cover. In fact, many people used to put even small dents for the claim. Due to this inexplicably increasing claims, companies have now limited the number of claims. Apart from this, Zero Dep Insurance can be purchased only for new trains, the maximum limit of which is three years. This means that from the fourth year onwards you will have to buy a general insurance policy.
Who Should Buy Zero Depp?
If you are buying a new vehicle, then it will be beneficial for you to buy zero dep. Apart from this, many people believe that zero dep insurance is only for the new driver, who has recently learned to drive.
Keep these things in mind
Before purchasing zero dep insurance, compare it with the premium of general insurance. It is possible that you can be duped just by cheating Zero Depp. Also, keep in mind that how many claims you can get in a year. If your company is offering a large number of claims, then do not take claims for every small thing.
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