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Zero Depreciation Car Insurance Vs Comprehensive Policy Differences in India

Zero Depreciation Car Insurance Vs Comprehensive Policy Differences in India

Compare Zero Depreciation Car Insurance, aka Bumper to Bumper Insurance against Comprehensive Insurance Policy in India. Review Features, Covers, Claim Deductibles

 

Zero Depreciation Vs Comprehensive Insurance

Car is Made up of Several Parts including :-

  • Plastic Parts (Bumper, Fender to Door Panels) 
  • Rubber Parts
  • Fibre Parts

which all attract depreciation in event of claim by Insurance Company. For instance if bumper needs to be replaced, even the very next day of buying car due to an accident then 50% depreciation will be deducted by Insurance company.

Also with ageing of car, depreciation is presumed by Insurance Company in claim settlement on most other metail parts at slabs of

  • 10% (after 1st Year)
  • 15% (after 2nd Year)
  • 25% (after 3rd year)
  • 35% (after 4th Year)
  • 40% (after 5th Year)
  • 50% (after 6 years)

So as to address same - Zero Depreciation Policy getting Popular in India - where it will cover the depreciation aspect on New Car Claim settlement in just fraction of price - the additional Premium for add on Zero Dep Policy is approx .6% to 1% of IDV Value of the Vehicle.

Thus for a 5 Lakh Car - add on premium for zero dep policy would be approx Rs 4000 - 4500 or for a Mid Sedan priced at Rs 10 Lakh - add on premium would be approx Rs 7000

Also known as Bumper to Bumper Insurance - know about difference between Zero Dep and Comprehensive Policy including

» Addon Covers are available in Zero Dep Policy 

» Deductions in Event of Claim Settlement

» Parts not covered under Zero Dep

» Restrictions in Number of Claims 

Depreciation in Car Insurance 

 

Features Differences in Comprehensive Policy and Zero Dep Policy

  Comprehensive Policy Coverage Zero Dep Policy Coverage
Maximum Number of Claims In 1 Year No Such Restriction Generally 2 Claims are settled a year in Zero Dep and any further claims as per standard policy. However - thats not a rule, you can pre hand check on same  
     
Available till All Cars - New Car till 15 yr Old Car Zero Dep Coverage Provided for First 5 yrs only, However, some Insurance companies basis track record may offer an extension of 6th year too
     
Coverage    
Plastic Parts (Bumper, Fender to Door Panels) - all made up of Plastic 50% Depreciation is Deducted 100%
     
Paint Cost for Painting Plastic Parts 50% of Paint cost is marked Depreciation- where breakup given. In case of a consolidated bill for painting charges,  25% of total part cost will be taken up as depreciation. Labor cost though is 100% covered 100%
     
Labor Charges and Non Deductible Spare Parts / Items 100% Cover / Actuals 100% Cover / Actuals
     
Glass - Windshield, Side Window Glass 100% cover 100%
     
Metal & Wooden Parts In 1st Year of Car - 95%, 2nd Year - 90%, 3rd Year - 85%, 4th Year - 75%, 5th Year - 65%, < 10 yrs - 50% 100%
     
Fibre Item, Battery and Tyres - Claim Permissible only if vehicle is also damaged in accident - Else Claim not acceptable only for Tyres & Battery 50% Value is Eroded as Depreciation 100%
     
Airbags - only in event of Deployment due to Accident. Some Airbags have deployed due to mechanical fault - its not covered in Insurance 50% Value is Eroded as Depreciation 100%
     
HydroStatic Lock - when water enters in engine or Engine Seize due to Oil Leak after Accident - when attempted to drive Car Not Covered Not Covered - unless an add on cover taken
     
Theft Protection Equivalent to IDV Value Equivalent to IDV Value
     

 

 

Deductible Comprehensive Policy Coverage Zero Dep Policy Coverage
Compulsory Excess Deductible in case of Claim Rs 1000 as Compulsory Deductible if Engine < 1.5 Litre, else Rs 2000 Rs 1000 as Compulsory Deductible if Engine < 1.5 Litre, else Rs 2000
     
Salvage Value Salvage Value of Old Spare Parts - upto 5% value is deductible from claim settlement amount. Though this can be negotiated to cover Salvage Value of Old Spare Parts - upto 5% value is deductible from claim settlement amount. Though this can be negotiated to cover
     
Oil Change and Consumable costs- even if due to Accident Deductible as per Cost  Deductible as per Cost 
     
Premium Difference    
Premium Calculation Regular Comprehensive Policy Premium Add on Zero Depreciation Cover Premium is around Rs 3000- 3500 in Hatch, Rs 4000 to 5000 in Mid Sedan, Rs 5000 to 7000 in Mid Range SUV Cars in India

Disclaimer:- Indicative Percentage taken for Calculation of Premium.

You can now Calculate Car Insurance Premium in Seconds

Calculate Car Insurance Premium

IDV Depreciation Slabs in India


Do note that there are Many Add on Covers which can be taken in Zero Dep Plans too - branded as Gold Protection or Titanium Protection Plan having

» 100% Invoice Value covered in 1st Year

» Cover for Hydrostatic Lock and Engine Protection Cover

» Coverage for Consumable items too in event of Claim

Premium ofcourse would be on higher side over and above Zero Dep Plans

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Comments 3

Guest - Jeeva on Monday, 02 July 2018 00:01

Can i buy comprehensive insurance(without any addon) for new car .
Car Dealer/ sbi banker will allow it or not.

Can i buy comprehensive insurance(without any addon) for new car . Car Dealer/ sbi banker will allow it or not.
Guest - VIKAS CHIB on Friday, 05 January 2018 18:48

my query is if i have comprehensive policy in the current year and i want to take zero dep. policy next year. Will there be any inspection of car next year?

my query is if i have comprehensive policy in the current year and i want to take zero dep. policy next year. Will there be any inspection of car next year?
Guest - Virender on Saturday, 24 February 2018 08:29

Yes company representative come to check the scratch and take the photo of your car to know the actual status of your car .So that customer doesn't take cheat the company .

Yes company representative come to check the scratch and take the photo of your car to know the actual status of your car .So that customer doesn't take cheat the company .
Monday, 22 April 2024

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