Zero Depreciation Insurance vs Normal Car Insurance


Which insurance

  • Zero Dep

    Votes: 28 93.3%
  • Normal insurance

    Votes: 3 10.0%

  • Total voters
    30

sethumurugan

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Guys, My sparky is going to complete three years with this October. I thing in Insurance is also due in October. Can some one clarify me the following doubts.

  • How do I know whether the current insurance is Zero depreciation Insurance or Normal Insurance
  • If not, is it possible to go for Zero depreciation in coming year?
  • If yes, how to proceed?
 
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Guys, My sparky is going to complete three years with this October. I thing in Insurance is also due in October. Can some one clarify me the following doubts.

  • How do I know whether the current insurance is Zero depreciation Insurance or Normal Insurance
  • If not, is it possible to go for Zero depreciation in coming year?
  • If yes, how to proceed?
I renewed my car's insurance (2nd year) through Maruti. At the time of renewal I am told zero depreciation is offered only up to 2nd yr. and it costs around Rs.3000/-more than normal premium. I took normal insurance. I think if it is zero depreciation it should be mentioned in the policy paper.
 

vijay

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It would show as the add on insurance by many companies for the zero dept insurance in your cover note, with extra column added writted with add on coverage and the amount for zero dept.
 
Thread Starter #19
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Hi folks, recently had a accident, polo had very light scratches and a small hole in the door, which took 15 days to get the car ready.

After claiming insurance i had to pay 3k for 40k bill. I had taken zero dep insurance, but the company said they will have to calculate the deprecation and came to 5% for 0-1 year old vehicles. I heard that there is minimum claimable charges of 1.5k for polo and 2k for vento but based on the depreciation i had to pay more.

Now i am thinking to change my insurance to regular normal insurance. In zero dep from bajaj i get additional towing free anywhere in India in case of breakdown.
 
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I had taken zero dep insurance, but the company said they will have to calculate the deprecation and came to 5% for 0-1 year old vehicles.
I have no clue what the above means, its totally contradictory, I mean if you bought zero dep how can they calculate 5% dep. Someone should drag them to consumer court & involve IRDA too! [anger]
 

vijay

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There is only one time claim charges some 1K now for claiming for the insurance apart from that with having zero debt insurance, you are you suppose to pay them calculating depreciation?
 
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I have no clue what the above means, its totally contradictory, I mean if you bought zero dep how can they calculate 5% dep. Someone should drag them to consumer court & involve IRDA too! [anger]
Yes if we need to pay this 5% dep then where is "zero" depreciation insurance. Last year I claimed from my vehicle and I had to pay only processing fess of 1K.
 
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are car doors fully covered in normal insurance?
Why not? Is it not part of the vehicle body which is covered I believe, mostly door damage is repaired, rarely its replaced with a new one. Rubber plastic & glass parts are as per the fine print again I am guessing which is 50% reimbursement?

Any reason why doors would not be covered? By normal insurance you mean comprehensive I guess?
 
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Thread Starter #26
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Why not? Is it not part of the vehicle body which is covered I believe, mostly door damage is repaired, rarely its replaced with a new one. Rubber plastic & glass parts are as per the fine print again I am guessing which is 50% reimbursement?

Any reason why doors would not be covered? By normal insurance you mean comprehensive I guess?
Sorry guys for the confusion in my last post, my policy was comprehensive hence had to pay more. Now i am getting zero dep renewed with unlimited claims for 3k more premium.

About the door part, it is not covered fully in normal insurance as it has some rubber and plastic with glass.
 

TSIVipul

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It has to be zero dep any day and I have seen its benefit very well.
Every year, my cars(especially Corolla and now XUV too) get repairs worth more than the premium itself in the insurance, be it normal insurance and I would have gone bankrupt till date.
 
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I) Types of vehicle insurance

Generally plans offered by general insurance providers can be broadly classified under threecategories:-

a) Third Party Car Insurance covers you against any legal liability to a third party resulting when you are at-fault driver. It covers damage/injury caused by you to another person/property. A Third Party Liability cover is legally mandatory in India under the Motor Vehicles Act.

b) Collision Coverage protects the insured financially against damage to his/her own car. It pays the insured for damage caused by collision. Damage/loss due to theft or vandalism is not included in collision coverage.

c) A comprehensive package car insurance policy is more extensive and preferred by most people. The coverage includes damage or theft of vehicle, third party legal liability and personal accident cover. The policy coverage can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc.


II) Tips to reduce the cost of your vehicle insurance

a) Voluntary deductibles: Deductibles or excesses are the amounts over and above which a claim is payable by insurance provider. If you are willing to settle petty claims for small damages from your pocket voluntarily, then the cost of premium for vehicle insurance can be reduced approximately by thirty per cent.

b) No claim bonus
You can reduce the premium payout by nearly fifty per cent every year, if you don't claim insurance on your vehicle. Insurance companies give the benefit of no claim bonus as record of your good driving year after year. If you sell your vehicle, this no-claim bonus can be transferred to your new insurance policy for the new vehicle and avail lower premium payout.

c) Discount for security features
Few cars come with enhanced security systems which are built-in such as anti-theft alarms and immobilizers. There is low probability of theft of such cars. These cars can be insured for less premium. However, only Automotive Research Association of India (ARAI) approved devices will attract a 2.5 per cent discount on your premium.

d) Safety gears: If you have a brand new car with state-of-the-art technology that is fitted with all kinds of safety gadgets such as air bags, anti-lock brakes and theft alarm system; in effect your car is considered to be safe from harm especially from theft and burglary. Such features of your car help in reducing your car premium to a certain level.

e) Chose coverage carefully: Usually car insurance policy is a pre-defined set of benefits with hardly any room for maneuver. However, if your policy allows you must certainly opt-out of such features which you would not ideally need. This will help you in lowering your insurance premium to a certain degree.

f) Avail discounts: You may avail discounts based on your age, a clean and good driving record, good academic record and in some cases discount on account of your profession. A small discount to the tune of 5% is generally allowed if you meet the criterion laid down by the provider.

g) Loyalty reward: If you already own an insurance policy of any kind and go back to same provider for your car insurance needs then you will be favored upon by the insurance provider. Buying multiple policies from the same insurance provider calls for loyalty reward which helps in lowering your car insurance premium.

III) Add-ons that increase the premium but are useful

a) Nil-depreciation insurance
A nil depreciation policy covers for complete claim for rubber and plastic parts. Generally an insurance company will pay only for fifty per cent of value for these parts that are subjected to wear and tear. With most cars having features with plastic and rubber parts it is advisable to go for nil depreciation policy, although the premium would be increased. In case of a claim it can knock a lot off amount in a repair bill.

b) Personnel cover
A normal comprehensive insurance cover will include personal accident coverage for the owner of the car. For a small fee, additional users who possess a valid driving license and are using the car can also be covered under the insurance policy. By default, most companies include this cover in their comprehensive insurance policies.

c) Repair of glass,rubber and plastic parts
d) Loss of personal belongings
e) Emergency Transport and Hotel Expenses
f) Key Replacement
g) Engine Secure
h) Consumable Expenses
I) Daily Allowance
j) Return to invoice

IV) What is not covered in Car Insurance?

Loss or damage if a policy is not in force
Gradual wear and tear of car and its parts
Loss or damage to vehicle when driven by person without valid driving license
Loss or damage to vehicle as a result of intoxication due to drugs, alcohol etc.
Loss or damage to engine as a result of oil leakage
Loss or damage to vehicle as a result of abuse of car manufacturer’s guidelines

FAQs:- Mahindra First Choice
Royal Sundaram
HDFC Ergo
 
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In my understand following are my inputs

1. a normal insurance cannot be converted in to zero dep in middle of the insurance policy year, but while renewing one can opt for zero dep if the car is elidgble (with in 3 years age or per insurance company policies)

2. normal insurance doesnt cover any part fully well its door or glass (depriciated in % according to the age of the car and meterial of the part (i-e glass, fiber, plastic, metal tin sheet, etc..), you can refer your insurance document or call the insurance company toll free number for exact details.

3. zero depericiation is bumper to bumper policy full amount insurance company will pay and you just need to shell out minimum amount of 1000 rupees or 1500 rupees and if applicable consumerable charges (oil, other fluid (such as power stearing fluid) replacement charges which would not cost a bomb shell

my experiance:
i learnt it in a hard way after my figo met with an accident where in the total expence costs 1.5 lakhs and insurance co paid only 65,000, because its normal insurance and by gods grace the other fault party agreed and that great honest man paid 70,000 and 15,000 from my pocket.
after that only some one let me aware of a policy called zero dep (bumper to bumper) is their and from that time i switched to zero dep
in short my figo was in normal policy on 1st year,

second year my figo was in zero dep
met with a small accident which costs damage to RVM and front windshield and few paint scratches, i spent 1000 rupees and charges for the adhesive used to stick the front windshield (total cost :18,000 from my pocket 1500 rupees insurance company paid 16500)
in the same year while traveling on a bad patchy road a flying stone broken the windshield (same front windshield) this time also i paid only the adhesive and minimum charge which comes to 1500 where in 7500 rupees paid by insurance company

third year my figo was in zero dep (and here i have no rights to claim for NCB because i have claims during previous (2nd year)
fourth year its not my figo it belongs to someone else (sold out)

baught ecosport, and using the third year NCB i transfered the NCB to my new car which saved me 4500 bucks
ecosport B2B insurance costs 26000
figo third year NCB 4500
amount paid towards ecosport B2B insurance 21500
 
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One thing I have recently learned when I renewed my car insurance this year to ICICI Limbars is,
If you have airbags you have to go for zero dep. insurance.
Any insurance company will treat airbag and dashboard as plastic and rubber parts when it comes to accident claimes.
Having learned that the cost of two airbag repairs can go up to 60K+,I coulant emagine to bear 50% of the repair cost.
 
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