Is depreciation reimbursement same as zero depreciation?
Asked by: Emely Mante | Last update: October 14, 2022Score: 4.4/5 (24 votes)
Depreciation Reimbursement is when insurer does not deduct any depreciation amount from spare parts while reimbursing. For Example: In HDFC ERGO under the Zero Depreciation like loss to rubber, nylon, glass etc are fully payable except tyres and batteries.
What is the meaning of zero depreciation?
Zero depreciation means – If you have nil depreciation cover then you can claim the total cost of replacement of car parts in case of accidental damage. The depreciation value of the damaged parts won't be deducted from the claim amount. Thus, it helps you save a huge amount.
What is the difference between zero depreciation?
Zero Depreciation is also known as Nil Depreciation or Bumper to Bumper cover that leaves out the 'depreciation' factor from the coverage. It basically means that if your car or bike gets damaged following a collision, no depreciation is subtracted from the coverage of wear and tear of any body parts of your vehicle.
Is bumper to bumper same as zero depreciation?
Zero depreciation cover and bumper to bumper cover are the same thing. They are just two names for a car insurance add-on which insures a policyholder against the depreciation cost of his/her insured's car. Zero Depreciation or Bumper to Bumper plan covers the full cost of replacement.
How do I know if I have zero DEP insurance?
You can easily calculate zero depreciation car insurance premium calculator available on the websites of car insurance online to know the amount of premium you will bear.
Zero dep Cover /Nil Dep / Depreciation Reimbursement Cover in Car/Two-Wheeler Insurance Policy ?
Which insurance company gives zero DEP after 5 years?
TATA AIG Zero Depreciation Cover
The most popular one among them is the zero depreciation add-on. The zero depreciation add-on, also known as bumper to bumper add-on and nil depreciation add-on, provides coverage against the depreciation applicable on your car and its parts.
Is zero dep not available after 5 years?
Depreciation for calculating IDV
However, for vehicles older than five years, or the models that are discontinued by the manufacturer, such an IDV is decided mutually by the insurance company and you, the policyholder. Thus, the cover for zero dep car insurance after 5 years is not available generally.
Is zero dep the same as RTI?
While the Zero Depreciation Add-on cover also sounds like it's got your back, it only pays you back the Ex-Showroom Price, but the RTI insurance also covers road tax and registration charges you had paid.
Does zero DEP cover paint?
If you have opted for an add-on cover such as zero depreciation also known as 'Nil-Dep cover', you need not pay for any depreciation charges towards motor repairs which include painting, rubber part replacement, glass or fiber replacement.
What is not covered in zero DEP insurance?
Zero depreciation car insurance policy offers 100% coverage for all fibre, rubber and metal parts without deduction of depreciation. It does not cover engine damage due to water ingression or oil leakage. Any mechanical breakdown, oil change or consumables are also not covered in this policy.
What is the difference between zero DEP and comprehensive?
The Comprehensive Insurance Plan is an all-inclusive insurance plan. In an unfortunate event, it offers coverage to the policyholder's automobile, the policyholder and also covers third party damage. Zero Depreciation is primarily an add on feature which one can add to their comprehensive insurance plan.
What is the difference between zero DEP and third party insurance?
A third-party liability plan is compulsory to be owned by every car owner being the basic insurance cover while the zero depreciation cover is an optional cover that is added to the plan on the choice of the policyholder to enhance the coverage of the policy.
What is difference between zero DEP and damage?
You can get car insurance coverage for own damage only if you buy a Comprehensive Plan. On the other hand, you need to separately buy the Zero Depreciation car insurance add-on to get coverage against depreciation on the vehicle. Both covers help you get more out of your car insurance plan.
Does zero DEP cover third party?
No, a Zero Depreciation cover cannot be purchased with a Third-party car insurance plan. It can be purchased with a Comprehensive Car Insurance policy.
Can IDV be increased?
IDV cannot be increased more than 10% of the previous IDV, others pls correct me if am wrong. Do not increase IDV more than the present market value of your vehicle. Insurance companies always look into their own rule books and then decide the compensation, hence increasing IDV more than 50% is not recommended.
Is it necessary to take zero depreciation car insurance?
Here is the list of types of people who should buy the zero depreciation cover: 1. New Car Owners – New car owners who have purchased a new car should opt for this cover as depreciation starts since the car is sold. Hence, if a new car gets damaged, one might not get a good amount of claim without this add-on cover.
What is depreciation reimbursement?
Depreciation Reimbursement
It is the most popularly recommended add-on feature, which entitles you to claim the full cost of replacing car parts damaged in accidents without having to pay from your pocket.
How many times can you claim 0 DEP?
You can claim zero depreciation car insurance a maximum of two times during the tenure of your car insurance plan.
Is Bumper covered in zero depreciation?
Bumper to bumper car insurance or full-body insurance provides full coverage for all rubber, fibre, and metal parts of your car without deducting the depreciation value. However, it will not cover engine damage resulting from oil leakage or water ingression.
What is difference between IDV and RTI?
IDV allows you to get a claim amount based on the market value of the car as per make and model as well as age. Taking depreciation in account, the claim you receive will be lesser than the car's value during the time of buying, but for RTI you get the total amount as per invoice.
Can IDV be more than ex showroom price?
The IDV for cars between six months and one year can be 85% of the ex-showroom price. If the car is between the age of one to two years then its IDV can be 80% of the ex-showroom cost. The cars whose age is between two to three years, the IDV for such cars can be around 70% of the original price.
Does IDV reduce every year in zero depreciation?
Premium of a Zero Depreciation Car Policy
IDV is the maximum amount that you can claim against total damage, loss or theft of your car. Thus, the more is the IDV, the more will be the premium towards a zero depreciation add-on cover.
Which company gives zero DEP insurance after 7 years?
IFFCO Tokio offers its zero depreciation cover for all cars not older than 10 years.
What is the advantage of zero depreciation car insurance?
This is where a zero depreciation car insurance plan proves to be resourceful as it covers all the damage-related costs for rubber, metallic, and fibre parts without deducting depreciation. That said, such a policy usually does not cover engine damage caused by oil leakage or water ingression.