What is the meaning of EP in car insurance?
Asked by: Lexie Hoppe | Last update: July 24, 2022Score: 4.7/5 (73 votes)
Earned Premium (EP) — that portion of a policy's premium that applies to the expired portion of the policy. Although insurance premiums are often paid in advance, insurers typically "earn" the premium at an even rate throughout the policy term.
What is ZD in car insurance?
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.
What is the meaning of ZD cm Pb KP in car insurance?
ZD:- Zero Depreciation Cover. EP:- Engine Protector Cover. CM:- Consumable Expenses Cover. RTI:- Return to Invoice Cover. PB:- Personal Belongings Cover.
What is ZD EP cm?
1. A zero depreciation add-on cover, also known as Nil Depreciation and Bumper-to-Bumper cover, is a popular car insurance add-on cover under the own damage section of the car insurance policy. 2.
What is nil DEP?
Zero depreciation cover is also known as bumper to bumper or nil depreciation cover. With zero depreciation coverage, the insured does not have to pay the depreciation value of the damaged or replaced parts and the policyholder can claim.
Car Insurance explained - Comprehensive Insurance
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.
What is IDV value?
Insured Declared Value (IDV) is the maximum sum insured fixed by the insurer which is provided on theft or total loss of the insured vehicle. Basically, IDV is the current market value of the vehicle. If the vehicle suffers total loss, IDV is the compensation that the insurer will provide to the policyholder.
Is zero depreciation required?
As far as possible it is advisable for new cars (up to three years) to opt for zero-depreciation car policy. Better to pay a little more (premium) than to pay a lot more (repairs). Zero-depreciation is a good deal even if you have to pay a little extra.
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.
How do I know if my insurance is zero DEP?
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.
What is zero DEP Bumper to Bumper insurance?
Bumper to bumper insurance, nil depreciation or zero depreciation is a type of car insurance policy that offers complete coverage to your vehicle irrespective of the depreciation on its parts.
What is RSA and CPA in insurance?
CPA cover in car insurance means Compulsory Personal Accident cover. A compulsory Personal Accident cover of Rs. 1 lakh is available for individual owners of the car while driving (Available only if the owner of the car holds a valid driving license).
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.
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 painting covered in car insurance?
Various factors go into deciding whether you can or should claim insurance on your car body/paint repairs namely: Extent of damage: as a thumb rule, consider insurance claims only if repair and painting is needed for more than 2 body panels (or Rs 6000+ in repair charges)
What is EP and RTI in insurance?
RTI or Return to Invoice is a cover that is part of comprehensive car insurance plans. The add-on allows you to receive compensation equal to the car's invoice value i.e., the original value of the car when you bought it. The claim applies when a car is stolen or when it is beyond repair.
Is higher IDV better?
At best, IDV is the maximum sum insured amount that the insurance company pledges to compensate for your loss. Getting an IDV that is close to the market value of your car is always the best bet. Decreasing the IDV value will result in lower premium but it also provides you with a lower coverage than is required.
Does IDV reduce every year?
The depreciation factor reduces the IDV claim every passing year, and so does its premium. Within the first six months of the new vehicle, the value of the car depreciates by 5%. If a vehicle is more than five years old, its price is determined by mutual discussion between both the parties (car owner and insurer).
What is IDV and NCB?
Insured Declared Value and the No-claim-bonus are two important factors of every two wheeler insurance policy. The IDV of a two wheeler is fixed at the time of renewing or purchasing the insurance policy.
How many times insurance can be claimed?
Generally, there are no restrictions on the number of claims you can make under the car insurance policy in a year. However, one should remember that the car insurance claim affects the NCB (No Claim Bonus). Repeated claims in a year may also increase the premium when you renew the policy.
What is the difference between zero DEP and comprehensive insurance?
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.
Is clutch plate covered under insurance?
The policy does not cover damage to the car engine due to water ingression or oil leakage, and standard wear and tear to components such as tyres, clutch plates, bearings, etc.
Which company gives zero DEP insurance after 10 years?
IFFCO Tokio offers its zero depreciation cover for all cars not older than 10 years.