Zero depreciation cover for two wheeler / car insurance

Any automobile is going to have a depreciation in its value with time due to the wear and tear of the various parts of the vehicle. A bike or a car even just out of the show is definitely not going to have the same value as it was in the showroom. This depreciation in the value of your vehicle is going to have its effect whenever there is a claim. When a claim occurs on your vehicle in a few years from the date of your purchase, the insurer would settle the expenses only after deducting the depreciation value of the automobile parts. The percentage of depreciation has been fixed by IRDA based on the age of the vehicle. Now, with taking depreciation into consideration, the purpose of purchasing a comprehensive insurance policy has been lost as you have to shell out a part of the expenses from your own pocket. This depreciation can be even upto 50% for a 5 years old vehicle.

To overcome the financial burden caused due to the depreciation, you shall opt for an optional cover, which is the Zero Depreciation cover. By opting the the zero depreciation insurance cover along with the basic comprehensive insurance cover, your insurer would settle you the entire expenses in case of any claim and you need not shell out anything from your pocket. It would also cover your vehicle for all Rubber, Nylon and Plastic parts and also on all fiber glass components, which would not not covered in a basic comprehensive insurance policy. This zero depreciation cover would be available only for cars or bikes below 5 years old.

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