Zero depreciation or ‘zero dep’ policies are becoming well-liked among vehicle house owners. These policies supply full claim payment without any deduction for depreciation on the worth of components replaced. This conjointly covers the repairing prices of fiber, glass, rubber parts and plastic. A standard rate of depreciation for a vehicle ranges from 0 to 500th counting on the age of vehicle and therefore the form of material, thereby making you pay money from your pocket at the time of a claim in an exceedingly customary policy.
But in the case of a zero-depreciation policy, no depreciation is charged, thus a 100% reimbursement on replaced or depreciated parts can be availed leading to maximum benefit under the cover. Some insurers which offer zero dep cover in India are Tata AIG General, Bharti AXA General, ICICI Lombard General, Reliance General and HDFC Ergo General. Zero dep is beneficial for brand spanking new cars or cars up to the age of five years. The premium for Zero dep policies is slightly dearer than a regular insurance policy. There is conjointly a cap on the quantity of claims that may be created while not depreciation throughout the term of the policy. Normal wear and tear or mechanical breakdowns don't seem to be coated during a Zero Depreciation cover.