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Add-Ons for Customization
Oriental Zero Depreciation Car Insurance
Zero depreciation is an extra cover (add-on) you can take with a comprehensive car insurance policy. With this cover, the insurance company does not reduce the claim amount for the car’s depreciation.
In simple words, if your car is damaged in an accident, you get the full cost to repair or replace the parts, without deducting the decrease in value because of age or use. This cover is usually available for cars that are up to 10 years old. The number of times you can claim with zero depreciation depends on the insurance company.
Benefits of Oriental Zero Depreciation Add-on
- 01
Higher Claim Amount
With zero depreciation cover, the insurance company does not deduct the car parts’ depreciation. This means you get a higher claim amount.
- 02
Multiple Claims
Oriental allows you to make up to 2 claims under the zero depreciation cover, just like many other insurers.
- 03
Covers Most Car Parts
The add-on cover can be used for many car parts, like the engine, gearbox, plastic, and electrical parts.
- 04
Peace of Mind
You don’t have to worry about losing money because of car part depreciation, giving you financial security during repairs.
Depreciation Rate of Car- Without and With Oriental Zero Depreciation Add-On
| Age of Car | Without the Zero Depreciation add-on | With the Zero Depreciation add-on |
|---|---|---|
| Under 6 months | Nil | 0% |
| 6 months to 1 year | 5% | 0% |
| 1 to 2 years | 10% | 0% |
| 2 to 3 years | 15% | 0% |
| 3 to 4 years | 25% | 0% |
| 4 to 5 years | 35% | 0% |
| 5 to 10 years | 40% | 0% |
| More than 10 years | 50% | 0% |
Depreciation Rates According to the Parts of the Car
| Parts of a Car | Without Zero Depreciation | With Zero Depreciation |
|---|---|---|
| Rubber/Nylon/Plastic parts | 50% | 0% |
| Fibre Glass Parts | 30% | 0% |
| Glass Parts | Nil | 0% |
Disclaimer: The given depreciation rates in the above tables are indicative. Check your policy document to get the exact terms and conditions.
Motor Insurance Plans By Oriental
What is Covered and Not Covered Under the Zero Depreciation Add-on?
Here are some inclusions and exclusions of the zero depreciation add-on cover:
What it Covers
- The zero depreciation add-on helps you get the full repair cost without reducing money for depreciation in these cases:
Accidents
If your car is damaged in a road accident or collision, this cover will pay for repairs or replacing parts.
Natural or Man-Made Disasters
If your car is damaged by flood, earthquake, landslide, fire, riot, vandalism, or terrorism, this cover will help.
Transit Damage
If your car is damaged while being transported from one place to another, it is also covered.
What Does it not Covers
- Even though this add-on covers many things, some situations are not included:
Total Loss or Theft
If your car is completely lost or stolen, the claim will depend on the car’s current market value, and depreciation will apply.
Normal Wear and Tear
Damage from regular use or mechanical/electrical problems is not covered.
Careless or Illegal Driving
If the driver does not have a valid licence or drives after drinking alcohol or using drugs, the claim is rejected.
Wrong Use of Vehicle
If you use your private car for business or commercial purposes, any damage is not covered.
FAQs
This cover is available for cars up to 10 years old.
It protects your car in accidents, natural disasters, man-made damages like riots or vandalism, and damage during transit.
You can make up to 2 claims in a policy year with Oriental Zero Depreciation cover.
It does not cover normal wear and tear, mechanical or electrical failures, total loss or theft, careless or illegal driving, or using the car for business purposes.
Yes, you need to pay a small extra premium to add Zero Depreciation to your car insurance.
Yes, you can add it to your existing comprehensive car insurance policy anytime before it expires.