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Shriram Zero Depreciation Car Insurance
All things, including your car, lose value over time because of use and aging. This is called depreciation. Depreciation reduces your car’s market value and also the amount of money you get when you make an insurance claim.
When you make a claim, the insurance company cuts money for depreciation on your car and its parts. So, you get a smaller claim amount.
You can avoid this loss with the Shriram Zero Depreciation Add-on Cover, also known as Bumper to Bumper protection. If you buy this add-on, you will get the full claim amount without any cut for depreciation.
Benefits of Zero Depreciation Add-On Cover
Here are some simple benefits of buying the zero depreciation (bumper-to-bumper) cover with your car insurance:
- 01
Very Low Extra Cost
You only need to pay a small extra amount to add this cover to your car insurance.
- 02
Almost No Extra Payment During Claims
When you make a claim, the insurance company does not cut money for depreciation. This means you spend almost nothing from your own pocket.
- 03
Peace of Mind
With zero depreciation cover, your car gets better protection. You can drive without worry and save more money in the long run.
Motor Insurance Plans By Shriram
Depreciation Rate of Car- Without and With Shriram 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 Rate of Car- Without and With Shriram Zero Depreciation Add-On
| 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.
What is Covered and Not Covered Under Zero Depreciation Add-on Cover?
What it Covers
The zero depreciation add-on helps you get full claim amounts (without cuts for depreciation) in these situations:
Accidental Damages
If your car is damaged in a road accident or collision, this cover will pay for repairs or parts replacement.
Natural or Man-Made Disasters
If your car gets damaged by a flood, earthquake, landslide, fire, riot, vandalism, or terrorist attack, the zero dep cover will help you.
Transit Damages
If your car is damaged while being moved from one place to another, it will also be covered.
What Does it not Cover
Even though zero depreciation gives wide protection, it does not cover everything. Here are a few things that are not included:
Total Loss or Theft
If your car is completely lost or stolen, the claim amount will depend on your car’s market value (IDV), and depreciation will apply.
Normal Wear and Tear
Damages caused by regular use or problems in the car’s electrical or mechanical parts are 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 will be rejected.
Wrong Use of Vehicle
If you use your private car for business or commercial work, any damage that happens will not be covered.
Conditions of Buying Shriram Zero Depreciation Cover
Before buying the Shriram Zero Depreciation Cover, you should know these simple rules:Car Age
This cover is available only for cars that are up to 5 years old.
Policy Type
You can add this cover only if you have a Comprehensive or Own Damage insurance policy.
Claim Limit
You can use the zero depreciation benefit for up to two claims in one policy year.
FAQs
Shriram Zero Depreciation Car Insurance helps you get the full claim amount when your car is damaged. It removes the cost cut for depreciation (loss of value over time).
In normal insurance, the company cuts money for the car’s age and part wear (depreciation) when giving a claim. With zero depreciation cover, you get the full repair cost without any cut for depreciation.
No, it is not compulsory. It is an optional add-on that you can buy for extra safety and bigger claim amounts.
The premium goes up every year because your car loses value over time. As your car gets older, the insurance company takes on more risk, so the cost of the zero depreciation cover becomes higher.
The price of your zero depreciation cover depends on:Age of the carModel of the carPlace where the car is registered and a few other small factors.