Bajaj Allianz Zero Depreciation Cover

Bajaj Allianz, one of the prominent insurance companies in India, and provides a comprehensive car insurance policy. The add-on covers given with this policy are beneficial and unique.
Cars depreciate with age. Along with the wear and tear that comes with the regular usage of the vehicle, the depreciation due to aging also leads to a decrease in the Insured Declared Value (IDV) of the car. The motor insurance companies consider the IDV of the vehicle while making the payment towards settling a claim. So, if the person has an old car of more than five years, then he will have to bear a considerable deduction in claim amount at the time of a claim settlement.

Why Should You Buy a Bajaj Allianz Zero Depreciation Cover?

 

• By paying an extra premium, one can enjoy the zero depreciation coverage as an add-on cover as the standard car insurance policy doesn’t include zero depreciation cover.
• During the insurance claims, the insurance companies always apply the depreciation rate to calculate the amount payable (while considering the cost of damaged car part as well)during claim settlement.
• The cost difference between the market price of the new part and depreciated part needs to be borne by the car owner.
• If the vehicle of the policyholder is already equipped with zero depreciation insurance cover, during the claim settlement, then the insurer pays the entire claim amount without accounting the depreciation cost of the vehicle.
• Zero depreciation ensures the hassle-free claim settlement process.

For a brand new car, buying this zero depreciation cover is a worthwhile investment as long as paying an additional premium doesn’t affect your budget.

Crucial Features of Bajaj Allianz Zero Depreciation Cover

• Applicable on new cars only - Only new cars can avail the benefit of zero depreciation cover.
• Compulsory excess:
  Most of the time, 100% coverage offered is not offered by the insurer. Some insurance companies don’t cover the charges of normal wear and tear and mechanical breakdown under this add-on cover. Every customer, irrespective of the point whether he has taken a zero depreciation rider or not, has to pay a mandatory policy excess which is known as compulsory excess.
• Restriction on the quantity of the claim:
  A zero depreciation cover may limit the claims which can be made on an annual basis. However, it may vary from one insurer to another. From the insurer's perspective, setting such a limit is essential as it aids in decreasing the claim incidents to a large extent. If the insurer does not impose such restriction, the customers may raise claims for even small scratches and dents.

 

Difference between the Comprehensive and Zero Depreciation Cover

Features	Comprehensive car insurance policy	Zero depreciation cover
Maximum number of claims in a year	No limits	2
Type of cars for which it is applicable	All cars	Cars aged =  5 years or less
Affordability	Affordable	Expensive
Coverage:
Plastic parts including door panels and bumper	50% depreciation is considered	100%
Cost of painting materials	50% depreciation is considered. If the bill is a consolidated one, 25% of total cost is considered as a depreciation.	100%
Labour fee	100%	100%
Glass parts, along with side window glass, windshield,	100%	100%
Airbags	50% depreciation is considered.	100%
Hydrostatic lock	Not covered, but can be included with an add-on cover	Not covered, but can be included with an add-on cover
Theft	=Insured Declared Value (IDV)	Equal to Insured Declared Value (IDV)
Deductibles:
Compulsory excess in the event of a claim	Not covered. The insured should pay the standard rates as per the policy	Not covered. The insured should pay the standard rates as per the policy
Cost of oil change and consumables, even in the case of an accident	Not covered. It is subtracted from claim amount	Not covered. It is subtracted from claim amount

A vehicle is vulnerable to a lot of threats, damages, and unforeseen circumstances. The comprehensive car insurance policy protects the vehicle from every damage that it may face. You can enhance this protection by choosing among a wide range of add-on covers as per your requirement.