Bajaj Allianz Zero Depreciation Add-on

As car parts depreciate with age, policyholders need to pay a higher amount as claim settlement since, the insurance company factors in depreciation costs while calculating the claim amount. This explains why policyholders must opt for the “Zero Depreciation” add-on cover that ensures a comprehensive car insurance cover without deducting the depreciation from the claim amount. Instead, if you opt for a standard comprehensive cover without zero depreciation cover, your insurer will hand over the claim amount based on the “current value” of your vehicle.

However, nothing comes for free and this is true for add-on covers too. To avail the benefits of a Zero Depreciation cover, you need to pay 15-20% added premiums over and above the basic premium charges. Despite being costly, the idea of zero depreciation cover appeals to most customers owing to the peace of mind that it promises.

Benefits Offered Under Bajaj Allianz Zero Depreciation Add-On Cover

Some of the benefits of choosing a zero depreciation add-on cover along with Bajaj Allianz standalone own damage plan or comprehensive car insurance plan are listed below:

• Complete Claim Amount Without Depreciation: When you include a zero depreciation cover alongside your basic car insurance plan then it enhances the coverage of your existing car insurance policy. With the help of this add-on cover, the chances for the policyholder to pay depreciation expenses from their own pockets decreases when registering a claim for their car insurance cover.
• Enhanced Protection: A zero depreciation add-on cover is designed to offer added insurance coverage to your existing car insurance plan. It offers enhanced protection to the policyholder at the cost of a little additional premium over and above the premium paid towards standard car insurance plans. It offers coverage towards the depreciation part of the insured car.
• Economical: Although a zero depreciation additional cover can increase the premium payable towards the car insurance plan, however, it is a very beneficial add-on cover as it offers enhanced coverage. It helps the policyholder in saving money while availing a claim for car insurance plan as it assists the policyholder in availing the amount of claim without including any type of depreciation cost.

Depreciation Rate Applicable on Car With And Without Zero Depreciation Add-on

Disclaimer: Battery / Plastic / Nylon / Rubber parts -> 50% covered; Fiberglass -> 70% covered, Wooden & Metallic parts -> Depreciated basis age of vehicle (normal)

Following coverages are offered under a Bajaj Allianz car insurance plan with a zero depreciation add-on cover:

• It offers compensation for the replacement or repair cost of the depreciable parts beared by the policyholder while claiming settlement.
• This cover may even include partial damages to the tyres and battery.
• This cover offers compensation for car’s depreciable parts like fiberglass, nylon, rubber or plastic parts of the car.

What All is Not Included Under a Bajaj Allianz Car Insurance Plan With a Zero Depreciation Cover?

Following aspects are not offered coverage under Bajaj Allianz Car Insurance Plan with a zero depreciation cover:

• Total damage or loss of the insured vehicle is not offered coverage under a zero depreciation add-on cover.
• Normal ageing or wear and tear of the car would not be offered coverage under a car insurance plan with zero depreciation add-on cover.
• Own damages incurred by the insured car because of mechanical failure or fault.
• Loss or damage of the uninsured car items like tyres, bi-fuel kit or or gas kits.

Factors Affecting Bajaj Allianz Zero Depreciation Cover

Buying comprehensive car insurance does not always make you eligible to opt for Zero Depreciation Cover too. Some factors affecting zero depreciation cover include:

• Opt for this cover only if you are ready to pay additional premium charges.
• If your car is less than five years old, then you can buy zero depreciation cover.
• Damages to car’s engine, batteries or other parts can also be claimed subject to certain conditions.
• With a basic zero depreciation cover in place, you can get only the damaged car parts repaired or replaced.