According to the Motor Vehicles Act of 1988, car insurance is required. However, the Act only requires a third-party policy that safeguards third parties’ interests in case of an emergency. It would help if you chose a comprehensive policy to ensure coverage for the harm done to your vehicle. Additionally, you can choose a zero depreciation cover to broaden the scope of coverage of a comprehensive policy.
Let’s examine their comparative analysis and the concepts of comprehensive vs. zero depreciation coverage options.
What Exactly Is Comprehensive Car Insurance?
A comprehensive Bajaj Allianz car insurance plan covers third-party liabilities and vehicle damage. After the initial year, you can renew the policy for as long as you own a car. Claims are subject to terms and conditions set forth under the motor insurance policy.
What Is A Zero Depreciation Car Insurance Policy?
A comprehensive car insurance poslicy does not cover the depreciation of a car caused by typical wear and tear. As a result, when a claim is made, the appropriate depreciation is subtracted from the claim sum, leaving you responsible for covering the depreciation expense out of pocket. You may be protected against such out-of-pocket costs by a zero depreciation policy. The zero depreciation addition is part of a Bajaj Allianz comprehensive car insurance plan. The insurance policy covers third-party liabilities, vehicle damage, and component depreciation. The insurance provider does not deduct any depreciation from the repaired or replaced parts in case a car insurance claim process is initiated. It covers all incurred repair expenses in full. Claims are subject to terms and conditions set forth under the motor insurance policy. *
Depreciation Rates That Apply To Comprehensive Plans Versus Zero Depreciation Plans
Here are the depreciation rates that would be used on the components of your car under a comprehensive policy as opposed to a zero depreciation policy:
| Parts Of The Car | Only Comprehensive Policy | Zero Depreciation Policy |
| Rubber, Nylon, or plastic car parts | 50% depreciation | Nil depreciation |
| Fibreglass car parts | 30% depreciation | Nil depreciation |
| Glass car parts | Nil depreciation | Nil depreciation |
Analysis Of The Similarities And Differences Between Zero Depreciation Insurance And Comprehensive Insurance:
- Similarities:
- Both plans include coverage for both third-party liabilities and vehicle damage.
- Both plans are voluntary.
- Both plans offer premium concessions for safety devices, Car Association membership, other items, and no claim bonuses. *
- Both of the plans allow for cashless claims.
- Both policies’ coverage periods are one year.
- With both plans, you can choose additional add-on coverage benefits.
- Differences:
| Points Of Difference | Comprehensive Insurance | Zero Depreciation Insurance |
| Scope of cover | Only own damage and third-party liability coverage | Coverage for third-party liability, own injury, and parts depreciation |
| Claim pay-out | Lower because the claim amount is reduced by depreciation | Since depreciation is not subtracted from the claim amount, the amount is higher. |
| Availability | Can be availed for cars of all ages | Can be availed for cars aged up to 5 years |
| Number of claims | As long as the policy’s IDV is not exhausted, claims are not limited. | There may be a cap on the total number of claims you can submit for zero depreciation. |
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*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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