Friday, 4 August 2017

Zero Depreciation Car Insurance Cover - Bajaj Allianz

We can consider Bajaj Car Insurance among the leading insurance plans. Some prominent insurance companies dominate the car insurance market in India and Bajaj Allianz is one of them. With its innovative and customer oriented plans, it has been maintaining its repute since long. If we are talking about car insurance plan offered by Bajaj Allianz, the most innovative feature, mainly the add-on facilities are worth mentioning.

Car values are prone to depreciate over a span of time. Owing to incessant use, the wear and tear lead to a decline in the value of the car, what is called depreciation. Depreciation is something that no car owner can flee, irrespective of insured or not. However, for insured one, the depreciation value is covered by the insurer.

If you are owing an above average or a luxury car, you may end up paying for a huge chunk while repairing the damages as most of the car parts are expensive. In the extreme cases, the expenses may add up to INR 1 lakh that you may have to bear by own with a standard cover. But if you add a zero depreciation plan, it will pay the amount in full for a slightly higher premium, not more than 20%. The head person of motor insurance Bajaj Allianz General Insurance says that the depreciation deductions can be higher that may exceed 40%. Bajaj Allianz offers zero depreciation along with the roadside assistance with car insurance. Here is a quick view of the plan:

What Zero Depreciation Plan is All About

  • ·         By paying a little extra, you can avail the benefit of zero depreciation, which is an add-on benefit you can buy with your main car insurance policy.

  • ·         A standard car insurance plan doesn’t cover zero depreciation or you end up getting paid for depreciated value of the car.

  • ·         At the time of claim settlement, the insurer estimates and applies the defined depreciation rate to pay the actual amount for claim settlement.

  • ·         With a zero depreciation plan, the insurer settles the claim by paying the full car value without any depreciation. If not then you’ll have to bear the difference between the market rate of the new part and the depreciated one.

  • ·         You can experience a hassle-free claim settlement process with zero depreciation cover

  • ·         This plan is worth buying if you own a brand new car because the premium won’t cost you much as compared to the expensive car parts


Bajaj Allianz Auto Insurance Depreciation Charge

Parts
Depreciation Rate
Rubber/plastic parts, Tyre
50%
Glass made of fibre
30%
Metallic parts
0-50%
Parts with painting
50%

Zero Depreciation: Let’s Take an Example


You may obstruct with the whooping repairing costs of 1 lakh incurred for damages due to an accident, your car met with. However, you are sure enough and take a sigh of relief thinking your insurer would cover the expenses incurred. But when you file the claim asking for the reimbursement, you end up paying up to 50% of the total cost. Why? You forget to buy an add-on zero depreciation cover. At the time of claim settlement, the insurer calculates the depreciated rate of your car and makes the final payout for the damaged car parts. With a zero depreciation cover, you can ask for the full value of your car with any deduction. 

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