The Zero Depreciation Insurance is also called comprehensive car Insurance or in short name as Nil Dip insurance which has included zero depreciation on cover, and this policy does devoid the general depreciation during any claim through insurance policy.
Having Nil Dip Insurance will make you claim the full amount during the claim and there will be no depreciation subtracted from your amount of claim, where the car parts and accessories included in policy are valid to have full claim during any damage or loss.
How Zero Depreciation Insurance Calculated
Based on the regulation from the Insurance Regulatory and Development Authority of India (IRDA), the Depreciation value is calculated on accessories and parts differently.
- Fiberglass Having 30% Depreciation Value
- Rubber, Nylon, Plastic Parts and Batteries having 50 % depreciation value
- Wooden parts having 5% for first year and increasing 5 % for increase in Years
Benefits of Nil Dip Insurance Addon
There are many benefits of having Zero Depreciation Policy Addon in your general insurance policy cover, of which we have listed few for your reference.
- Save Money: Having this Addon will save your financial balance and there will be no money from your pocket to be invested. Else the depreciation amount calculated will always be the burden of the policy holder during claim.
- Get Higher Claim: Nil Dip Insurance Addon does make your claim for a higher amount, depreciation on accessories will not be calculated making your claim amount to go higher.
- Presence of Mind: Having a Nil Dip Add on your car insurance will always make you have peace of mind. Any kind of accident or damage to your vehicle will be fully covered by Insurance policy without letting you pay for your pocket.
Cost of Zero Depreciation Insurance Add on
Having added the Nil Depreciation Insurance or Nil Dip to your current insurance policy will generally cost 15% of your premium amount. Thus making you invest a little more in premium will vice versa benefit your high during any claim.
The Add on policy of your vehicle insurance will only be applicable if your car age is less than 5 year. More than 5 years will not be having any chance to get protected under Zero Depreciation Addon.
Yes, Comprehensive cover is an insurance policy for your vehicle and the Nil Dip is an Addon which is applied extra, and this Addon can be applied on Comprehensive or Third party or any other vehicle policy.
There is no limit for claims to be made under Zero Depreciation Policy Add on cover, and the amount of claim should not meet the total sum assured which makes you claim for numerous times. Having Zero Depreciation Insurance addon will let you get full amount of damage without having any subtraction of depreciation amount.