What is the difference between zero DEP and third party insurance?

What is the difference between zero DEP and comprehensive policy?

Since Comprehensive Insurance is a premium motor insurance policy, you have the option to choose from various ‘Add on’ covers or ‘Benefits’. … So, basically, Zero Depreciation is one of the ‘Add on’ covers that you can choose among a platter of mouth-watering added insurance benefits for your vehicle!

What is the benefit of zero DEP insurance?

Zero depreciation meaning – If you have nil depreciation cover then you can claim the total cost of replacement of car parts in case of accidental damage. The depreciation value of the damaged parts won’t be deducted from the claim amount. Thus, it helps you save a huge amount.

What is not covered in zero DEP insurance?

Zero depreciation car insurance policy offers 100% coverage for all fibre, rubber and metal parts without deduction of depreciation. It does not cover engine damage due to water ingression or oil leakage. Any mechanical breakdown, oil change or consumables are also not covered in this policy.

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What is comprehensive zero DEP and third party?

Comprehensive insurance is an extensive car insurance plan coverage for car damage caused by an accident, theft, natural calamities, vandalism, fire, etc. Comprehensive car insurance is a blend of insurance provided by a third party and OD (own damage) cover.

What is third party insurance?

Third-party insurance, which is also sometimes referred to as ‘act-only’ insurance is a statutory requirement for all vehicle owners as per the Motor Vehicle Act. It is a type of insurance cover where the insurer offers protection against damage to the third-party vehicle, personal property and physical injury.

Is TYRE covered under zero depreciation insurance?

Mechanical breakdown, along with wear and tear of certain parts like tyre and brake pads are not covered under Zero Depreciation. Any damage caused due to either of the two, also cannot be claimed under Zero Depreciation auto insurance.

How many times can we claim zero DEP?

Having a zero depreciation add-on as part of your plan ensures that during a claim settlement, you get your complete claim amount- without subtracting or accounting for your car’s depreciation. No, there is no limit no number of claims as long as the total claims amount is up to your sum insured.

Is higher IDV better?

Simply remember, the greater the IDV, the higher is the premium and vice versa. So if you haven’t calculated the IDV for your car, it will be nearly impossible to arrive at the OD premium. … That is simply because your car’s OD premium is directly proportional to the IDV; lower the IDV, less the premium you pay.

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What is KP in insurance?

The protection under the lost or damage of car keys the add-on cover will repay the cost to replace or repair the keys is known as KP in car insurance.

How is IDV calculated on a new car?

IDV is calculated as manufacturer’s listed selling price minus depreciation. The registration and insurance cost are excluded from IDV. The IDV of the accessories which are not factory fitted, are calculated separately at extra cost if insurance is required for them.

Is zero depreciation Same as bumper to bumper?

Zero depreciation cover and bumper to bumper cover are the same thing. They are just two names for a car insurance add-on which insures a policyholder against the depreciation cost of his/her insured’s car. Zero Depreciation or Bumper to Bumper plan covers the full cost of replacement.

What is IDV value?

IDV refers to Insured Declared Value and is the maximum sum assured fixed by the insurer that is offered in case of theft or total loss of a vehicle. In short, IDV is the current market value of your vehicle. … One should utilize a car insurance calculator for the said purpose.