overview of Motor Insurance
Motor insurance policy is the most important document for your vehicle because it protects you against financial loss at the time of the accident or natural disaster. Motor insurance protects your vehicle at the time of legal issues regarding your vehicle. Motor insurance policy is the perfect solution is to give complete protection against physical damage or loss from natural and man-made disasters. Motor insurance is the most important paper for all vehicle owners or drivers. It offers protection against physical injuries, death, physical damage and third-party liabilities. Moreover, it ensures peace of mind, security and financial support. In India, motor insurance policy is mandatory for all vehicles like two-wheelers, three-wheelers, cars, commercial trucks, etc. The main usage of motor insurance is to protect your vehicle against accidental damages, thefts, fire, natural disaster and third-party liability.
Types of Motor insurance in India
Third party insurance and comprehensive insurance
Third Party Insurance – In the third party, the policyholder doesn’t get any benefit or claim for his vehicle but it covers losses of the other person met with an accident with our vehicle.
As per India rules, under the provisions of the motor vehicles act, 1988, third party insurance is mandatory in India.
Comprehensive Insurance – Comprehensive policy provides coverage against road accident, natural digester, third-party legal liability, theft, along with the personal accident coverage. The comprehensive insurance policy has some capping on fibre, rubber and metal parts etc. For 100% coverage, you can take add-on cover of zero depreciation in comprehensive policy. With zero deprecation add on the cover this insurance policy offers 100% coverage for all fibre, rubber and metal parts without any capping.
What is zero depreciation insurance?
Zero depreciation insurance is that type of insurance policy which offers 100% coverage. Zero depreciation cover is also called ‘zero dep’ policy. In zero depreciation insurance, if your vehicle gets damaged in the accident, you will receive the entire repairing cost from the insurance company. Insurance policy has, no capping’s in fibre, rubber, metal parts replacement of the body parts, tyres, batteries. The insurance company will pay the whole cost. Engine damage due to water ingression or oil leakage and any mechanical breakdown, oil change or consumables are dues not covered in this policy. It means that if your vehicle gets damaged due to a road accident or natural digester, there will be no capping.
What is two wheeler zero depreciation insurance?
Two wheeler zero depreciation insurance means, at the time of claim settlement, the insurance company will not do any deduction in the claim amount. If you opt for zero depreciation cover in your comprehensive policy, the claim amount will be 100%. Zero depreciation insurance is an add-on cover in your comprehensive two wheeler insurance policy. It provides comprehensive coverage without cappings. If your two wheeler was damaged due to road accident or natural digester, your insurance company will cover the entire cost of the losses at the time of claim. For zero depreciation insurance, you have to pay some additional premium in your comprehensive policy.
What is four wheeler zero depreciation insurance?
Zero depreciation four wheeler insurance policy offers 100% coverage for all damaged parts at the time of road accident or natural digester. It means, if your four wheeler gets damaged due to the accident, you will receive the whole cost from the insurance company. four wheeler insurance policy offers you against losses arising in case your vehicle is damaged or stolen when you file for a claim, you get full coverage for your vehicle without any capping’s. This cover is highly beneficial for four wheeler owners, as it ensures no capping on account of depreciation for replaced parts in case of an accident. For zero depreciation insurance, you have to pay some additional premium at the time of purchasing a new policy and at the time of renewal.
What is commercial vehicle zero depreciation insurance?
Zero depreciation commercial vehicle insurance policy offers 100% coverage for all Physical damages of the vehicle at the time of road accident, natural digester or stolen. Limited companies are selling in zero dep. Commercial vehicle insurance. It is available for limited time example 2 3 years from purchase. As the chances of claim are very high in the case of commercial insurance. zero depreciation insurance is the additional cover for 100% protection of your vehicle. For buying zero depreciation insurance you have to pay some additional premium.
Rules for zero depreciation insurance
Rules for Two Wheeler Zero Depreciation Insurance
In two wheeler insurance, you can get zero depreciation insurance for 5 years easily. Some company offer zero deprecation after 5 years. If your old policy gets expire it highly possible you can get zero depreciation cover in a new policy.
Rules for Four Wheeler Zero Depreciation Insurance
In four wheeler insurance, you can get zero depreciation insurance for 3 to 5 years. Some company offer zero deprecation if your vehicle is not too old. If your old policy gets expire it is difficult to get zero depreciation cover in the new policy.
Rules for Commercial Vehicle Zero Depreciation Insurance
In commercial vehicle insurance, you can get zero depreciation insurance for 2 to 3 years. Some company offer zero deprecation if your vehicle is not too old. If your old policy gets expire it is difficult to get zero depreciation cover in a new policy.
Benefits of zero depreciation insurance in motor insurance
- In zero depreciation insurance, you will get 100% claim for all damages of vehicle happened at the time of road accident.
- In zero depreciation insurance, you get cover according to your IDV if your vehicle is stolen.
- Zero depreciation insurance you get full claim settlement for all damages is happened due to the natural disaster.
- Zero depreciation insurance has no cappings at the time of claim.
- Zero depreciation insurance policy covers the entire cost of a fibre, rubber and metal parts without deduction or capping.