(2024 India Comparison Guide)
Key Differences at a Glance
| Feature | Zero Depreciation | Comprehensive |
|---|---|---|
| Coverage Type | Add-on | Base Policy |
| Depreciation Deduction | None | Up to 50% on parts |
| Premium Cost | 15-20% higher | Standard |
| Best For | New cars (<3 yrs) | Older cars |
| Claim Amount | Full part value | Actual cash value |
(Example: For ₹20,000 plastic part replacement at 50% depreciation)
- Zero Dep: Get ₹20,000
- Comprehensive: Get ₹10,000
What is Zero Depreciation Cover?
Definition:
Also called “Nil Depreciation”, this add-on removes deduction for wear & tear on car parts during claims.
Covered Parts:
✅ Plastic/rubber components
✅ Fiberglass parts
✅ Nylon items
✅ Paint jobs
Ideal For:
- Cars under 3 years old
- Luxury/imported vehicles (high part costs)
- Owners who want maximum claim value
What Does Comprehensive Insurance Cover?
Standard Protection Includes:
✔ Accidents (own damage)
✔ Theft
✔ Natural disasters (floods, earthquakes)
✔ Third-party liability
Depreciation Rules:
- Metal parts: 50% after 1 year
- Plastic/rubber: 50% immediately
- Batteries/tyres: Not covered
Cost Comparison: Is Zero Dep Worth It?
Hyundai Creta (2023 Model) – ₹15L Value
| Policy Type | Annual Premium | 1st Year Claim (₹50k damage) |
|---|---|---|
| Comprehensive Only | ₹18,200 | ₹28,500 (after depreciation) |
| Comprehensive + Zero Dep | ₹21,800 | ₹50,000 (full claim) |
Break-even Analysis:
- Zero Dep costs ₹3,600 extra/year
- Pays for itself with just one ₹15k+ claim
5 Situations When Zero Depreciation is Essential
- New car owners (first 3 years)
- Cars with expensive imported parts (German luxury brands)
- Accident-prone areas (cities with high collision rates)
- Electric vehicles (costly battery replacements)
- Owners wanting hassle-free claims
When to Stick with Basic Comprehensive?
- Cars older than 5 years (high add-on premium)
- Budget-conscious owners (who can afford partial claims)
- Second-hand cars (already depreciated value)
- Low-risk drivers (garaged cars in safe neighborhoods)
Claim Process Differences
Zero Depreciation Claims
- File FIR (for accidents >₹50k)
- Inform insurer within 24 hrs
- Get surveyor approval
- Repair at network garage
- Get 100% claim (no depreciation)
Comprehensive Claims
Same steps, but final payment deducts:
- 50% for plastic parts
- 30% for metal parts
- 100% for consumables (tyres, oils)
FAQs
Q: Can I add zero dep after buying comprehensive policy?
A: Yes! Most insurers allow adding at renewal (extra premium applies).
Q: Which insurers offer best zero dep claims?
A: ICICI Lombard, HDFC Ergo, and Bajaj Allianz have highest settlement rates.
Q: Does zero dep cover engine damage from flooding?
A: Only if you have engine protector add-on (separate purchase).
Q: Is zero dep available for bikes?
A: Yes, but limited to bikes under ₹2L value.
Expert Recommendation
“Buy Zero Dep for first 3 years + Comprehensive thereafter. For ₹3-5k extra/year, you save ₹15-25k per claim on modern cars with plastic-heavy designs.”
— Auto Expert, MotorInsure India
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