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Zero Depreciation Car Insurance

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Zero Depreciation Insurance
Features
What is Depreciation
Coverages
Benefits
Buy/Renew
Who Should Buy
Factors
Reasons to Choose
Claim
Documents
Download Policy
FAQs

What is Zero Depreciation Car Insurance?

Zero Depreciation or Nil Depreciation is an add-cover, and a policyholder can claim the entire value of the car without any depreciation. For example, if your car gets damaged during an accident and the car insurance claim amount you receive will be the depreciated amount due to the usage and the age of the car.

If you opt for Nil Depreciation cover, the depreciation value will not be accounted for, and you will receive the claims without any deductions for depreciation.

Zero Depreciation cover will nullify the effect of the depreciation value, and opting for the add-on cover will be beneficial.

Depreciation is the reduction in the value of an asset. When it comes to car, the value of the car depreciates due to usage, wear and tear and age factor of the car. Therefore, the depreciation value is calculated on the basis of age of the vehicle.

Features of Comprehensive Car Insurance

Comprehensive Car Insurance covers third-party liability and own damage. In addition, you can opt for add-ons like Zero Depreciation cover. Choosing Comprehensive Car Insurance will provide benefits like complete protection and peace of mind. Additionally, it will also provide coverage for natural calamities and man-made calamities.

The features of Comprehensive Car Insurance are explained below

Opting for Comprehensive Car Insurance will cover your car for damages caused by accidents. Additionally, Comprehensive Car Insurance will compensate you in case the vehicle is stolen.
Comprehensive Car Insurance provides peace of mind for car owners. It will compensate the owner for damages caused by natural calamities like floods and man-made calamities like riots and strikes.
Comprehensive Car Insurance provides value for money. It also provides coverage for your car in case of accidental damages and third-party liability coverage in case of third-party damages.
Comprehensive Car Insurance also allows you to opt for add-ons that will meet your requirements and complete your coverage.

The coverages provided by Comprehensive Car Insurance are

Own damage cover
Third-Party Liability
Coverage for natural and man-made calamities
Theft of the vehicle

What Is Depreciation, and How Is It Calculated?

Depreciation is the reduction in the value of an asset. When it comes to cars, the value of the car depreciates due to usage, wear and tear and age factor of the car. Therefore, the depreciation value is calculated on the basis of the age of the vehicle.

The depreciation value of the car is determined by the Insurance Regulatory and Development Authority of India (IRDAI). The depreciation table is listed below

Vehicle Age	Rate of Depreciation
Not exceeding 6 months	Nil
Exceeding 6 months	5%
Exceeding 1 year but not exceeding 2 years	10%
Exceeding 2 years but not exceeding 3 years	15%
Exceeding 3 years but not exceeding 4 years	25%
Exceeding 4 years but not exceeding 5 years	35%
Exceeding 5 years but not exceeding 10 years	40%
Exceeding 10 years	50%

The table is sourced from the Insurance Regulatory and Development Authority of India (IRDAI).

Zero Depreciation Car Insurance Coverages

The following are the coverages under a Comprehensive Car Insurance Policy by Shriram General Insurance.

What is Covered?
What is not Covered?

Zero Depreciation or Nil Depreciation will cover the cost of all car parts made from wood, plastic, fibre, and metal.
The depreciation value will not be considered, and the loss incurred to the insured value will be compensated without considering any depreciation.

If the car owner, drives under the influence of alcohol and the car gets damaged, it will not be covered. The reason is driving under the influence of alcohol is punishable under the law, and insurance providers will not cover such claims.
Loss or damage to the tyres or battery of the insured vehicle will not be covered.
Zero Depreciation can only be claimed for a maximum of two times in a policy year.

Benefits of Zero Depreciation Car Insurance

Opting for a Zero Depreciation Cover add-on covers many benefits, some of which are listed below.

Adding Zero Depreciation coverage to your Car Insurance enhances the overall coverage, and you need not worry about the depreciation cost of your vehicle.

Opting for Zero Depreciation coverage on your Car Insurance will help you claim the total repair/replacement cost of the various repair parts.

Comprehensive Car Insurance will cover accidental damage, third-party liability, natural and man-made calamities and theft. However, Zero Depreciation cover will help you get the full claims excluding depreciation value.

Finally, you can be rest assured that your car is insured and your car is secured against various damages, which gives you peace of mind.

Zero Depreciation is an add-on cover, and you can get it by paying an extra premium. The pay is minimal, but the benefits are substantial.

With Zero Depreciation Cover, you can avoid paying out of your pocket. The add-on cover will cover the cost of the car parts' repair and replacement.

Benefits of Shriram Online Car Insurance

How To Buy/Renew Zero Depreciation Car Insurance Online?

Buying or renewing Zero Depreciation Car Insurance online is very easy. Follow these three simple steps to complete the process.

Buy Shriram Car Insurance Online
Renew Shriram Car Insurance Online

Visit the website https://www.shriramgi.com/ or the MySGI App.

Enter all the required details, such as vehicle registration number, model, and date of registration.

Provide vehicle owner details like Name, Address and Email address and then choose Comprehensive Car Insurance. Then opt for Zero Depreciation add-on cover.

Complete the payment by selecting the preferred payment method and get your Shriram Car Insurance policy online.

Check all the below-listed vehicle details.

Details of Vehicle Manufacturer and Model
Registration Number
Date of registration
Previous Insurance Policy Details
Change of Ownership Documents (if applicable)

If you require any new coverages, select the required add-on, such as zero depreciation cover.

Complete the payment by selecting the desired method (e.g., credit Card, Net Banking, or Debit Card). After completing your payment, you can download the renewed policy document

Insure Now

Who Should Buy Zero Depreciation Car Insurance?

Zero Depreciation add-on cover can be useful for everyone. However, certain add-on covers are crafted for certain that might best-suit them. The below are listed who can opt for the Zero Depreciation cover.

Sports Car Owners

People opt for sports cars for the thrill they offer while driving. Sports cars are usually expensive, and so are their parts. So, repairing and replacing car parts can be difficult. Hence, it is suggested that sports car owners opt for a Zero-Depreciation add-on cover.

New Car Owners

People associate buying a new car with achievement and a dream come true. New car owners can opt for comprehensive coverage with Zero Depreciation add-on cover. This cover will provide extensive coverage, and you need not pay out of your pocket.

Luxury Car Owners

Luxury car components are usually high in cost and repair and replace of the car parts can be very expensive. So, it is recommended for luxury car owners to opt for Comprehensive Car Insurance with Zero Depreciation add-on cover.

Factors Determining Zero Depreciation Car Insurance Premium

The premium for Zero Depreciation add-on cover is calculated based on the following factors.

Car’s age

The car's age plays a major role in determining the premium for Zero Depreciation. The car’s age is calculated on the date of registration. So, the older the car, the higher the premium for Zero Depreciation.

Car’s model

Car models use different car parts, and these costs also vary. So, when calculating the premium, the car model will be taken into account.

Engine Type

Cars that have a higher cubic capacity will usually have a higher premium.

Location

Location plays a major role in determining the premium for Zero Depreciation add-on cover. If the policyholder resides in a natural calamity-prone zone, then the premium is slightly on a higher side.

Fuel type

The premium of the Zero Depreciation add-on cover will also be decided based on the car's fuel type, whether petrol, diesel, or CNG.

Top Reasons To Choose Shriram General Insurance for Zero Depreciation Car Insurance

Shriram General Insurance provides Comprehensive Car Insurance, apart from the add-on covers. These policies cater to your needs and provide complete protection to your car. In case any damage occurs to your car, Shriram Car Insurance provides timely assistance with a prompt claim settlement process.

Benefits of purchasing Car Insurance from Shriram General Insurance are

Minimal paperwork
User-friendly digital platform
Affordable premium
Easy and quick renewal
Advantage of No Claim Bonus

How to Claim Zero Depreciation Car Insurance Online?

You can claim Zero Depreciation Car Insurance Online with these simple three steps.

Step 01
Step 02
Step 03

Register your Claim

You can initiate the claim process by visiting the Shriram General Insurance website or the MYSGI app and clicking the claim option.

Submit the Required Details

After that, the website or app will ask you to submit all the required documents, such as the damaged car part.

Claim Settlement

Submit all required documents, and after processing the documents, the claims will be approved.

Intimate Claim

Documents Required for Filing Your Zero Depreciation Car Insurance Claim Online

The documents required to initiate a Zero Depreciation claim process are listed below

Registration Certificate with Fitness Certificate
Driving Licence
Claim Form duly filled and signed
Estimate, Bills, Payment receipt and discharge Voucher
Signature ID proof (Insured)
Customer's bank details with a cancelled cheque for claim payment through (NEFT)
Customer's bank details with a cancelled cheque (Where the Premium is greater than 25,000/-)
FIR (If filed or required)