Navigating by way of the nice print of protection and claims could possibly be an intimidating activity for a lot of. When shopping for insurance coverage, particularly, there are particular areas that might not be lined within the fundamental coverage.
Regardless of going by way of the nice print, there could also be sure deductions that apply when a declare is made. One in all these deductions is for depreciation.
Particularly for older automobiles, this lower may add as much as a sure proportion of the declare and get deducted. This deduction will be performed away with to an extent if the policyholder is keen to take an add-on.
A zero-depreciation add-on to a complete coverage ensures that there are not any depreciation-based deductions when a declare is made, stated Sandeep Saraf, renewals head for motor insurance coverage at Policybazaar.
For example, if the automotive was purchased three years in the past, there’s a depreciation that applies to the declare quantity.
If a declare value Rs 50,000 is made, the insurance coverage firm will deduct 30% for depreciation, and one may solely be paid round Rs 35,000 for the declare.
“In case you have a zero depreciation add-on, there is no such thing as a such deduction. However different prices that come underneath Rs 1,000—that the shopper should bear,” stated Saraf.
