United India Zero Depreciation Add-on

Zero depreciation covers cars that are damaged during an accident or theft without factoring in depreciation costs, which would have otherwise been included. It is applicable only to new cars with a maximum age of 5 years.

Generally, even if car owner has comprehensive insurance, during a claim, the insuring company deducts the depreciation from the actual claim to bring out the final settlement figure. However, with a Zero Depreciation insurance add-on, claim amount does not take into consideration that the car might have been depreciated during the tenure of the insurance. Instead, in case of any loss or damage due to accident or theft, the insured can claim complete amount without factoring depreciation from it. Hence, even if the car might have had certain scratches on paint or faulty mechanics due to excessive usage, reimbursement will be for the entire cost of replacement.

Benefits of Zero Depreciation Insurance

Zero Depreciation insurance comes with a lot of perks for the insured. Here they are listed below.

• Claim amount with a Zero Depreciation add-on is always higher than one without it.
• In case of major damages or loss, the insured gets rid of out-of-pocket expenses and most of them are covered without taking depreciation into account.
• Addition of Zero Depreciation to the current car insurance adds a lot of value. Total coverage is huge and investments are reduced to almost nil.
• Gives the owner a peace of mind regarding any unforeseen mishaps, like an accident or theft.

There are a few basic things to look while trying to purchase this insurance cover:

• Zero Depreciation add-ons can be taken for vehicles not older than 5 years..
• The premium amount and claim for insurance with Zero Depreciation add-on are directly affected by the make and model of any concerned vehicle.
• In general cases, the driving history of the owner is taken into consideration. Applicants who have a bad record with handling cars on roads generally have to pay a higher premium.
• Luxury cars, like those from premium brands, will incur a higher cost if Zero Depreciation add-on is included, are likely to be charged higher premium.

United India Zero Depreciation Claim Process

• Intimate the insurer

The insured needs to get in touch with the nearest UIIC office or branch. Following this, the insurance company will make a survey of the vehicle in question. Hence, if any grave accident has taken place, like fire, etc., the vehicle is to be kept at the spot.

The third-party needs to be rushed to the nearest hospital for medical attention. In the unfortunate case of death of the victim, contact the local police. An FIR of the accident is mandatory.

• Documentation and formalities

Submit the claim form and complete all formalities. A copy of FIR will be needed here.

• Surveying of the vehicle and accident spot

The insurance company will visit the spot and perform a final survey.

• Get a repair quote

The vehicle will then be taken to a garage for a repair quote and claim (without factoring depreciation) will be disbursed after completion of all formalities.