Know how NCB & zero depreciation cover in motor insurance helps reduce costs in the long run
Sponsored Post 04 May 2022
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If you are buying motor insurance in India for the first time, you may be baffled by the various types of insurance coverage available in the market. Besides mandatory car insurance policies like third party liability and comprehensive car insurance, you can opt for several top-up covers or riders that can help you cover a wide variety of risks. Such  add-ons include No Claim Bonus (NCB) Protection, Loss of Personal Belongings, Quick Road Assistance, Return to Invoice, and Key Replacement.*
 
No Claim Bonus
No Claim Bonus (NCB) is a reward offered on insurance premiums for not making a claim during the policy period. The No Claim Bonus (NCB) can be earned for each claim-free year.*
 
Briefly, NCB is a reward offered by your Motor Insurance provider for not making any claim in the preceding year. It ranges between 20 and 50 per cent and is calculated as a percentage of the own-damage premium. If you are purchasing a Car Insurance policy for the first time, there will be no accumulated NCB.
 
*Visit the official website of IRDAI for further details.
 
Zero Depreciation Add-On Cover
The zero-depreciation car insurance cover is one of the most sought-after motor insurance add-on covers. Policyholders should opt for the "Zero Depreciation" add-on cover to ensure that depreciation is not deducted from the claim amount. If you choose a standard comprehensive policy without  zero depreciation coverage, your insurer will pay out based on the "current market value" of your vehicle.*
 
However, nothing comes for free and this is true for add-on covers also. If you wish to take advantage of a Zero Depreciation policy, you will need to pay an additional premium of 15-20% over and above the basic premium. Despite being costly, zero depreciation covers are attractive to most customers because of the peace of mind that accompanies them.*
 
* Standard T&C Apply
 
Benefits of Zero Depreciation Add-On Cover
Some of the benefits of choosing a zero depreciation add-on cover along with a standalone own damage plan or comprehensive car insurance plan (such as the ones offered by Bajaj Allianz General Insurance Company) are listed below:
  • Complete Claim Settlement without Depreciation: Including zero depreciation coverage with your basic car insurance plan enhances the coverage of your existing policy. With this add-on cover, the chances of a policyholder having to pay depreciation expenses out of their pocket decrease when a claim is filed.*
  • Enhanced Protection: Adding a zero depreciation add-on cover to your car insurance plan will increase your protection. The policyholder receives enhanced coverage for a  slight increase over and above the premium paid for standard car insurance.*
  • Peace of Mind
    Families invest a large sum of their savings in buying a car. Complete financial security of the car against any damages including depreciation through a zero depreciation add-on cover enables car owners to have peace of mind to enjoy their cherished investments.*
 
* Standard T&C Apply
 
What's the need for Zero Depreciation Add-on Coverage?
  • Purchase of luxurious cars  to avoid high maintenance costs due to the high cost of spare parts and the high rate of depreciation*
  • Inexperienced drivers, due  to the higher probability of meeting an accident*
  • People who live in accident-prone areas*
    To protect your vehicle from dents and bumps, along with maintaining its pristine condition*
 
* Standard T&C Apply
 
Summing Up:
Zero depreciation cover will help to reduce costs in the long run. You can opt for a zero depreciation cover from Bajaj Allianz General Insurance Company, which comes with essential features and beneficial offerings.* No-claim bonus plays an important role in reducing the two-wheeler insurance premium amount (OD Premium). It is a great way to keep in check the premium amount during motor insurance renewal, as the NCB feature can lead to a significant markdown in your OD premiums.*
 
* Standard T&C Apply
 
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
Comments
eliverto
3 weeks ago
"to avoid high maintenance costs due to the high cost of spare parts and the high rate of depreciation"

Should be corrected to high " accident damage repair cost" . People would think that this add-on cover will take care of their overpriced maintenance expenses for luxury cars.
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