Cholamandalam Zero Depreciation Add-on

Cholamandalam Zero Depreciation Add-on

Every commodity loses value over its age and so does your car. The continuous devaluation of a commodity is known as depreciation. Apart from reducing your car’s market value, depreciation also results in a reduction in the insurance claim amount of your car. This is because at the time of a claim, the insurer factors the depreciation cost in the claim amount.

Thus, even if your car is only 3-4 years old, your car will be valued at a price 25% less than the invoice price due to depreciation and you will receive a relatively lower claim amount. However, you can do away with the burden of bearing depreciation cost by purchasing the Cholamandalam Zero Depreciation add-on.

The zero depreciation add-on cover can only be availed with a comprehensive car insurance plan.

Cholamandalam Zero Depreciation Add-on Benefits

Higher Claim Amount: The zero depreciation add-on cover exempts the policyholder from bearing the cost of depreciation. It makes the insurer liable to pay for the applicable depreciation. Thus, the policyholder is able to get a higher claim amount.

Multiple Claims Even For Aged Vehicles: The policyholder can file 2 claims during the tenure of a policy. Also, the cover is available for cars up to 5 years of age. Both these things mean that all new car owners can make a total of 10 claims in a span of 5 years, if opted for 1-year tenure policy.

​Depreciation Rate Applicable on Car Without Zero Depreciation Cover

Depreciation Rate Applicable on Different Parts of Car Without Zero Depreciation Cover

Conditions for Zero Depreciation Add-on Cover

• A maximum of two claims are permissible during the policy period for vehicles aged not more than 5 years.
• The company will bear a maximum liability of Rs 20,000 per part to be replaced for vehicles with age not more than 5 years.