Kotak Zero Depreciation Add-on
Like every other asset, you car loses its value with an increase in its age owing to general wear and tear. This devaluation is called depreciation. It does not only reduces the market value of your vehicle but also affects your claim amount. This is because, your insurer factors the depreciation cost of the parts replaced at the time of repair of the vehicle.
However, you can do away with this liability of depreciation cost by purchasing a zero depreciation add-on cover from Kotak General Insurance.
Benefits Of Kotak Zero Depreciation Add-on
Higher Claim Amount: By exempting your from bearing the liability of depreciation cost, the zero depreciation add-on cover offered by Kotak enables you to receive higher claim amounts. By opting for the zero depreciation cover, a policyholder shifts the depreciation liability from himself to the insurer.
Rubber Cover: Unlike most of the insurance companies, Kotak General Insurance’s zero depreciation cover includes the rubber parts of your car in addition to other car parts at 100%. This means that the tyres and tubes are also covered under the zero depreciation add-on cover along with parts made up of fibre glass, glass, metal, plastic, etc. However, batteries are covered only to the extent of 50%.
Depreciation Rate Applicable on Car Without Zero Depreciation Cover
Age of Car
Rate of Depreciation
Under 6 months
6 months to 1 year
Above 10 years
Depreciation Rate Applicable on Different Parts of Car Without Zero Depreciation Cover
Part of Car
Paint work / Rubber / nylon / plastic parts, tires and tubes, batteries and airbags parts
Fibre glass parts
Conditions of Zero Depreciation Add-on Cover
- The zero depreciation add-on cover of Kotak General is only available for cars up to 3 years of age.
- It is not available for cars whose parts are not available in the market.
- Modified cars are also not eligible for this add-on cover.
Kotak User Reviews
206 Kotak Cashless Garages in India
Kotak Zero Depreciation Cover FAQs
I have an imported Lamborghini. Can I avail the Zero Depreciation add-on cover?No. Imported cars and all such vehicles whose parts are not available in the Indian market are ineligible for the Kotak General zero depreciation insurance cover.
I have opted for the zero depreciation cover. Will I have to pay anything now during the claim settlement?The zero depreciation add-on cover only spares you from paying the depreciation cost of the replaced parts. However, the liability of compulsory deductible and voluntary deductible (if opted for) rests with the policyholder.
What is the premium for the zero depreciation add-on cover?The premium of the zero depreciation add-on cover depends on the Insured Declared Value (IDV) of your vehicle. It is directly proportional to the IDV, which means higher the IDV, higher the zero depreciation premium and vice versa.