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SBI Zero Depreciation Car Insurance
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As time progresses, the objects start losing their value. The same thing happens with cars as well. The amount with which you purchase the vehicle will reduce significantly in due course. This is called the depreciation of the vehicle. And at the time of claim settlement, policyholders see deductions on the claim amount, making them somewhat discontent with their policy. However, if you can add SBI car insurance zero depreciation cover, you can avoid such a situation. SBI General Insurance, which offers this policy, will not deduct depreciation from the claim amount, thereby enriching your claim settlement experience with it. Maybe with elaboration, you could understand this vital concept of SBI car insurance policy better. Let’s begin!
How does the SBI Four Wheeler Insurance Zero Depreciation Add-on Cover Apply?
When SBI sets out to settle the claim, the depreciation amount is deducted from the claim amount. The more the age of your vehicle the less will be your claim amount. Zero depreciation of the vehicle is not included in the base policy. It can be purchased alongside your SBI comprehensive car Insurance policy or a standalone own damage policy of the insurer. So, if SBI four-wheeler insurance zero depreciation add-on cover is included in your car insurance policy, at the time of settling the claim, the insurer will not deduct the depreciation amount. You will get the whole amount for which you make a claim.
Benefits of SBI Four Wheeler Insurance Zero Depreciation Cover
Additional aids that you get from the SBI four-wheeler insurance zero depreciation add-on cover:
- Higher Claims
You get to file for higher claims with SBI car insurance zero depreciation add-on cover, and the insurer will reimburse you the whole amount.
- Addtional Savings
The additional premium amount that you pay after purchasing the cover is minimal if you compare it with the cost of the depreciation of the vehicle that you otherwise will have to bear. You spend some money behind this cover, but ultimately, you save more than you spend.
- Monetary Benefits
Monetary compensation is provided for the parts that are prone to depreciation.
Depreciation Rate Applicable on Car with and without SBI Zero Depreciation Add On Cover
| Car’s Age | Rate of Depreciation without Zero Depreciation Cover | Rate of Depreciation with Zero Depreciation cover |
| Under 6 months | Nil | Nil |
| 6 months to 12 months | 5% | Nil |
| 1-2 yrs | 10% | Nil |
| 2-3 yrs | 15% | Nil |
| 3-4 yrs | 25% | Nil |
| 4-5 yrs | 35% | Nil |
| 5-10 yrs | 40% | Nil |
| Above 10 yrs | 50% | Nil |
| Car Parts | Rate of Depreciation (No zero dep cover) | Rate of Depreciation (with zero dep cover) |
| Paint Work /Rubber/Nylon/Plastic parts, tires and tubes, batteries, and airbags parts | 50% | Nil |
| Fiberglass parts | 30% | Nil |
| Glass parts | Nil | Nil |
What is Included Under an SBI Car Insurance Zero Depreciation Add-on Cover?
The following benefits are included in the SBI car insurance zero depreciation add- on Cover:
- Vehicles not aged more than five years are allowed for a zero depreciation add-on cover from SBI.
- The amount spent for the parts that are repaired or replaced will be reimbursed to the policyholders.
- Cost of damaged batteries and tires will be reimbursed from the insurer. However, the insurer will deduct 50% depreciation for the same.
- SBI car insurance zero depreciation add-on covers the parts made of rubber, fiberglass, nylon, and other plastic parts.
What is not Included Under a SBI Car Insurance Policy with Zero Depreciation Add-on Cover?
These are the exclusions of the SBI four-wheeler insurance zero depreciation add-on cover:
- Driving with an invalid license.
- Driving after consuming intoxicants.
- Mechanical or electrical breakdown of cars is not covered under this add-on cover.
- Total damage/ loss of the depreciating parts.
Factors Affecting SBI Car Insurance Zero Depreciation Add-on Cover
Factors that impact SBI four-wheeler insurance zero dep add-on cover:
- Only twice during the tenure of the insurance policy, you can avail of the benefits provided by this cover.
- Wear and tear of the depreciation parts are not eligible for SBI four-wheeler insurance zero depreciation add-on cover.What is Included Under an SBI Car Insurance Zero Depreciation Add-on Cover?
The following benefits are included in the SBI car insurance zero depreciation add- on Cover:
- Vehicles not aged more than five years are allowed for a zero depreciation add-on cover from SBI.
- The amount spent for the parts that are repaired or replaced will be reimbursed to the policyholders.
- Cost of damaged batteries and tires will be reimbursed from the insurer. However, the insurer will deduct 50% depreciation for the same.
- SBI car insurance zero depreciation add-on covers the parts made of rubber, fiberglass, nylon, and other plastic parts.
What is not Included Under a SBI Car Insurance Policy with Zero Depreciation Add-on Cover?
These are the exclusions of the SBI four-wheeler insurance zero depreciation add-on cover:
- Driving with an invalid license.
- Driving after consuming intoxicants.
- Mechanical or electrical breakdown of cars is not covered under this add-on cover.
- Total damage/ loss of the depreciating parts.
Factors Affecting SBI Car Insurance Zero Depreciation Add-on Cover
Factors that impact SBI four-wheeler insurance zero dep add-on cover:
- Only twice during the tenure of the insurance policy, you can avail of the benefits provided by this cover.
- Wear and tear of the depreciation parts are not eligible for SBI four-wheeler insurance zero depreciation add-on cover.
Add ons for your Car Insurance
SBI Zero Depreciation Car Insurance FAQs
1. Can I get the SBI four-wheeler zero depreciation add-on cover for my second-hand car?
All vehicles (aged not more than five years) are covered under SBI car insurance zero depreciation. In extreme cases, SBI can ask for the examination of the vehicle before allowing you to purchase this add-on cover.
2. Can I renew my SBI zero depreciation car insurance add-on cover?
You can renew the same on the specified renewal date. Since the add-on premium and the one for the base car insurance policy will have to be paid together on the same date. The payment of the consolidated premium will renew both your base and zero depreciation car insurance policy you purchase from SBI General Insurance.
3. Do I get the full claim amount after purchasing the SBI car insurance zero depreciation add-on cover?
After the purchase of the SBI four-wheeler insurance zero depreciation add-on cover, you will not have to pay the depreciation of the vehicle. But if you file a claim for something that you have not purchased in your policy or if something is excluded from your policy, you do not get the amount for that claim.
4. Can my SBI zero depreciation cover be renewed If I fail to do so on the expiry date?
You can do so after it expires. SBI General Insurance will give you about 90 days from the policy expiry date to renew.
5. Does SBI car insurance zero depreciation add-on cover mechanical or electrical breakdowns of the vehicle?
No, the add-on does not cover the same.