Worried about car repair costs? Check out nil depreciation policy

Insurance companies are coming up with new `nil depreciation’ policy. This policy will cover repair and replacement cost of parts from bumper to bumper at no cost to customer and applicable to both metallic and non-metallic.

This is available as an add on cover to the private car package policy and roughly costs an extra 0.40% to 0.65% of the Insured’s Declared Value (IDV) depending on the age of the vehicle up to 1500 cc. For vehicle above 1500 cc, the premium load is 0.45% to 0.70% from one to three years.

This means a new car with an IDV of Rs 3 lakh, the additional premium will work out to Rs 1,200 for the first year which will go up to Rs 1,950 in the third year of the car.

The New India Assurance Company Limited, which provides nil depreciation as add on cover for private car whose IDV is between Rs 3 to Rs 21 lakh, covers a new car for three years under this policy. An official from the company said any claim after the first two admissible claims under the enhanced cover will be settled as per the provisions of normal private car package policy. “Also any claim occurring after three years from the date of purchase of the new car will be settled as per the provisions of normal private car package policy,” the official added.

Source: The Time of India

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