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Bajaj Allianz Car Insurance Zero Depreciation Policy

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Bajaj Allianz, one of the leading insurance companies in the country, offers a comprehensive car insurance policy. The add-on covers offered with this policy are also quite innovative and useful.

Cars are prone to depreciation with age. The normal wear and tear with use and the depreciation resulting from aging lead to decrease in the Insured Declared Value (IDV) of the vehicle. Car insurance companies consider the IDV of the vehicle when they make payments towards a claim. So, if you have a relatively old car you will have to bear a considerable part of the claim amount at the time of a claim settlement.

Why Should You Buy Bajaj Allianz Zero Depreciation Cover?

  • By paying an extra/higher premium, you can enjoy zero depreciation coverage, an additional benefit (add-on).
  • Usually a standard/basic car insurance policy doesn’t include zero depreciation.
  • During insurance claims, an insurer always calculates and applies the depreciation rate to arrive at the amount payable (with reference to the damaged part of the car) for settling the claim.
  • The difference in cost between the market price of the new part and depreciated part needs to be borne by the insured/car owner.
  • If your vehicle is equipped with zero depreciation add-on insurance cover, during the settlement of a claim, the insurance company pays the entire claim amount without accounting for the vehicle’s depreciation.
  • Zero deprecation ensures hassle-free claim settlement and complete peace of mind.
  • For a brand new car, buying this add-on is definitely a worthwhile investment as long as paying the additional premium doesn’t pinch your budget.

Bajaj Allianz Car Insurance Depreciation Rates

Depreciation in cars can be classified into two categories:

  1. Depreciation of car parts - Applicable for partial loss claims
  2. The rate of depreciation of car parts is assessed uniformly across the board by all car insurance companies. The standard depreciation rates followed in the industry are as listed below:

    • For a paint job, depreciation of 50% is applicable on the material costs involved. If the service centre charges a consolidated amount for the paint job, the insurer considers the depreciation as 25% of the total cost.
    • For all plastic/nylon and rubber parts including tubes, tyres, air bags, and batteries, depreciation of 50% is considered.
    • 30% depreciation is applicable for fibreglass parts.
    • For parts that are made of glass, the depreciation is considered as nil.
    • The depreciation rate for all other parts, including wooden parts, are as indicated in the table below:
    Age of the car Percentage depreciation
    Below 6 months nil
    6 months to 1 year 5%
    1 year to 2 years 10%
    2 years to 3 years 15%
    3 years to 4 years 25%
    4 years to 5 years 35%
    5 years to 10 years 40%
    More than 10 years 50%

    So consider a scenario in which a fibreglass car part that costs Rs.10,000 is replaced during the repair work on your car following an accident. The insurance provider only pays 70% of the replacement cost, i.e., Rs.7,000. This implies that you will have to pay the remaining Rs.3,000 from your pocket.

    Consider another example in which a paint job was done on the car. If the cost of the paint work was Rs.3,000, you will have to pay Rs.1,500 because the insurer only bears 50% of the cost.

  3. Depreciation of the car with age - Applicable for total loss claims
  4. The Insured Declared (IDV) of a car is determined on the basis of its depreciation with age. The depreciation of a vehicle for the calculation of IDV is as detailed below:

    Age of the vehicle Depreciation for the calculation of IDV (Percentage)
    Less than 6 months 5%
    More than 6 months but not exceeding 1 year 15%
    More than 1 year but not exceeding 2 years 20%
    More than 2 years but not exceeding 3 years 30%
    More than 3 years but not exceeding 4 years 40%
    More than 4 years but not exceeding 5 years 50%
    More than 5 years The IDV is agreed upon jointly by the insurer and the car owner

Some Important Aspects of Bajaj Allianz Zero Depreciation Cover

  1. Applicable only on new cars
  2. Usually, only new cars can avail the zero depreciation add-on cover. A certain age limit is given by the insurer, with regards to the same. If your car is older than the specified limit, it is not eligible to enjoy this add-on.

  3. Compulsory excess
  4. The coverage offered is not 100%, always. Some insurers don’t cover normal wear and tear and mechanical breakdown under this add-on. Every customer, irrespective of whether he/she has taken a zero depreciation rider has to pay a mandatory policy excess. This is known as compulsory excess.

  5. Restriction on number of claims
  6. A zero depreciation add-on cover may limit the number of claims that can be made annually. Again, this may vary from one insurance company to another. From the perspective of the insurer, setting such a limit is crucial as it helps in bringing down the incidence of claims to a large extent. If the insurer had no such restriction, customers may even raise claims for small scratches and dents.

    Your car is vulnerable to a lot of threats, damages and unforeseen circumstances. A comprehensive car insurance policy protects your car from every possible danger. Strengthen this protection by choosing from a wide range of add-on covers. Give your vehicle the attention and care it deserves by choosing the right car insurance policy and add-on covers.

    How is the Premium for a Zero Depreciation Cover Calculated?

    Each car insurance company has a standard set of procedures using which it determines the premium for a zero depreciation cover. But the following factors are taken into consideration by all insurance providers when they calculate the premium:

    • The age of the car
    • The make and model of the vehicle
    • The location where the policyholder resides and uses the car

Bajaj Allianz Zero Depreciation Cover Vs Comprehensive Car Insurance

The key differences between a zero depreciation cover and a comprehensive car insurance policy from Bajaj Allianz are as shown in the table below:

Parameter Comprehensive car insurance policy Zero depreciation cover
Maximum number of claims in a year No restrictions 2
Available for cars All cars Cars aged 5 years or below
Coverage:
Plastic parts including door panels and bumper 50% depreciation is considered 100%
Cost of painting materials 50% depreciation is considered. If the bill is a consolidated one, 25% of total cost is considered as depreciation 100%
Labour charges 100% 100%
Glass parts, including side window glass, windshield, etc. 100% 100%
Wooden and metal parts
  • If the age of the car is 1 year - 95%
  • If the age of the car is between 1 year and 2 years - 90%
  • If the age of the car is between 2 years and 3 years - 85%
  • If the age of the car is between 3 years and 4 years - 75%
  • If the age of the car is between 4 years and 5 years - 65%
  • If the age of the car is between 5 years and 10 years - 50%
100%
Battery, fibreglass parts, tyres, and tubes (The claim is accepted by the insurer only if the car is also damaged in the accident. Otherwise, it is not honoured for tyres and battery) 50% depreciation is considered. 50%
Airbags 50% depreciation is considered. 100%
Hydrostatic lock Not covered, but can be included in the coverage with an add-on cover Not covered, but can be included in the coverage with an add-on cover
Theft Equal to Insured Declared Value (IDV) Equal to Insured Declared Value (IDV)
Deductible:
Compulsory excess in the event of a claim Not covered. The insured will have to pay the standard rates as per the policy Not covered. The insured will have to pay the standard rates as per the policy
Cost of oil change and consumables, even in the case of an accident Not covered. It is deducted from the claim amount as per the cost Not covered. It is deducted from the claim amount as per the cost

In addition to the above factors, it should be noted that the premium for a zero depreciation cover is around 20% more than the premium for the comprehensive car insurance policy.

Things to Keep in Mind Before Buying Zero Depreciation Cover

The zero depreciation cover, also referred to as nil depreciation cover or bumper to bumper insurance, clearly has a wide range of advantages over the standard comprehensive plan. But the fact that it is significantly more expensive than a comprehensive cover can be a deterrent for people looking to buy affordable insurance for their vehicles.

Paying for a zero depreciation cover implies that you are paying a higher amount initially (on a consistent basis) so as to avoid contributing in a future claim settlement scenario. Nevertheless, the peace of mind that the zero depreciation insurance promises is priceless.

When Should You Opt for the Zero Depreciation Cover?

  • If you are the owner of a brand new car, then it makes sense to protect it with a zero depreciation cover.
  • If you are a new driver, then your chances of getting involved in an accident are high. So buying bumper to bumper insurance is recommended.
  • People with luxury cars should be very careful on the roads, as replacement of parts of such vehicles can be an expensive affair. Zero depreciation cover is a very useful insurance solution for luxury cars.
  • If you live in an area with high incidence of accidents, then you should ideally protect your vehicle with zero depreciation cover.

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GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

Bajaj Allianz Car Insurance Zero Depreciation Policy Reviews

Page 1 of 15 1 2 3 4 5
  • Bajaj Allianz Car Insurance
    "Good to Go with Bajaj"
    0.5 4.0/5 "Great!"
    The conditions and the insured which they are providing is good, I have insured Ford Car with Bajaj Allianz, the premium amount is reasonable but they can reduce it. Its 1.5 year old year but still the insurer providing 24 hours service, cash less garages and they have tie up with many centers, the response is great.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 17, 2019
  • Bajaj Allianz Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I have a car insurance policy with Bajaj allianz from last 2 years, a premium of Rs 13000 has to be paid for this insurance policy. There was no claim experience so far with this car insurance. This policy has full coverage with 0% depreciation.
    Was this review helpful? 0
    , secunderabad
    Reviewed on Jan 03, 2019
  • Bajaj Allianz Car Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    I am having a car insurance policy with Bajaj Allianz from last 3 years, Rs 7800 has to be paid as a premium for this insurance. I have no claim experience so far with this insurance. Customer service is good as they intimate for renewing the policy. I am happy with the coverage value of this insurance.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Dec 20, 2018
  • Bajaj Allianz Car Insurance
    "Good claim experience"
    0.5 4.0/5 "Great!"
    My dealer has provided me a car insurance policy with Bajaj Allianz. I have paid the premium amount of Rs. 25000. I had a claim experience once and i have got the claim amount of 100%. This policy covers upto Rs. 5 lakhs. They have covered me a bumper to bumper facility, road side assistance and no claim bonus.
    Was this review helpful? 1
    , chennai
    Reviewed on Dec 19, 2018
  • Bajaj Allianz Car Insurance
    "Best Policy"
    0.5 5.0/5 "Blown Away!"
    This policy covers Bumper to bumper cover and cashless garage covers. It holds zero deprecation coverage Where the representative explained the policy very well . Am satisfied with premium amount which am making . Overall am satisfied with the Bajaj Allianz insurance company .
    Was this review helpful? 1
    , ahmedabad
    Reviewed on Dec 16, 2018
  • Bajaj Allianz Car Insurance
    "Low premium with better benefits"
    0.5 5.0/5 "Blown Away!"
    One more policy taken for my another car its Maruthi dezire I paid the premium around Rs. 4000 its a old car, around 6 to 7 years, I have comprehensive plan its not zero depreciation plan. The customer service is good the premium is low and the max cover is nice.
    Was this review helpful? 2
    , new delhi
    Reviewed on Dec 13, 2018
  • Bajaj Allianz Car Insurance
    "Low premium with better benefits"
    0.5 5.0/5 "Blown Away!"
    My both the polices are insured with Bajaj Allianz, I have taken one policy for my Maruthi Ciaz car, I paid the premium was around Rs. 8000, I have taken the comprehensive it covers for the loss, damage, other natural disaster, hence I am fine with them.
    Was this review helpful? 1
    , new delhi
    Reviewed on Dec 13, 2018
  • Bajaj Allianz Car Insurance
    "Good claim process with fast service"
    0.5 4.0/5 "Great!"
    The premium amt is good in Bajaj Allianz and economical too, I paid Rs. 25k for one year. I have Hyundai I ton card its 3 years old, they gave me best insured declared amount, I got the papers on time, my claim exp is good, car got damaged and replaced and gave it on time, even they have lined with many service centers.
    Was this review helpful? 0
    , bangalore
    Reviewed on Dec 05, 2018
  • Bajaj Allianz Car Insurance
    "Its Good"
    0.5 4.0/5 "Great!"
    Cost of the car policy is good in Bajaj Allianz. I have Maruthi card they best insured value based on the age. I don't have any claim experience. The insurance company gave me Rs. 2.5 lakhs for one year, third party cover and personal accidental cover is good.
    Was this review helpful? 0
    , bangalore
    Reviewed on Dec 03, 2018
  • Bajaj Allianz Car Insurance
    "GOOD SERVICE"
    0.5 4.5/5 "Excellent!"
    BAJAJ ALLIANZ LIFE INSURANCE is the insurance provider where i am holding my car insurance policy with this provider. I am holding it from past 3 years and the premium i paid 5600 rupees for my car. The policy is for fully insured for my car.
    Was this review helpful? 2
    , coimbatore
    Reviewed on Nov 23, 2018
  • Bajaj Allianz Car Insurance
    "Superb Policy"
    0.5 5.0/5 "Blown Away!"
    I selected Bajaj Allianz for my car. I chosen the company because of the lower premium rates. They have sent all my documents to my residential address. They do have regular follow up with the customer regarding the car insurance. I never had any issues with this policy. I pay the premium amount of Rs. 6300 and i have not availed the bumper to bumper facility. They have provided me the no claim bonus upto 50%.
    Was this review helpful? 2
    , bangalore
    Reviewed on Nov 01, 2018
  • Bajaj Allianz Car Insurance
    "Best policy"
    0.5 5.0/5 "Blown Away!"
    I am having a car insurance policy with Bajaj Allianz and i have taken this policy for 2 years. A premium of Rs 17000 has to be paid for this insurance policy. I have no claim experience so far with this insurance policy and this policy has full coverage with 0% depreciation.
    Was this review helpful? 1
    , nellore
    Reviewed on Oct 31, 2018
  • Bajaj Allianz Car Insurance
    "Good policy"
    0.5 4.0/5 "Great!"
    I got Car insurance from Bajaj allianz through As The premium amount is nominal one am satisfied with it , as it has low premium amount with cashless garages comprehensive cover with bumper to bumper coverage .Customer service and response is good . I pay it annually through online banking
    Was this review helpful? 1
    , vadodara
    Reviewed on Oct 17, 2018
  • Bajaj Allianz Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I am having a car insurance with Bajaj Allianz from last 5-6 years, i pay a premium of more than Rs 9000. I had claimed 2 times with this insurance policy. There was no cashless garage facility provided. They covered 80% and i am happy with the coverage value.
    Was this review helpful? 2
    , hyderabad
    Reviewed on Oct 11, 2018
  • Bajaj Allianz Car Insurance
    "Best policy"
    0.5 5.0/5 "Blown Away!"
    I have a car insurance with Bajaj Allianz from last 4 years and it is a good policy to use. I pay a premium of Rs 14000 for this insurance policy. I also get no claim bonus and it is 0% depreciation, it has a full coverage and there was no claim experience so far.
    Was this review helpful? 1
    , hyderabad
    Reviewed on Oct 02, 2018
  • Bajaj Allianz Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    My car is insured with Bajaj Allianz from last 3 years, they charge Rs 1000 as processing charges. It has a full coverage and i pay a premium of Rs 12000 for this insurance policy. My claim experience was good with this insurance and it is 0% depreciation.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Oct 01, 2018
  • Bajaj Allianz Car Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    I have a car insurance policy from the Bajaj Allainz . I am paying a premium of 18000 per year. I have claimed this policy once and the claim experience was really good. It has been a good experience with the policy and their services.
    Was this review helpful? 2
    , thane
    Reviewed on Sep 26, 2018
  • Bajaj Allianz Car Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    My car is insured with the Bajaj Allianz general Insurance. I am paying a premium of 8000 rupees per year. So far there hasn't been any claim experience with the policy. I haven't faced any issues with their services.
    Was this review helpful? 2
    , thane
    Reviewed on Sep 26, 2018
  • Bajaj Allianz Car Insurance
    "Best policy"
    0.5 5.0/5 "Blown Away!"
    My car is insured with Bajaj Allianz from last 10 years and it is a good policy to use. I pay a premium of Rs 5000 for this insurance policy. I have claimed this insurance 4 years back and they covered 80% and i am happy with the coverage value of this insurance policy.
    Was this review helpful? 1
    , kolkata
    Reviewed on Sep 06, 2018
  • Bajaj Allianz Car Insurance
    "Good Policy"
    0.5 3.5/5 "Pretty good"
    My car is insured with Bajaj Allianz from last 1 year and it is a good policy to use. I am not aware of the premium amount of this insurance policy. My claim experience was good with this policy and they covered bumper to bumper damage, There was no cashless garage option.
    Was this review helpful? 2
    , hyderabad
    Reviewed on Aug 30, 2018
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