Update: May 13, 2022 10:37 a.m. STI
Bombay (Maharashtra) [India]May 13 (ANI/NewsView): Since the Motor Vehicle Act made it mandatory for car owners to have a car insurance policy, insurers have provided a diverse range of car insurance products that protect the insured against the financial shock that follows in the event of accidental repairs.
Zero amortization is one such top-up coverage that provides comprehensive coverage.
With the increase in road accidents and the increase in sales of luxury or sports cars, it is recommended to choose an insurance policy that offers comprehensive coverage. Zero amortization top-up coverage in auto insurance ensures full coverage, negating the impact of amortization.
Depreciation is the devaluation of an asset’s value due to natural wear and tear, use, and obsolescence. Besides the engine and moving parts, other parts of a vehicle are also subject to depreciation, such as plastic and metal. Depending on the age of the car, the accumulation of depreciation varies from 5% for 0 to 6 months to 50% for vehicles over 10 years old.
When an accident occurs, insurers pay for the replacement of parts affected by the accident after deduction of depreciation. In such cases, the insured must pay the difference between the value of the new part and the depreciated value. However, if one has a zero depreciation top-up cover, which can be used for a nominal premium, the insured can receive the full amount of damaged parts regardless of the amount of depreciation.
“Car insurance is not an expense but an investment. The greater the investment, the greater the rewards one can enjoy. At Raheja QBE GI, customer satisfaction has always been our priority and we believe that ‘providing a superior customer experience is important. Zero amortization is such an add-on cover that provides full coverage, negating the impact of depreciation, so choosing such coverage is highly recommended,’ adds Pankaj Arora , MD and CEO, Raheja QBE General Insurance.
Extensive Zero Amortization top-up coverage offers many benefits, some of which are improved coverage, reduced policyholder expenses and peace of mind. These factors free the policyholder from worrying about costly repairs while enjoying ownership of their car.
Zero amortization top-up coverage can be added to your existing car insurance policy and can also be chosen when purchasing a new insurance policy.
Raheja QBE is a joint venture between Rajan Raheja Group and QBE Insurance, Australia’s second largest global insurer. Raheja QBE was established to assist and create the most conducive environment for consumers and partners in the insurance industry. While Rajan Raheja Group brings its deep knowledge across various business sectors in India, QBE Insurance offers global insurance expertise which together results in innovative insurance solutions for diverse consumers.
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