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​Automobile Desk – As soon as we buy a new car, the first thing we do is to arrange for its safety and for this we definitely take 'Zero Depreciation' add-on along with comprehensive motor insurance. The biggest advantage of this cover is that in case of an accident, you do not have to pay out of pocket for replacement of plastic, fiber or metal parts. But often people have this misconception that after taking zero depreciation cover, they can get as many claims passed as many times as they want in a year. If you also think the same, then improve your perception a little.

​Every company has its own different terms and conditions in the car or bike insurance market. In simple terms, most insurance companies approve only a maximum of 2 claims under the Zero Depreciation Add-on during a policy year. That means, if your car meets with an accident for the third time in a year, you will get a claim as per normal insurance and will have to bear the cost of depreciation from your own pocket.

​However, this scope is not limited to just two claims. According to insurance experts, there are companies in the market that allow only 1 claim in a year, while some companies provide the facility of 2 or more claims. In some premium plans, companies give customers the option to take claims more frequently, but there is a simple condition for this – the burden of extra premium on your pocket.

​If you want to add unlimited or high claim facility to your policy, the insurance company will charge you a higher premium than a simple zero dep cover. Companies decide their charges according to the risk, so if the number of claims increases, the price of the policy will also automatically increase.

​Many people immediately file Zero Dep Claim even if there are minor scratches or minor dents. According to experts, this is a big mistake. Encashing claims for minor damages exhausts your limit. Apart from this, the 'No Claim Bonus' (NCB) received for the next year is also lost. Therefore, it is wise to bear the small expenses yourself and save the claims for bigger losses.

Whenever you renew an insurance policy or take a new cover for a new or old vehicle, do not make the decision just by looking at the premium amount. Ask the policy agent or company representative clearly what is the limit for zero depreciation claim in that policy period. It is always beneficial to read the 'Terms and Conditions' section of the policy document carefully to avoid any confusion later on.