Car insurance is a mandatory requirement. The reason why you buy a motor insurance policy is to avail the financial benefits in case of an unfortunate circumstance such as an accident causing damage to you or your vehicle. Sometimes car insurance companies reject claims due to some of the faults from your side. So before you file a claim with your motor insurance providers, you must keep in mind a number of terms regarding your policy. Keeping these terms on mind will help you file a smooth claim making it certain that your claim gets accepted.
Zero Depreciation Cover
Depreciation in car insurance stands for the concept of lowering your vehicle’s value due to use or tear or wear. Zero Depreciation Cover is also known as ‘Zero Dep’ policy which gives your car total coverage without factoring in depreciation. Zero Depreciation Cover is generally an add-on cover for which you will have to pay extra on your car insurance premium. Having Zero Depreciation Cover for your car insurance means you will receive the total cost from your insurance provider when you file a claim in case your vehicle gets damaged due to collision or accident.
Insured Declared Value (IDV)
IDV is one of the most commonly used car insurance terms which stand for Insured Declared Value. IDV is the maximum amount payable by your insurer on your vehicle in case of theft, repair or total loss of your vehicle. Your car’s IDV is calculated on the basis of the manufacturer’s listed selling price from which the depreciation cost is subtracted. The IDV for the accessories that are not factory fitted is separately calculated if insurance is needed for those parts. In short, IDV stands for the market price of your vehicle and the same amount of your IDV will be paid to the policyholder by the insurer as compensation in case of damages.
Own Damage Coverage/Own Damage Premium
As the name suggests, Own Damage Coverage stands for the coverage of your own vehicle in case of damage due to an accident. Own Damage Premium is the insurance premium payable by a policyholder for availing insurance coverage equal to the IDV. If you pay for Own Damage Premium then you are automatically entitled you to claim compensation, in the event where your case your vehicle gets stolen or damaged due to an accident.
No Claim Bonus (NCB)
NCB or No Claim Bonus is an additional discount offered by various car insurance companies to their policyholder for making no claims during a policy term. The No Claim Bonus discount is used for lowering your premium at the time of your car insurance renewal.
Personal Accident Cover
This is a very important coverage that should be opted for while buying car insurance online. As suggested by its name, Personal Accident Cover shields you from any unforeseen circumstances which may cause bodily hard like Accidental Death or Permanent Total Disability result from an accident.
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