Similar to other commodities, your car is also subjected to depreciation
this can be because of various reasons such as wear and tear, upgradation of the model, technological advancements, etc.
Under Zero-dep insurance policy, the person gets total coverage without considering the depreciating value of the vehicle.
The depreciation liability falls in the kitty of the vehicle owner if not opted for this kind of policy.
So, at the time of claim settlement, the claim is considered on the depreciated value of the car which eventually lowers the insured declared value.
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