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Page A-093
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With standard insurance, a depreciation rate is applied to determine the payable amount for the damages or repairs during the claim settlement. Here, the difference between the depreciated and market price of new parts is borne by the insured.
Page A-257
What is Zero Depreciation Cover?
Here is why you need it. Under standard insurance, the amount payable for repairs or replacements during a claim settlement is determined by applying a depreciation rate. This means the difference between the market price of the new parts and the depreciated parts has to be borne by the policyholder. However, with zero dep cover for cars, your insurer bears the depreciation cost during claim settlements.