When you file a car insurance claim, depreciation on vehicle parts can significantly reduce your payout. This is where the ICICI Lombard Zero Depreciation Add-On Cover becomes a game-changer. It ensures you receive the maximum claim amount without any deduction for depreciation.
With over 15 years of experience in the insurance industry and having written 10,000+ blogs, I’ll break down everything you need to know about ICICI Lombard zero depreciation cover – from benefits and cost to real claim advantages – following EEAT (Experience, Expertise, Authority, Trustworthiness) principles for credibility.
What is Zero Depreciation Cover?
Zero depreciation (also called bumper-to-bumper insurance) is an add-on that allows you to:
- Get full claim amount
- Avoid depreciation deductions
- Save out-of-pocket expenses
Normally, insurers deduct depreciation on parts like:
- Plastic parts – 50%
- Rubber & nylon parts – 50%
- Fiberglass components – 30%
- Metal parts – 5% to 50% (based on age)
With zero depreciation cover, no depreciation is applied, resulting in a higher claim settlement.
Why Choose ICICI Lombard Zero Depreciation Add-On?
ICICI Lombard offers one of the most customer-friendly zero-dep plans in India:
- Higher claim payout
- Ideal for new and luxury cars
- Transparent policy terms
- Available with comprehensive & own damage policies
- Hassle-free claims
- Digital purchase & renewal
Key Benefits of ICICI Lombard Zero Depreciation Cover
1. Maximum Claim Amount
- No deduction on replaced parts
- Full repair cost covered
2. Peace of Mind
- No surprise expenses during claim
- Financial security
3. Best for New Cars
- Perfect for cars up to 5 years old
- Protects high-value parts
4. Suitable for Urban Driving
- Ideal for traffic-heavy cities
- Covers frequent minor damages
5. Faster Claim Settlement
- Simplified processing
- Less dispute over deductions
How Does Zero Depreciation Work?
· Without Zero Dep Cover
Claim Amount = Repair cost – Depreciation – Deductibles
· With Zero Dep Cover
Claim Amount = Repair cost – Deductibles
Result:
You save thousands on every claim.
Eligibility Criteria
- You can opt for zero depreciation if:
- Your car is less than 5 years old
- You have a comprehensive or your own damage policy
- Vehicle passes inspection (if required)
- No previous major damage
ICICI Lombard Zero Depreciation Cost
The cost depends on:
- Car model
- Vehicle age
- City of registration
- Claim history
- Engine capacity
Approx Cost Range
- ₹800 to ₹5,000 annually
- Luxury cars may cost more
Pro Tip:
Paying a little extra premium today can save you huge repair costs tomorrow.
Claim Advantages of Zero Depreciation Cover
- Higher settlement amount
- No depreciation deductions
- Lower out-of-pocket expenses
- Faster approval
- No disputes over parts
What’s Covered Under Zero Dep Add-On?
- Plastic & rubber parts
- Fiberglass components
- Metal parts
- Paintwork
- Bumpers
- Headlights & mirrors
What’s NOT Covered?
- Normal wear & tear
- Engine oil, fuel
- Mechanical breakdown
- Claims beyond limit (usually 2 per year)
- Consequential losses
How to Add Zero Depreciation Cover?
While Buying Policy
- Select an add-on during purchase
- Pay an additional premium
During Renewal
- Add while renewing your policy
- Subject to eligibility
Who Should Buy Zero Depreciation Cover?
- New car owners
- Luxury car owners
- Frequent drivers
- People living in traffic-heavy cities
- Owners with expensive spare parts
Zero Depreciation vs Normal Policy
1. Depreciation
- Normal Policy:
a) Depreciation is deducted from car parts during claim settlement.
b) This reduces the final claim amount. - Zero Depreciation Cover:
a) No depreciation deduction on replaced parts.
b) You receive a higher claim payout.
2. Claim Payout
- Normal Policy:
The claim amount is lower due to depreciation deductions.
You bear a significant portion of the repair cost. - Zero Depreciation Cover:
Claim payout is higher as the insurer covers the full cost of parts.
Minimal financial burden on you.
3. Out-of-Pocket Cost
- Normal Policy:
You pay more from your pocket due to depreciation.
Unexpected repair bills. - Zero Depreciation Cover:
You pay very little (only deductibles).
Saves thousands during claims.
4. Premium
- Normal Policy:
Premium is lower since coverage is basic.
Budget-friendly option. - Zero Depreciation Cover:
Premium is slightly higher.
But offers better claim benefits and peace of mind.
Why ICICI Lombard is Trusted?
- 20+ years in insurance
- Backed by ICICI Group
- 3+ crore customers
- Strong claim settlement ratio
- Digital-first approach
Frequently Asked Questions (FAQs)
Q1. Is zero depreciation worth it?
Yes, especially for new cars and premium vehicles.
Q2. How many claims can I make?
Usually up to 2 claims per policy year (subject to terms).
Q3. Can I buy ICICI Lombard zero dep cover from SquareInsurance?
Yes, you can easily buy an ICICI Lombard zero depreciation add-on through squareinsurance, ensuring expert guidance and best pricing.
Q4. Does zero dep cover include engine damage?
No, you need an engine protect add-on.
Q5. Can I add this cover mid-term?
Generally available during renewal.
Expert Insight (EEAT Perspective)
In my 15+ years of experience, I’ve seen policyholders regret not opting for zero depreciation cover after claim deductions. ICICI Lombard’s zero-dep add-on is one of the most valuable riders if you want to avoid financial shock during repairs.
Conclusion
ICICI Lombard Zero Depreciation Add-On Cover offers:
- Higher claim payout
- Financial security
- Peace of mind
- Best protection for new cars
For a small additional premium, you can save thousands during claims, making it a smart investment.
Note:
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