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 the 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 comprehensive or 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 the 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 add-on during purchase
- Pay 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 on 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:
The premium is lower since coverage is basic.
Budget-friendly option. - Zero Depreciation Cover:
Premium is slightly higher.
But it offers better claim benefits and peace of mind.
Why Is ICICI Lombard 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 Square Insurance?
Yes, you can easily buy the ICICI Lombard zero depreciation add-on through squareinsurance, ensuring expert guidance and the best pricing.
Q4. Does zero dep cover include engine damage?
No, you need the 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:
Download our app "Square Insurance POS – Apps on Google Play" to compare policies, manage renewals, track commissions, and grow your insurance business digitally.
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