Zero depreciation
A motor add-on that stops the insurer deducting depreciation on replaced parts in a claim.
Zero depreciation is an add-on to own-damage cover. Normally the insurer deducts depreciation on parts it replaces after an accident, so you pay part of the bill. With zero depreciation, that deduction goes away. IRDAI’s 2024 rules also say insurers can’t apply depreciation to non-original parts used in repairs. See motor insurance explained.
Questions people ask
What is zero depreciation cover?
An add-on to own-damage motor insurance. On a normal claim, the insurer deducts depreciation on parts it replaces, so you pay part of the bill. Zero depreciation removes that deduction, so the claim pays closer to the full repair cost.
Is zero depreciation worth it?
It costs extra premium, and it matters most on newer vehicles with costly parts. IRDAI's rules require the premium for each add-on to be shown separately, so you can see exactly what this one costs before deciding.
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