Zero Depreciation Cover: Meaning, Example and How It Works in India

What does Zero Depreciation Cover mean?

Zero Depreciation Cover, popularly called Zero Dep or Bumper to Bumper, is an add-on that waives the standard depreciation deductions on replaced parts during an Own Damage claim. With this add-on, the provider pays the full cost of the part minus the deductible, without depreciation cuts.

For most Indian car owners, knowing Zero Depreciation Cover matters at the moment of buying a policy or filing a claim. The term shows up on the policy schedule, on the claim form and on the renewal proposal, often in fine print that first-time buyers do not notice until something goes wrong.

HiZuno publishes this glossary so that customers and small-business owners can decode the language of motor insurance in plain English. As of 2026, every entry reflects current IRDAI and MoRTH rules and the prevailing practice across providers in India.

How Zero Depreciation Cover applies in India

Indian providers offer Zero Dep for cars typically up to 5 years of age, some extending to 7 years. Premium adds roughly 10% to 20% on the base OD premium. Most providers permit a defined number of Zero Dep claims per policy year, typically 2 to unlimited depending on the variant.

A real-world example

A Bangalore owner's claim for a Rs 25,000 plastic bumper would normally have 50% depreciation deducted, paying only Rs 12,500. With Zero Dep, the provider pays the full Rs 25,000 minus the Rs 1,000 deductible, saving the owner Rs 12,500.

Common misconceptions

Why Zero Depreciation Cover matters for the consumer

For cars under 5 years, Zero Dep typically pays for itself in a single major claim. It is one of the highest-ROI add-ons in Indian motor insurance.

How to handle Zero Depreciation Cover in practice

A simple, repeatable approach helps you stay in control whenever Zero Depreciation Cover shows up in your policy paperwork or claim conversation.

• Confirm the basics: verify that Zero Depreciation Cover is reflected correctly on the policy schedule before you pay premium.
• Cross-check with IRDAI norms: the regulator publishes the framework that governs Zero Depreciation Cover, so compare what your provider has filed.
• Read the policy wording: the binding contract spells out limits, exclusions and conditions in detail beyond the marketing summary.
• Document everything: keep digital copies of the policy, RC, driving licence and KYC, since most disputes turn on documentation.
• Ask before you assume: a 60-second call to the provider clarifies whether Zero Depreciation Cover applies to your specific situation.

Related glossary terms

Frequently asked questions about Zero Depreciation Cover