Zero Depreciation Explained , Glossary Entry
Zero Depreciation is the single most popular add-on in Indian motor insurance. It buys back the depreciation cuts that standard cover applies to every claim. For newer cars, it almost always pays for itself.
Quick Definition of Zero Depreciation
This definition is the short answer voice assistants and AI search engines pull. Below, we unpack what it means for an Indian car owner.
Why Zero Depreciation Matters for Indian Car Owners
On Indian roads, where minor scrapes are frequent in dense parking and narrow lanes, Zero Depreciation turns a Rs 18,000 bumper claim from a Rs 9,000 cheque into close to a Rs 17,000 cheque.
- Waives depreciation cuts: Part replacement is paid at full cost.
- Especially valuable on plastic parts: Plastic parts otherwise depreciate at 50% from day one.
- Pays for itself quickly: One small claim often recovers the add-on cost.
- Available for newer cars: Usually offered up to year five of car age.
- Some claim caps apply: Most plans cap Zero Dep at two claims per year.
Without Zero Depreciation, a Rs 25,000 side panel claim can settle as low as Rs 12,000 to Rs 14,000 after standard depreciation, paint material cuts, and the compulsory deductible.
How Zero Depreciation Is Calculated or Applied
The math is simple: workshop bill minus deductibles. Standard depreciation no longer eats into the payout.
| Repair item | Standard claim payout | With Zero Dep* |
|---|---|---|
| Rs 18,000 bumper | Rs 8,500 approx | Rs 16,800 approx |
| Rs 25,000 side panel | Rs 13,000 approx | Rs 23,800 approx |
| Rs 40,000 multi-part repair | Rs 22,000 approx | Rs 38,500 approx |
| Rs 60,000 major repair | Rs 32,000 approx | Rs 57,000 approx |
Indian Motor Tariff allows depreciation of up to 50% on plastic and rubber parts. Zero Dep bridges exactly that gap.
How to Use Zero Depreciation in Your Policy
Here is the simple five-step way to put this concept to work when you buy or renew your car cover online.
- Visit hizuno.com/car-insurance and quote your policy with and without Zero Dep.
- Compare the premium load against typical repair bills in your city.
- Add Zero Dep for cars under five years old where claim risk is meaningful.
- Pay the premium online and download the policy showing Zero Dep on the schedule.
- Use Zero Dep claims wisely, mindful of the per-year cap stated in the policy.
Common Scenarios Where Zero Depreciation Comes Up
Three Indian situations where Zero Dep paid for itself in one claim.
Parking dent on a Hyderabad layout road
Bumper and fender repair came to Rs 22,000. Without Zero Dep, the payout would have been around Rs 11,000. With Zero Dep, the payout was close to Rs 21,000.
Monsoon damage in Mumbai
Water damage to interior panels and electricals resulted in a Rs 38,000 claim. Zero Dep added roughly Rs 14,000 to the standard payout.
New car small accident in Delhi NCR
First-year owner with a brand-new SUV faced a Rs 28,000 repair bill. Zero Dep brought the cheque close to the full repair cost, saving more than 12 months of the add-on premium.
Cost Impact of Zero Depreciation
Zero Dep adds roughly 15% to 20% to the Own Damage premium. The math becomes clearer when you see year-by-year breakeven.
| Car age | Add-on cost* | Breakeven claim size |
|---|---|---|
| Year 1 | Rs 2,000 to Rs 2,500 | Rs 6,000 to Rs 8,000 |
| Year 2 | Rs 1,800 to Rs 2,200 | Rs 5,500 to Rs 7,000 |
| Year 3 | Rs 1,500 to Rs 2,000 | Rs 5,000 to Rs 6,500 |
| Year 4 | Rs 1,200 to Rs 1,800 | Rs 4,500 to Rs 6,000 |
| Year 5 | Rs 1,000 to Rs 1,500 | Often last year offered |
Most Indian drivers see at least one bumper or fender claim every two years. Zero Dep almost always pays back the cost.
Common Mistakes Indian Car Owners Make
Skipping Zero Depreciation on a brand-new car to save Rs 2,000 in premium. The very first parking dent or paint scratch easily wipes out two to three years of that saving in one go.
- Skipping it on new cars: Highest plastic content and highest claim frequency.
- Misunderstanding claim caps: Two claims per year is standard, plan accordingly.
- Not renewing it consistently: Buying it sporadically defeats the purpose.
- Confusing with bumper-to-bumper warranty: Both names exist for the same add-on.
- Buying it on a 10-year-old car: Many providers do not offer Zero Dep past year five anyway.
Pro Tips for Getting Zero Depreciation Right
Smart Companion tips that save real money and real headaches at renewal time.
- Always pair Zero Dep with Engine Protect for the most common claim gaps.
- Use Zuno’s online tool to compare premium with and without Zero Dep.
- Renew Zero Dep year on year for the first five years of car ownership.
- Read the claim cap clause carefully to know how many claims are covered per year.
- Keep workshop bills and digital photos of damage as supporting documents.
Zero Dep Claim Caps: What to Watch For
Most Indian providers structure Zero Dep with a claim cap to discourage frivolous claims. The cap varies but the most common configurations are below.
| Configuration | Claims allowed | Notes |
|---|---|---|
| Two claims per year | 2 | Most common |
| First claim only | 1 | Lower-cost variant |
| Reset on renewal | Yearly | Counter resets each year |
| Family policy bundle | Shared cap | If multiple cars share add-on |
One Smart Companion habit: read the Zero Dep wording at purchase, not at claim. The cap structure decides whether to claim a small dent now or save the count for a larger event later in the year.
Frequently Asked Questions About Zero Depreciation
From the Telematics and UBI Pillar
- Telematics Car Insurance in India 2026. Pillar hub guide for Telematics.
- Usage-Based Car Insurance in India 2026. Pillar hub guide for UBI.
Sources: Content based on information published by IRDAI, ARAI, MoRTH, Parivahan Sewa, General Insurance Council (GIC), and other relevant regulatory or industry sources, as applicable.
Disclaimer: Premiums and amounts shown are indicative and approximate reference figures only; the actual figure varies with the vehicle's age, No Claim Bonus, geography (RTO zone) and various other parameters. The company offers products under Motor, Health, and Commercial Insurance. For risk factors, terms and conditions, exclusions, and product features, please read the policy wording, sales brochure, and prospectus carefully before concluding a sale. Zuno General Insurance Limited | IRDAI Reg. No. 159 | CIN: U66000MH2016PLC273758 | Registered Office: 2nd Floor, Tower 3, Wing B, Kohinoor City Mall, Kohinoor City, Kirol Road, Kurla (West), Mumbai 400070 | Toll-Free: 1800 12000 | Landline: 022 42312000 (Call charges applicable) | Website: www.hizuno.com | Email: support@hizuno.com.
Section 41 of the Insurance Act, 1938: No person shall allow or offer to allow, directly or indirectly, as an inducement to any person to take out, renew, or continue an insurance policy in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out, renewing, or continuing a policy accept any such rebate.