ICICI Lombard Zero Depreciation Add-On Cover – Benefits, Cost & Claim Impact

Car insurance helps you manage repair costs if your vehicle gets damaged in an accident or due to other unexpected events. However, during a claim, depreciation on parts is often deducted from the final amount. This means you may have to pay a portion of the repair cost from your own pocket. A zero depreciation add-on is designed to reduce this burden. ICICI Lombard Zero Depreciation Add-On Cover helps you receive a higher claim amount by reducing or removing depreciation deductions on certain parts.

This article explains how this add-on works, its benefits, cost factors, and how it affects claims.

What Is a Zero Depreciation Add-On?

A zero depreciation add-on, also known as bumper-to-bumper cover, is an optional cover that can be added to a comprehensive or own damage policy. Normally, when a claim is made, the insurer considers depreciation on parts like plastic, metal, and rubber. With this add-on, depreciation deductions are either reduced or not applied to specific parts as per policy terms.

This means you may receive a higher claim payout for repairs, which can help reduce your out-of-pocket expenses.

How It Works

When your car gets damaged and you file a claim, the repair cost is assessed. Without the add-on, depreciation on replaced parts is deducted before settling the claim. With the zero depreciation add-on, the claim amount is calculated with minimal or no depreciation deduction on covered parts.

This makes a noticeable difference, especially when repairing newer vehicles or replacing expensive parts.

Key Benefits

ICICI Lombard Zero Depreciation Add-On Cover offers several benefits that make it a popular choice among car owners.

·       Higher claim settlement amount

·       Reduced out-of-pocket expenses

·       Better protection for new vehicles

·       Peace of mind during repairs

·       Useful for costly parts replacement

This add-on is especially helpful for those who want maximum coverage for their vehicle.

When Is It Most Useful?

A zero depreciation add-on is often considered useful in the following situations:

·       If your car is new or recently purchased

·       If you drive frequently in busy areas

·       If you want better financial protection during claims

·       If your vehicle has expensive spare parts

Choosing this add-on can help you avoid unexpected costs during repairs.

Cost of the Add-On

The cost of a zero depreciation add-on depends on factors such as:

·       Age and model of the vehicle

·       City of registration

·       Type of policy

·       Insured declared value (IDV)

While the add-on increases the overall premium, many car owners find the extra cost worthwhile because of the higher claim amount they may receive.

Claim Impact

One of the biggest advantages of this add-on is its impact on claims. Without zero depreciation cover, you may have to pay a portion of the repair cost due to depreciation deductions. With the add-on, these deductions are reduced or removed for covered parts.

However, it is important to understand that terms and conditions apply. There may be limits on the number of claims allowed under the add-on during a policy year.

Points to Remember

Before choosing the add-on, keep these points in mind:

·       It is available only with comprehensive or own damage policies

·       It may not apply to very old vehicles

·       Premium may increase slightly

·       Policy terms should be reviewed carefully

Understanding the coverage details helps you decide whether this add-on suits your needs.

Conclusion

ICICI Lombard Zero Depreciation Add-On Cover is a helpful option for car owners who want better financial protection during repairs. Reducing depreciation deductions, it allows you to receive a higher claim amount and lowers your out-of-pocket expenses. While it increases the premium slightly, many drivers choose it for the extra peace of mind it provides. Reviewing your driving needs and vehicle condition can help you decide if this add-on is the right choice for your car insurance policy.

Frequently Asked Questions (FAQs)

Q1. What is the ICICI Lombard Zero Depreciation Add-On Cover?
It is an optional cover that reduces or removes depreciation deductions on certain car parts during a claim. This helps you receive a higher claim amount for repairs.

Q2. With which policy can I buy this add-on?
The zero depreciation add-on is usually available with comprehensive or standalone own damage car insurance policies.

Q3. Is this add-on useful for new cars?
Yes, it is especially useful for new or recently purchased cars because repair and replacement costs can be higher, and this cover helps reduce out-of-pocket expenses.

Q4. Does this add-on increase the premium?
Yes, adding zero depreciation cover may increase the overall premium slightly. However, many car owners choose it for the added financial protection during claims.

Q5. Are there any limits on claims under this add-on?
Some policies may have limits on the number of claims allowed under the zero depreciation add-on in a policy year. It is always good to check the policy terms.

Q6. What parts are covered under zero depreciation?
This add-on usually covers parts like plastic, rubber, fiber, and metal components as per policy terms, reducing depreciation deductions on them.

Q7. Can Square Insurance guide me about zero depreciation cover?
Yes, you can connect with squareinsurance for general guidance on zero depreciation add-on cover, its benefits, and how it affects your car insurance policy.

Note

For easy access to policy information, reminders, and insurance support, you can also use the Square Insurance POS – Apps on Google. The app helps you manage insurance details and stay updated with your policy services in one place.