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Cholamandalam Zero Depreciation Add-on

Network Garages | 7,100+ |
Emergency Assistance | 24x7 Available |
Claim Settlement Ratio | 85.89% in FY20 |
Accreditation | ISO Certification |
Customer Base | 89 Lakh+ |
Presence | 135+ Branches |
Cholamandalam Zero Depreciation Add-on
Every commodity loses value over its age and so does your car. The continuous devaluation of a commodity is known as depreciation. Apart from reducing your car’s market value, depreciation also results in a reduction in the insurance claim amount of your car. This is because at the time of a claim, the insurer factors the depreciation cost in the claim amount.
Thus, even if your car is only 3-4 years old, your car will be valued at a price 25% less than the invoice price due to depreciation and you will receive a relatively lower claim amount. However, you can do away with the burden of bearing depreciation cost by purchasing the Cholamandalam Zero Depreciation add-on.
The zero depreciation add-on cover can only be availed with a comprehensive car insurance plan.
Cholamandalam Zero Depreciation Add-on Benefits
Higher Claim Amount: The zero depreciation add-on cover exempts the policyholder from bearing the cost of depreciation. It makes the insurer liable to pay for the applicable depreciation. Thus, the policyholder is able to get a higher claim amount.
Multiple Claims Even For Aged Vehicles: The policyholder can file 2 claims during the tenure of a policy. Also, the cover is available for cars up to 5 years of age. Both these things mean that all new car owners can make a total of 10 claims in a span of 5 years, if opted for 1-year tenure policy.
Depreciation Rate Applicable on Car Without Zero Depreciation Cover
Age of Car | Rate of Depreciation |
Under 6 months | Nil |
6 months to 1 year | 5% |
1-2 years | 10% |
2-3 years | 15% |
3-4 years | 25% |
4-5 years | 35% |
5-10 years | 40% |
Above 10 years | 50% |
Depreciation Rate Applicable on Different Parts of Car Without Zero Depreciation Cover
Part of Car | Depreciation Rate |
Paint work / Rubber / nylon / plastic parts, tires and tubes, batteries and airbags parts | 50% |
Fibre glass parts | 30% |
Glass parts | Nil |
Conditions for Zero Depreciation Add-on Cover
- A maximum of two claims are permissible during the policy period for vehicles aged not more than 5 years.
- The company will bear a maximum liability of Rs 20,000 per part to be replaced for vehicles with age not more than 5 years.
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Cholamandalam Zero Depreciation Cover FAQs
How much the Cholamandalam zero depreciation add-on costs?
The cost of zero depreciation add-on cover depends on the sum insured and the age of the car. Also, irrespective of the cost, the company is liable to pay only a maximum of Rs 20,000 per part for cars not older than 5 years.Is the zero depreciation add-on cover applicable in case of total loss/theft of the insured vehicle?
No, the zero depreciation add-on cover is not applicable in case of total loss/theft of the insured vehicle. You must have the Invoice Cover add-on to get full showroom price of the vehicle in case of total loss or theft.Are engine parts covered the zero depreciation add-on?
No, the zero depreciation add-on cover does not offer protection for engine damage. To safeguard your car’s engine against losses/damages, you need to opt for the Engine Cover add-on.


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Contact Details
Cholamandalam Contact Details
(Toll-free) 1800-103-5354, 1800-209-5354(24*7)