Property & IRDAI Licensed Insurance Agent in Indore. Expert in Health Gap Analysis. Travel Insurance. Insurance is the subject matter of solicitation.

Difference Between Zero Depreciation & IMT 23

Think of it like entering a movie theater:

IMT 23 is your Entry Ticket (It allows you to enter the theater).
Zero Dep is your Free Popcorn Coupon (It ensures you don't pay extra once you are inside).

If you buy one without the other you will likely lose money during a claim.

Here is the straightforward breakdown:

1. Zero Depreciation (IMT 21)

What it is: A "Value" Cover.
The Problem: Without this, insurance deducts money for "aging" (Depreciation).
- Plastic/Rubber/Nylon parts (Bumpers, Headlights, Airbags): 50% deduction.
- Metal parts: 5% to 50% deduction based on car age.
The Solution: With Zero Dep, the insurance company pays 100% of the part cost, regardless of the vehicle's age.1
Key takeaway: It protects the Amount of the claim.

2. IMT 23 (Parts Cover)

What it is: An "Admissibility" Cover (Specific to Commercial Vehicles).
The Problem: Commercial vehicle policies have a strict exclusion clause. If damage happens ONLY to the Lamps, Tyres, Mudguards, Bonnet, or Bumpers (and the rest of the body is untouched), the surveyor can REJECT the entire claim.
The Solution: IMT 23 overrides this rule. It forces the insurance company to accept the claim even if only the headlight or bumper is broken.
Key takeaway: It protects the Right to Claim.

The "Broken Headlight" Scenario

Imagine a client's Toyota Innova Crysta (Commercial Taxi) hits a pole. Only the Headlight (Cost ₹25,000) is broken. The metal body is fine.

The Verdict by Diversified Solutions:

For your Taxi, Bus, and Rental Fleet (Ertiga, Innova, Traveller), you MUST give both.

If you get only Zero Dep, small bumper/light claims will be rejected.
If you get only IMT 23, claims will be accepted, but you will scream at yourself when you see 50% money cut for depreciation.

Buy the combo.

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