Simple. In regular covers, when you claim insurance for any damage or repair, the insurance company would deduct some amount and make you pay for it. Wondered why. That’s what they call “Depreciation charges”.So, you had a claim of 20,000 rupees but the insurance company paid only 15000 to the garage and you had to pay the balance. The balance 5000 is called Depreciation charges. If you had taken a Zero Depreciation cover, the insurance company would have paid the entire amount of 20,000 rupees.