What is Zero Depreciation Cover in Two Wheeler Insurance?
Jul 23, 2020

Zero Depreciation in Bike Insurance

Every vehicle goes through depreciation. In simple terms, depreciation is a reduction in the value of a commodity over a period of time due to wear and tear etc. This applies for your two wheeler as well.

To safeguard you against the reduction in the value of your bike insurance at the time of a claim, a protection from depreciation or a zero depreciation cover is available as an add on, by paying additional premium amount on top of your standard two wheeler insurance policy.

This cover is very useful at the time of filing a claim as it does not take in to account the reduction in the value of your two wheeler occurring due to depreciation. Hence, it provides you with a better claim amount on your loss and helps in savings. For example, if your bike has an accident, you will be provided with an entire claim for your loss and the depreciating value of the bike will not be included.

In most cases of two wheeler insurance claims, it is generally the parts of the bike that are subject to replacement that face the impact of depreciation.

Benefits:

A zero depreciation cover can help you with -

  • Minimizing out of pocket your expenses in a situation of a claim
  • Receiving the actual claim amount, after mandatory deductions
  • Adding more protection to your existing cover
  • Increasing your savings
  • Bidding farewell to apprehensions regarding lower claim amounts

There are always inclusions and exclusions that you must be aware of before getting a zero depreciation cover for new bike insurance online.

Inclusions:

    1. Two wheeler depreciable parts include rubber, nylon, plastic and fiber-glass parts. The zero depreciation cover will include the cost of repair/replacement in claim settlements.

    2. The add-on cover will be valid for up to 2 claims during the policy term.

    3. The zero depreciation cover is specifically outlined for bike/two-wheeler with maximum age of 2 years.

    4. The zero depreciation cover is available for new bikes as well on the renewal of bike insurance policies.

    5. Read the policy documents carefully as this cover is available for designated two wheeler models only.

Exclusions:

    1. Remuneration due to uninsured peril.

    2. Damaged caused due to mechanical slip-up.

    3. Damaged caused because of common wear and tear as a result of ageing.

    4. Compensation on damage of uninsured bike items like bi-fuel kit, tyres and gas kits.

    5. The add-on cover does not cover the cost if the vehicle is completely damaged/lost.

Conclusion

A standard two wheeler insurance policy is more beneficial if you add the zero deprecation cover. This gives you a worry-free claim process and does not imbalance your planned budget. Drive smart and get the best insurance features after two wheeler insurance policy comparison online

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