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 an 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 into 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.

What is Zero Depreciation Bike Insurance?

Zero depreciation bike insurance is an add-on cover that ensures the depreciation value of the bike parts is not deducted from the claim amount. If your bike gets damaged following an accident, the insurance will cover the full cost of the part replacement without any depreciation deduction, ensuring you receive the maximum claim amount. Ideal for new bike owners, zero dep insurance for bike shields you from the extra costs of replacing parts as the bike ages.

When Should You Opt for a Zero Depreciation Cover?

Opting for zero depreciation cover is highly recommended for new bike owners, high-end bikes, and bikes prone to damage. It's particularly beneficial during the first few years of a bike's life when parts are more costly and depreciation rates are higher. This cover is best suited for those who want peace of mind knowing that they won't face significant out-of-pocket expenses for replacements in the unfortunate event of an accident.

Will Your Premium Increase After Availing a Zero Depreciation Cover?

Yes, choosing zero depreciation bike insurance will increase your premium amount. Since the depreciation cost is waived off, a higher premium is charged for this cover. The premium increase provides a balance for the insurer, offsetting the risk of potentially higher claim payouts. Many find it a trade-off worthwhile for the added financial protection it offers against the wear and tear of bike parts.

Standard Bike Insurance Vs Zero Depreciation Bike Insurance

Feature	Standard Bike Insurance	Zero Depreciation Bike Insurance
Depreciation Factor	Applies	No depreciation deducted
Cost of Premium	Lower	Higher
Claim Settlement Amount	Less, due to depreciation	Higher, as depreciation is waived
Recommended for	Older bikes, less frequent users	New bikes, frequent riders

                   

Factors to Keep in Mind Before Choosing Zero Depreciation Cover

When considering zero depreciation cover, assess your bike's age, riding frequency, and where you ride. This cover suits new bikes and those riding in high-traffic areas where minor accidents are more likely. Also, check the number of claims allowed per year, as some policies may limit the number of zero dep claims. Understanding these factors will help you maximize the benefits of your zero depreciation insurance for your bike policy.

Benefits of Zero Depreciation Cover

A zero depreciation cover can help you with -

1. Minimizing out of pocket your expenses in a situation of a claim
2. Receiving the actual claim amount, after mandatory deductions
3. Adding more protection to your existing cover
4. Increasing your savings
5. 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 of Zero Depreciation Cover

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 5 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 of Zero Depreciation Cover

1. Remuneration due to uninsured peril. 2. Damage caused due to mechanical slip-up. 3. Damage 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. However, the total loss can be covered by the insurance company if the Insured Declared Value (IDV) is sufficient.

Conclusion

A standard two wheeler insurance policy is more beneficial if you add the zero depreciation 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.

Frequently Asked Questions

1. Can one purchase a zero depreciation cover for a third-party insurance cover? 

No, zero depreciation cover cannot be purchased with third-party insurance as it only applies to comprehensive bike insurance policies which cover both third-party liabilities and own-damage.

2. How many times can a zero depreciation claim be made? 

Insurers typically limit the number of zero depreciation claims a policyholder can make in a policy term. Allowing two claims per year is common, but this can vary, so check your policy details.

3. Should I buy a zero depreciation add-on if my bike is 6 years old? 

Purchasing a zero depreciation add-on for a bike that is 6 years old may not be cost-effective, as these covers are generally more beneficial for newer bikes.

4. Is the zero-depreciation add-on useful for a new bike owner?

Yes, the zero-depreciation add-on is highly useful for new bike owners as it ensures that depreciation is not deducted from the claim amount, making it ideal for maintaining financial protection against new parts replacement costs.

5. Is the zero-depreciation cover for bike insurance useful for an old bike owner?

Zero-depreciation cover tends to be less beneficial for older bikes, as the cost might outweigh the benefits due to higher premiums and the limited availability of such covers for older models.

6. I am buying a three-year-old secondhand bike. Should I opt for the zero-dep cover? 

Yes, opting for zero depreciation cover can be beneficial for a three-year-old bike as it will help cover the costs without the depreciation factor, especially if the bike is in good condition and the premium fits your budget.   *Standard T&C Apply *Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.