HDFC ERGO Zero Depreciation Cover
Over time, the value of an asset reduces. The decrease in the monetary value of an asset over time is known as depreciation. Like other assets, a bike is also subject to depreciation. By default, the liability to bear the cost of depreciation incurred by a bike lies with the vehicle’s owner and not the insurance company. Thus, at the time of a claim, the insurer deducts the depreciation expenses incurred by the bike from the claim amount. However, a policyholder can shift this liability of bearing the cost of depreciation to the insurer by opting for a zero depreciation add-on cover.
The HDFC Ergo Zero Depreciation can be availed with the HDFC Comprehensive bike insurance policy as well as with the HDFC Standalone Own-damage cover for bikes.
Benefits of HDFC Ergo Zero Depreciation Cover
You can enjoy the following benefits with zero depreciation cover offered by HDFC Ergo General Insurance.
- Helps you get full claim amount- If you opt for this add-on cover, no depreciation expense will be deducted by the insurer at the time of claim settlement and you get full claim amount.
- Unlimited Number of Zero Depreciation Claims Allowed - Most insurance companies allow 2 claims under the zero depreciation add-on, however, HDFC Ergo General Insurance allows its policyholders to make unlimited number of claims under the zero depreciation add-on cover.
Zero Depreciation Insurance v/s Normal Insurance
Age of bike
Rate of Depreciation Without Zero Depreciation cover
Rate of Depreciation With Zero Depreciation cover
Under 6 months
6 months to 1 year
Above 10 years
Part of bike
Rate of Depreciation Without Zero Depreciation
Rate of Depreciation With Zero Depreciation
Rubber/nylon/ plastic parts
Fibre glass parts
HDFC Ergo Zero Depreciation Cover Conditions
There are certain conditions set by the insurer to avail the zero depreciation cover.
- You can opt for the zero depreciation add-on only if the bike you are insuring is not more than 5 years old.
- You cannot avail zero depreciation cover if the bike is completely damaged or stolen.
HDFC ERGO Bike Insurance User Reviews
HDFC Ergo Zero Depreciation Cover FAQs
How many times can I claim under the zero depreciation cover of HDFC Ergo comprehensive policy?
HDFC Ergo General Insurance allows its customers to make unlimited claims against a zero depreciation cover.
Is it wise to take a zero depreciation cover?
A zero depreciation cover helps you to save a lot of money that you have to bear for the normal wear and tear of the bike. Moreover, when you make a claim, the insurance company will reimburse the claim amount without any deduction for depreciation. The insurer compensates for repair or replacement of bike parts made of plastic, rubber, fibreglass and nylon without any depreciation charge. Hence, the purchase of a zero depreciation cover is definitely a wise decision.
When can I buy zero depreciation add on?
You can buy the HDFC zero depreciation cover at the time of buying/renewing an HDFC Comprehensive bike insurance policy and HDFC Standalone Own-damage cover for bikes.
Does the HDFC Ergo Zero Depreciation cover total loss?
No, the HDFC Ergo Zero Depreciation does not provide coverage for total loss of the bikes. This policy does not include the case of total damage as well.
Can I avail Zero Depreciation coverage for rubber and plastic parts?
Yes, you can avail Zero Depreciation cover for the rubber and plastic parts of your bike. The insurer will bear the expense of repairing and replacing the parts made of rubber and plastics. Without the Zero Depreciation added to your policy, you will have to pay 50% as depreciation charge for rubber and plastic parts.