All About Bike Insurance Zero Depreciation Cover

Published On Jun 19, 2020 5:30 AM By InsuranceDekho

Zero Depreciation cover for two-wheeler insurance helps in saving significant amount of cost on replacement and repair of your bike parts.

Two wheeler insurance zero depreciation - Vehicles tend to undergo depreciation with time. It means their value decreases over a period of time due to wear and tear. The same condition applies to bikes. When its worth goes down, it implies a direct downfall in its insurance claim amount.

However, if you don’t want your bike’s claim amount to get reduced, you can opt for a Zero Depreciation Cover.

What is Bike Zero Depreciation Cover?

The Zero Depreciation Cover or Nil Depreciation Cover or Bumper to Bumper is an add-on cover available with standalone own damage and comprehensive bike insurance plans. It keeps your bike’s value protected against depreciation, which is by default deductible during the claim settlement process.

Opting for this add-on cover with your own-damage bike insurance policy or comprehensive plan can help you receive a higher claim amount. To own this add-on cover on the top of the standard bike insurance plan, you just need to pay for an additional amount as premium.

Let’s have a look at the functionality of this add-on to gain a better understanding of it. The table below will exhibit the impact of this Zero Depreciation Cover on the depreciated value of your bike in accordance with its age and parts.

Features of Zero Depreciation Cover

Age of Bike

Depreciation Rate Without Zero Depreciation Cover

Depreciation Rate With Zero Depreciation Cover

Under 6 months

Nil

0%

6 months to 1 year

5%

0%

1-2 years

10%

0%

2-3 years

15%

0%

3-4 years

25%

0%

4-5 years

35%

0%

5-10 years

40%

0%

Above 10 years

50%

0%

Part of Bike

Depreciation Rate Without Zero Depreciation Cover

Depreciation Rate With Zero Depreciation Cover

Paint work / Rubber / Nylon / Plastic parts

50%

0%

Fibre glass parts

30%

0%

Glass parts

Nil

0%

Precisely, this add-on covers the depreciation amount of your bike and offers compensation for repair and replacement of depreciated parts during the claim settlement process. It will cover all the parts of your bike by 100%, except tubes, tyres, & batteries, which are covered at 50%.

Zero Depreciation Cover won’t be applicable in some of the scenarios, which are as follow:

  • Any damage to bike due to any mechanical defect.
  • Compensation for total loss or damage is excluded.
  • The cost incurred on the repair or replacement or depreciation amount of the parts, with no coverage in the policy, will not be compensated.

The zero depreciation cover is the most selling add-on cover. People with a new bike or bikes with costly spare parts generally opt for this cover.

Also Read

IRDAI Withdraws Sale of Comprehensive Motor Insurance Policy

Difference Between Comprehensive and Zero Depreciation Bike Insurance Policy

Take Away

A Zero Depreciation Cover broadens the coverage of your standard bike insurance policy. It compensates the depreciated cost of your bike leading you to receive a higher claim amount. People with new or expensive bikes are the most benefited ones with this cover. The eligibility to avail it in a policy term varies from insurer to insurer. Opt for this add-on cover today and earn an increased claim amount tomorrow.

Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.


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