Difference Between Comprehensive and Zero Depreciation Bike Insurance Policy

Comprehensive Insurance + Zero Depreciation Bike Insurance = 100% Peace of Mind.

When you buy a two-wheeler, you need to get insurance for it too. The Indian Motor Tariff has made it compulsory for all motor vehicles (bike, car, truck, etc.) to have at least a Third Party insurance cover for your bike. It is a basic insurance cover, also known as liability only insurance, designed to offer coverage to the third party in case of any bodily injury or property damage caused to them due to an accident involving your bike.

The Third Party coverage protects you against the liabilities towards a third party only, therefore, people opt for Own Damage insurance cover to secure their bikes. A Third Party Liability Insurance and Own Damage Cover together form a Comprehensive Bike Insurance Policy.

Here is an explanation to enhance your understanding of the Comprehensive Insurance Cover vs Zero Depreciation Cover for bike.

What is Comprehensive Two Wheeler Insurance Cover?

As the name implies, Comprehensive Insurance can be understood as a complete package for bike insurance. It incorporates the cover for the damage incurred by a third party as well as damage incurred by your bike in the event of an accident or any other unfortunate event involving your bike.

When is a Comprehensive Bike Insurance Cover Applicable?

A comprehensive bike insurance plan is applicable in the following scenarios:

  • Theft of bike
  • Road accident
  • Riots or strikes
  • Fire or explosion
  • Terrorist activities
  • Damage while traveling by air, rail, road, water
  • Natural calamities like earthquakes, floods, cyclones, etc.

Exclusions of Comprehensive Bike Insurance Cover

A comprehensive bike insurance plan is not applicable in the following situations:

  • Coverage is not applicable after the policy expires
  • Consequential damages are not entitled to get the coverage
  • No coverage if driving is done under the influence of alcohol or drugs
  • If the private vehicle is used for commercial purpose or any malicious activities

The comprehensive cover doesn’t shield your bike completely as despite the cover, your bike is subject to depreciation. Depreciation refers to the loss in value of your bike due to wear and tear with time. This depreciation charge is by default deductible from your claim amount at the time of claim settlement.

However, you can do away with the depreciation charge by opting for an add-on cover known as Zero Depreciation Cover.

What is Zero Depreciation Two-Wheeler Insurance Cover?

With time, the value of your bike diminishes due to wear and tear. To avoid depreciation lowering your bike insurance claim amount, an add-on cover known as Zero Depreciation Cover can be purchased. This cover is also known as Nil Depreciation Cover or Bumper to Bumper cover.

It is the most selling add-on cover as it secures the depreciation amount of your claim. Generally, it is available for bikes up to 5 years of age. However, the eligibility criteria varies from insurer to insurer. With this cover, all the parts of your bike will be insured by 100% except tubes, tyres, & batteries which will be covered at 50%.

Though, paying a bit higher premium for this add-on can help you gain an increased claim amount as automated depreciation applicable would go ineffective and most of the parts will be covered with 100%.

Difference Between Comprehensive vs Zero Depreciation Bike Insurance Policy


Comprehensive Policy

Comprehensive Policy + Zero Depreciation Cover

Premium Amount

Premium will be normal

Premium will be higher

Depreciation Rates

With the age of the bike, the increasing depreciation rate will be applied on the bike and claim amount will be reduced

The depreciation rates will not be applicable on the bike and the claim amount will automatically get increased

Claim Settlement Amount

Lower claim settlement amount as depreciation is applied on some body parts

Higher claim settlement amount as depreciation rates are considered as nil

Also Read

IRDAI Withdraws Sale of Comprehensive Motor Insurance Policy

All About Bike Insurance Zero Depreciation Cover


Nowadays, motor insurance companies offer several plans to secure your bike from various risks. A good amount of coverage can be acquired with comprehensive insurance coverage. But, to get a complete protection cover for your vehicle and acquire the maximum claim amount, zero depreciation cover is a must.

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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