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What Is Zero Depreciation Bike Insurance Add-On Cover And Why You Should Buy It?


Written by Udit Varshney

Updated Aug 09, 2021

Depreciation is a natural process that reduces the value of an asset over time. A two- wheeler value depreciates over time, just like any other asset. By default, the owner is responsible for the depreciation expense sum, not the bike insurance company.

A zero depreciation two-wheeler insurance, also known as nil depreciation and bumper-to-bumper cover, is a common add-on cover for two-wheeler insurance. It can choose between a comprehensive and a standalone own-damage two-wheeler insurance policy. Except for tyres, tubes, and batteries, which are covered at 50%, it offers 100 percent depreciation coverage for all parts of your two-wheeler.

What Is Zero Depreciation Bike Insurance Add-On Cover And Why You Should Buy It?

What Is Zero Depreciation Bike Insurance Add-On Cover And Why You Should Buy It?

Most bike insurance companies make two zero depreciation claims during the policy's tenure; however, some exceptions exist, such which allow an unlimited number of zero depreciation claims during the policy's tenure.

Advantages of a Zero Depreciation Add on Bike Insurance Policy

You will get the following benefits if you choose zero depreciation add on bike insurance:

  • You will receive the actual claim amount after all mandatory deductions have been made.
  • It reduces out-of-pocket costs at the time of claim.
  • An extension of your current policy's coverage
  • It enables you to save more money.
  • You don't have to be concerned with lower claim numbers.
  • One of the best add-on features is zero depreciation insurance, particularly for people whose bike has expensive spare parts that can cause quite a dent in the event of an accident.

Inclusions under A Two Wheeler Insurance Policy with Zero Depreciation Add on

  • Coverage Compensation for depreciable components such as nylon, rubber, fibreglass, and plastic.
  • At the time of claim settlement, compensation for the cost of replacement and repair
  • Some plans also compensate for partial battery and tyre damage without measuring depreciation.
  • The zero depreciation coverage is available at both the time of purchase and renewal.
  • The number of claims that are allowed under two-wheeler insurance zero depreciation will vary depending on the insurance provider.
  • Read the policy documents carefully since zero depreciation with no excess is only available for some two-wheeler models.

You may also like to read:- Difference Between Comprehensive and Zero Depreciation Bike Insurance Policy

Exclusions Under A Two Wheeler Insurance Policy With Zero Depreciation Add on

  • Uninsured perils of some sort
  • Mechanical flaws resulted in damage.
  • The normal ageing process and wear and tear are not concealed.
  • The car has been completely damaged or destroyed.
  • If uninsured bike components such as tyres, bi-fuel kits, and gas kits are damaged,

Normal Bike Insurance vs. Zero Depreciation Bike Insurance

The following is a direct comparison of a regular insurance policy and a policy with zero dept insurance for bikes:

  • Claim Settlement: The settlement of a claim under a regular bike insurance policy is determined by the age of the vehicle and the depreciation value of the pieces. If you have a bike insurance zero dep policy, however, you get maximum coverage at the time of claim.
  • Premium Cost: While the premium for a policy with two-wheeler insurance zero dep cover is significantly higher than that of a regular policy, it provides significantly better long-term returns.
  • Repair and Plastic Fibre Parts Costs: In most situations, the insured pays for the expense of repair and plastic fibre parts. However, when it comes to a bike insurance zero dep scheme, this is protected by the insurer, lowering the policyholder's costs significantly.
  • Age of the Vehicle: Since the policy term (generally) covers two claims within the policy term, zero dept insurance only covers cars up to a certain age. A standard policy does not take the age of the car into account, so if the vehicle is really old, you will only be able to get a normal policy.

Also Read

Benefits of Zero Depreciation Cover For Bike


A regular two-wheeler insurance policy is more advantageous if you opt for a zero depreciation coverage. Even though the inclusions are very small, they are useful for anyone who has recently purchased two-wheeler insurance. You can use the zero depreciation bike insurance feature twice during the policy period, which is very helpful. It enables you to receive the full benefit of your claim with no complications.

Disclaimer: This article is issued in the 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.



Written by Udit Varshney

Udit has built B2C segments across various industries and has had significant contributions to the insurance sector. Read More

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