Zero Depreciation Add-on In Bike Insurance
Depreciation is a natural phenomenon that reduces the value of an asset over time. Just like every other asset, the value of a two-wheeler also diminishes with time. By default, the responsibility to bear the depreciation cost amount rests with the owner and not the insurance company. Therefore, at the time of claim settlement, the insurer deducts the cost of depreciation incurred by the insured’s two-wheeler from the claim amount. This makes the policyholder get a lesser amount of compensation from the insurer. However, a policyholder can shift the burden of bearing the cost of depreciation from himself/herself to the insurance company with the help of a zero depreciation cover.
What is Zero Depreciation Bike Insurance?
A zero depreciation add-on cover, also known as nil depreciation and bumper-to-bumper cover, is a popular two-wheeler insurance add-on cover. It can be opted with a comprehensive as well as a standalone own-damage two-wheeler insurance policy. It provides 100% depreciation coverage for all the parts of your two-wheeler except tyres, tubes and batteries which are covered at 50%. Most Insurance companies allow 2 zero depreciation claims during the tenure of a policy, however, there are some exceptions like IFFCO Tokio General Insurance, Royal Sundaram General Insurance Company, New India Assurance Company which allow unlimited number of zero depreciation claims during the tenure of a policy.
Zero Depreciation Bike Insurance Add- on Cover should ideally be opted by the following:
- New two-wheeler owners
- People who have luxury two-wheeler which have expensive parts
- People living in accident-prone areas
- New drivers
What is your bike's brand?
Zero Depreciation Bike Insurance Cover vs Normal Bike Insurance
Age of two-wheeler
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 two-wheeler
Rate of Depreciation Without Zero Depreciation
Rate of Depreciation With Zero Depreciation
Rubber/nylon/ plastic parts
Fibre glass parts
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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Zero Depreciation Two Wheeler Insurance FAQ
What is a zero depreciation cover in bike insurance?
A zero depreciation cover for bikes is an add-on cover (extra coverage) which insures you against the depreciation charges incurred by your bike. By default, the liability for depreciation charges fall on the bike owner and thus the same is deducted from the claim amount at the time of claim settlement. However, if you opt for a zero depreciation cover, you are 100% exempt from paying the depreciation expense of your bike and all its parts except its tyres, tubes and batteries which are exempt at 50%. A zero depreciation add-on can be opted with a comprehensive bike insurance plan as well as a standalone own-damage bike insurance plan.
What is the best zero depreciation bike insurance in India?
The best insurance company for a bike zero depreciation cover varies from individual to individual as per their requirements and budget. Generally, insurance companies allow up to 2 claims under a zero depreciation cover, however, there are only 3 insurance companies which allow unlimited number of claims namely IFFCO Tokio General Insurance, Royal Sundaram General Insurance and The New India Assurance.
Can I convert third party insurance for my bike into zero depreciation insurance?
No, you cannot convert a third party bike insurance plan into a zero depreciation bike insurance plan. Like all other add-ons, a zero depreciation add-on can be opted with a comprehensive bike insurance plan or a standalone own-damage bike insurance plan.
What will I get covered in zero depreciation of bike insurance?
A bike zero depreciation add-on covers the depreciation expense of your bike and offers compensation for repair and replacement of depreciated parts during the claim settlement process. It will cover the depreciation expense of all the parts of your bike at 100%, except tubes, tyres, & batteries, which are covered at 50%.
Should I buy zero depreciation bike insurance?
Yes, you should buy a zero depreciation bike insurance cover as it insures you against the depreciation cost of your bike against a nominal additional premium amount. Also, this add-on helps you claim a higher amount by saving you from the expense of paying for the depreciation expense.
Is zero depreciation insurance required for bikes?
A zero depreciation bike insurance add-on is not a mandatory requirement but is a recommended add-on. This add-on helps you get a higher claim amount and also saves you from incurring hefty depreciation expenses of your bike.
What is the difference between zero depreciation and comprehensive bike insurance?
A comprehensive bike insurance is a type of bike insurance plan whereas a zero depreciation cover is a bike insurance add-on. A zero depreciation cover can be opted with comprehensive bike insurance plans and standalone own-damage bike insurance plans.
What is not covered by zero depreciation bike insurance?
A zero depreciation cover for bikes does not provide coverage for 50% of depreciation charges incurred by tyres, tubes and batteries of the insured’s bike. Also, damages caused due to mechanical breakdown or to uninsured parts such as bi-fuel kit, and gas kits are excluded from the zero depreciation policy.
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