Kotak Zero Depreciation Add-on

The procedure of reduction of the monetary value of the two-wheeler considering some factors such as the age of the vehicle, regular wear and tear of the vehicle etc is known as depreciation. The policyholder may have to pay a large sum from his/her own pocket at the time of filing a claim for their two-wheeler insurance policy. Due to depreciation deduction, the policyholder may not be able to avail of the full claim amount. A zero depreciation add-on cover can help the policyholder avail the full claim amount in the time of crisis.

The reduction in the value of a bike with time is taken into account by the insurance company at the time of claim settlement. The claim amount is calculated by factoring in the depreciation of the insured’s bike. To avoid this depreciation charge, the policyholders can opt for the Zero Depreciation cover along with the comprehensive policy or the standalone own damage policy. Kotak Zero Depreciation cover helps to prevent the deduction of depreciation charge from the claim amount.

Kotak General Insurance offers Zero Depreciation Cover which can be opted with the comprehensive or standalone own-damage two-wheeler insurance policies. This add-on cover enables the policyholder to receive the full claim amount as no depreciation deductions shall be charged once this add-on cover opts. It even provides repair and replacement of the depreciated parts of the insured’s bike.

Benefits of Kotak Zero Depreciation Add-On Cover

Below mentioned are some benefits of purchasing a Zero Depreciation add-on cover with your two-wheeler comprehensive or standalone own-damage insurance policy:

• Saves Money: Zero depreciation add-on cover may increase the premium of your two-wheeler insurance policy slightly but it does provide added protection. This add-on cover can help the policyholder to save money as this add-on enables the policyholder to receive the maximum claim amount without depreciation deductions.
• Added Protection: The zero depreciation cover adds more protection to the existing two-wheeler insurance policy. This add-on cover ensures that the claim amount is calculated without the depreciation deductions being charged.
• Maximum Claim Amount: The primary objective of purchasing a Zero Depreciation add-on cover with your two-wheeler insurance policy to avail maximum claim amount as with the help of this rider the claim amount shall be calculated without depreciation deduction being charged. This way the policyholder is able to avail a maximum claim amount.

Depreciation Rate Applicable on Bike With And Without Zero Depreciation Add-on

What is Included under a Kotak Two-Wheeler Insurance Policy with Zero Depreciation Cover?

Below mentioned aspects shall be covered under a Kotal Two-Wheeler Insurance policy with Zero Depreciation Cover:

• Compensation for depreciable parts such as nylon, rubber, fibreglass and plastic parts of the two-wheeler is provided to the policyholder.
• Under some circumstances, a zero-depreciation cover also provides coverage for partial damages to battery and tyres.
• Cost of repairs or replacement born by the policyholder at the time of claim settlement shall be provided to the policyholder.

What is not Included under a Kotak Two-Wheeler Insurance Policy with Zero Depreciation Cover?

Below mentioned are some things that shall not be covered under a Kotak Two-Wheeler Insurance policy with Zero Depreciation Cover:

• Own-damages to the insured two-wheeler due to mechanical fault or failure.
• Total damage/loss to the two-wheeler is not covered under a zero depreciation add-on cover
• Damage/loss of the uninsured items such as gas kits, tires or bi-fuel kit is covered under a zero depreciation cover
• Routine ageing/wear and tear shall be not covered under a two-wheeler insurance policy along with zero depreciation add-on cover.

Policyholders enjoy multiple benefits with the Kotak zero depreciation cover; however, the following conditions should be kept in mind:

• It is available for bikes with a maximum age of 2 years
• Policyholders can make only two claims in the entire policy tenure
• Repair and replacement due to common wear and tear are exclusion
• In cases of complete damage, mechanical and electrical breakdown the insurer does not provide coverage.