Key Points

The insurance company takes this factor into account when you file a claim on your bike insurance policy, preventing you from getting the entire coverage amount. So, what can you do to prevent this? When buying a bike insurance plan, get zero-depreciation add-on coverage.

Keep reading for an in-depth understanding.

What is Zero Depreciation Add-on Cover in Bike Insurance?

A zero depreciation add-on is an additional coverage option with a comprehensive two-wheeler insurance policy. Depreciation is the decline in the value of an item caused by wear and tear, which is common for all vehicles and rises over time with extended use.

That is why insurance companies limit this amount when settling a claim. However, with a Zero Depreciation Add-on, the depreciation of your two-wheeler's parts won't be deducted because it won't be calculated while settling the insurance claim for the vehicle.

What is the Difference Between Comprehensive Policy and Zero Dep Cover?

Comprehensive Bike Insurance coverage will pay for damage to the insured bike (under the Own Damage component) and third-party liability (accidental death or incapacity of a person or property damage).

The Own Damage (OD) insurance component protects the insured against financial loss due to damage to your bike. This includes damages due to accidents, natural calamities, man-made accidents (i.e. fire, vandalism, theft, etc.), or any damage caused by third-party collisions. By being insured by OD insurance, you, as the bike owner, are covered for repair or replacement costs.

However, comprehensive coverage does not cover the cost of repairing or replacing depreciable bike parts such as rubber, plastic, metal, glass, nylon, and fibre. A zero depreciation cover as an add-on assures you do not pay any additional amounts when filing a claim. The cost of the depreciated parts is fully covered under the zero depreciation coverage.

Real-Life Example

Suppose a bike crashes in an accident, and the repair cost is ₹20,000.

Without zero depreciation coverage, the insurer will deduct ₹5,000 as depreciation cost for parts such as plastic, rubber, and metal. As a result, the claim amount would only be ₹15,000, requiring you to pay the remaining amount out of your pocket.

On the other hand, with zero depreciation cover, you'll get the entire ₹ 20,000 (excluding other standard deductibles, if any).

What are the Benefits of Zero Depreciation Bike Insurance coverage?

The following are the benefits of adding zero depreciation coverage to your comprehensive two-wheeler policy:

• You obtain the actual claim amount after all the obligatory deductions.
• It reduces out-of-pocket payments at the time of claim.
• An improved coverage on your existing insurance plan.
• Enables you to save more money.
• You do not have to worry about reduced claim amounts under the zero dep cover.

However, it's important to remember that you can get the benefits of a zero-depreciation cover as long as your bike is under 5 years old.

What are the Inclusions & Exclusions with Zero Depreciation Cover?

Understanding the inclusions and exclusions of zero depreciation two-wheeler insurance is essential to ensuring adequate coverage and avoiding surprises during the claim process.

Inclusions with the Zero Depreciation Cover

Here's the list of inclusions in a bike insurance policy with zero depreciation cover:

• Compensation for depreciable parts of your bike, including plastic, fibreglass, rubber, and nylon.
• Payment for replacement and repair expenses at the time of claim settlement.
• Some policies cover partial tyre and battery damage without calculating the depreciation.

You can get zero depreciation coverage both when you buy a new insurance policy and when you renew it. Also, depending on the insurance provider, the number of permissible claims differs under two-wheeler insurance with zero dep coverage.

Exclusions with the Zero Depreciation Cover

Now, let's look at the exclusions under the zero dep cover.

• Uninsured risks of any type.
• Damage due to mechanical issues.
• Complete loss or damage beyond repair of the two-wheeler.
• Uninsured bike parts like gas kits, tyres, and bi-fuel kits.

The terms and conditions for zero depreciation bike insurance coverage may vary depending on the insurer. Therefore, it is recommended that you thoroughly review the policy documents before you purchase the add-on cover for your bike insurance plan.

Furthermore, the zero depreciation cover can be used twice during the policy year, which is beneficial for people as it allows them to receive the entire value of their claim without any further issues.

- TINN