Kotak Mahindra Zero Depreciation Bike Insurance Policy

TKotak Mahindra Zero Depreciation Bike Insurance Policy offers the policyholders an opportunity to save themselves from not paying for the depreciation of their bike. Insurance companies charge depreciation costs for a two-wheeler's gradual wearing out. The policyholders are required to pay a higher amount of depreciation charges if the bike ages for a longer time. Therefore, the zero-depreciation add-on helps policyholders reduce the overall cost of maintenance if the bike is prone to accidents. However, the add-on is applicable for the first two claims only during the policy period.

The policyholders must pay a 15% to 20% extra premium for availing of the depreciation cover add-on. However, the increased cost will compensate for the overall cost of maintenance as the insured will continue using the bike for long-term perspectives.

Benefits of Kotak Mahindra Zero Depreciation Bike Insurance Policy

Kotak Mahindra Zero Depreciation Bike Insurance Policy offers coverage for the following:

New or Luxurious Bikes
The bike has expensive spare parts
The rider lives in an accident-prone area

The Kotak Mahindra Zero Depreciation Bike Insurance Policy does not charge any depreciation cost for the bike's metal, fibre and rubber parts. The depreciation is not charged for an oil leak, mechanical breakdown, water ingression, oil change, or others, per Section I of the policy.

Additionally, It also offers the option of voluntary deductibles for certain exceptions. In such cases, if the policyholder opts for voluntary deductions, they will be liable for discounts as applicable. For further clarification, please find the table below:

Voluntary Deductible	Discount
INR 1,000	Up to 10% of OD premium subject to a maximum INR 500
INR 2,000	Up to 15% of OD premium is subject to a maximum of INR 750
INR 3,000	Up to 20% of OD premium subject to a maximum of INR 1,000

Depreciation Rate Applicable on Two-Wheeler With and Without Zero Depreciation Add-on

With zero depreciation cover, Kotak Mahindra General Insurance Company Ltd. offers higher benefits than the a comprehensive bike insurance policy without zero depreciation cover as below:

Bike’s Age	With Zero-Dep Add-on	Without Zero-Dep Add-On
Less than 6 months	0%	0%
More than six months but less than one year	0%	5%
More than one year but less than two years	0%	10%
More than two years but less than three years	0%	15%
More than three years but less than four years	0%	25%
More than four years but less than five years	0%	35%
More than five years but less than ten years	0%	40%
More than ten years	0%	50%

Exclusions Under the Kotak Mahindra Zero Depreciation Bike Insurance Policy

Kotak Mahindra Zero Depreciation Bike Insurance Policy will not provide coverage in the following cases:

It will not cover in case of parts, sub-parts, or accessories that are not approved in the company policy documents of the insurance.
In case of complete loss of insured vehicles
In case the loss is covered under the warranty of the manufacturer or any other such packages.
If the damage or loss of the vehicle is notified after 30 days of the incidence

Kotak Mahindra Zero Depreciation Bike Insurance Policy is effective for bike owners who invest considerable money and effort in maintaining their bikes. The insurance can seem expensive from a short-term perspective; however, it saves a lot of maintenance and repair costs in the long-term. The add-on cover is a benefit offered along with the base policy purchased, or you can also purchase it exclusively.

FAQs

Q. Can the Kotak Mahindra Zero Depreciation Bike Insurance Policy be purchased with an existing bike insurance plan?

Yes, the Kotak Mahindra Zero Depreciation Bike Insurance Policy can be purchased with your existing comprehensive bike insurance policy. However, you must remember that if your vehicle is old, you may not be eligible for the cover.
Q. Is it required to renew the Kotak Mahindra Zero Depreciation Bike Insurance Policy every time I renew my comprehensive bike insurance plan?

The insurer is required to renew the add-on cover every time renewing the Kotak Comprehensive Bike Insurance Policy. However, you must satisfy the zero-depreciation eligibility criteria at the time of renewal.
Q. What are the key costs included in the Kotak Mahindra Zero Depreciation Bike Insurance Policy?

The policy provides coverage for three key costs of maintenance of bikes. These are depreciation charges, repairing costs, and replacement costs.