Liberty Zero Depreciation Bike Insurance

Understanding Depreciation in Bike Insurance Policy

To understand this concept of depreciation further, you can consider an example. Say that you purchase a bike worth ₹ 1,00,000. After using it for five years, there is a depreciation of 40%. After that time, let us say the bike gets damaged in an accident, and you must claim insurance. Based on the damages, you will get the claim. However, in a conventional setting, the full claim amount is not payable since 40% is deductible towards depreciation on the bike parts.

This can leave you with unwanted expenses. It is always better to take this additional cover to avoid such scenarios. This ensures that the claim amount is paid without deduction.

Benefits of Liberty Zero-Depreciation Add-On Cover

Liberty's zero-depreciation bike insurance policy has significant benefits for your two-wheeler insurance. They are given below:

• Full Claim Settlement: The claim settlement amount for Liberty zero depreciation bike insurance comes without deductions. This happens because the claim amount is fully payable without deducting the bike parts' depreciated value.
• Save Out-of-the-pocket Expenses: Zero dep cover in bike insurance policy compensates for the cost of any repairs. Furthermore, if any part needs replacement, this cover takes care of that too.

Depreciation Rate Applicable on Bikes With and Without the Zero Depreciation Cover

The table below shows the difference between the depreciation rates applicable with and without the Liberty zero depreciation bike insurance cover:

Benefits of Liberty Zero Depreciation Bike Insurance Cover

• Full Coverage for Depreciation: It ensures that you receive the full claim amount without any deductions for depreciation, meaning you get the complete value for repairs and replacements of the damaged bike parts in a road accident.
• Valid for Both Policies: Whether purchasing a new policy for a brand-new bike or renewing an existing one, this cover is valid for both, providing flexibility and ongoing protection.
• Protection Against Sudden Damage: The policy covers the cost of repairs or replacement for damaged parts in accidents, ensuring you don't have to bear the financial burden of depreciation.
• Multiple Claims: You can make up to two claims under the Zero Depreciation cover during the policy tenure, allowing for various instances of coverage within the policy period.
• Suitable for Relatively New Bikes: The cover is ideal for bikes purchased within the last couple of years, offering protection to new bike owners against depreciation during the early years of ownership.
• Applicable for Various Repairs: The policy covers repairing and replacing many bike parts, which may otherwise be subject to depreciation deductions, ensuring better financial protection post-accident.
• Peace of Mind: Excluding depreciation, you won't have to worry about paying out-of-pocket for the reduced value of parts or repairs, making it a comprehensive and hassle-free insurance option.

However, it's important to note that the cover does not apply to certain damages like wear and tear, mechanical failures, or specific parts such as fuel kits, tyres, and gas kits.