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National Insurance Zero Depreciation Bike Insurance Policy
Depreciation is the gradual decrease in the monetary value of a bike over time. The depreciation cost of a bike has to be borne by its owner. at the time of claim settlement as the insurance company deducts the bike's depreciation costs from the claim amount. However, the policyholder can shift the burden of bearing depreciation cost to the insurance company via a zero depreciation cover.
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National Insurance Zero Depreciation Bike Insurance Add-on Cover
National Zero Depreciation Bike Insurance policy offers comprehensive two-wheeler insurance coverage with zero depreciation add-on cover. It covers the insured bike against third party liabilities and own damages without considering depreciation. The enhanced cover doesn't let the National Insurance Company Limited charge the depreciation amount from the policyholder as it provides coverage for the repair and replacement of the insured bike and its parts.
The National Zero Depreciation Bike Insurance allows the policyholders to claim maximum claim benefits with no deductions. However, the zero depreciation cover needs to be purchased under the bike insurance policy on payment of an additional premium amount.
People who have luxury two-wheelers with expensive parts and who live in accident-prone areas should go for the zero dep add-on cover under their National two wheeler insurance policy. People with new bikes should also opt for this add-on cover.
Benefits of National Zero Depreciation Add-on Cover
The benefits of getting two-wheelers insured under the National Zero Depreciation Bike Insurance policy are:
1. Higher Claim Value: In the case of a standard National bike insurance policy, the claim value depends on various factors like the depreciation value of the bike parts. Under zero depreciation add-on cover, the policyholder only needs to pay some extra premium to enjoy the maximum claim value of the bike insurancepolicy. There are no deductions due to the depreciation on the two-wheeler’s value with the zero depreciation add-on cover.
2. Lowers Out-of-Pocket Expenses: In a standard two wheeler insurance policy, the policyholderhas to pay more for the repair of the bike or its parts as not the claim amount reduces due to depreciation. But under a zero depreciation bike policy, the National Insurance Company pays for the repair and replacement of the bike, thereby, reducing the out-of-pocket expenses of the policyholder. It is more beneficial for high-end bike owners as the repair of luxury bike parts is expensive.
3. Monetary Benefits: The policyholder saves money on the repair costs of theinsured two-wheeler as the maximum claim amount is higher in the case of a zero depreciation bike insurance policy.
Depreciation Rates Applicable on Bikes With and Without Zero Depreciation Add-on Cover
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Age of the Bike |
Rate of Depreciation without Zero Depreciation Cover |
Rate of Depreciation with Zero Depreciation Cover |
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Under 6 months |
Nil |
0% |
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6 months to 1 year |
5% |
0% |
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1-2 years |
10% |
0% |
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2-3 years |
15% |
0% |
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3-4 years |
25% |
0% |
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4-5 years |
35% |
0% |
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5-10 years |
40% |
0% |
|
Above 10 years |
50% |
0% |
Depreciation Rates Applicable on Bike Parts with and without Zero Depreciation Add-on Cover
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Part of Bike |
Rate of Depreciation without Zero Depreciation Cover |
Rate of Depreciation with Zero Depreciation Cover |
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Rubber/ Plastic/ Nylon parts |
50% |
0% |
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Fiberglass parts |
30% |
0% |
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Glass parts |
Nil |
0% |
Factors Affecting the Zero Depreciation Cover of National Bike Insurance
Factors that affect the zero depreciation bike insurance policy by the National Insurance Company are:
1. The zero depreciation can be claimed only twice by the policyholderduring a policy year.
2. The maximum age of the bike to avail of the zero depreciation policy is 2 years.
3. The bike's normal wear and tear do not come under the scope of zero depreciation cover of National Insurance Company L
4. The zero depreciation add-on cover of the National Insurance Company does not cover total loss or damage beyond the repair of the bike.
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FAQ's
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Q: Who should take the National Insurance zero depreciation bike insurance policy?
Every two-wheeler owner should take this policy if the bike is not more than two years old. But the owners of new bikes and luxury bikes should definitely go for this policy. Even people living in accident-prone areas should opt for this policy.
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Q: How many times can a policyholder claim the National Insurance zero depreciation bike insurance policy?
The policyholders can claim zero depreciation only twice during the tenure of their bike insurance policies.
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Q: What types of damages are not covered by the National Insurance zero depreciation two wheeler insurance policy?
Damages due to wear and tear of the vehicle and damages beyond repair are not covered under the National Insurance zero depreciation policy.
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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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