Zero-Depreciation Bike Insurance

What is Zero-Depreciation Bike Insurance?

Zero-depreciation bike insurance means the insurance company does not consider the depreciation on bike or scooter parts while settling the accidental claim. On the payment of an additional premium, this add-on cover offers extended coverage to your two-wheeler without determining its depreciating value.

For example, if your bike gets damaged in a road accident, your insurance company will cover all the damages or losses incurred during claim settlement.

Thus, zero-dep bike insurance ensures a better claim price for the incurred damage and helps you save money.

Benefits of Zero-Depreciation Bike Insurance Policy

By opting for zero-dep bike insurance cover, you can avail of the following benefits:

• Maximise the claim amount after all the compulsory deductions
• Minimises the out-of-pocket expenses at the time of raising bike insurance claims
• Enhances your existing two wheeler insurance policy
• Helps you save more money
• Reduces the chances of lower claim amounts
• Covers the expensive spare parts of the bike

Inclusions of Zero-Depreciation Bike Insurance Policy

The following are the inclusions of a 2-wheeler insurance policy with zero-depreciation cover:

• Compensation for depreciable parts such as nylon, rubber, fibreglass and plastic parts.
• Compensation for the cost of replacement and repair at the time of claim settlement
• Some plans also cover partial damages to the battery and tyres without calculating the depreciation

Exclusions of Zero-Depreciation Bike Insurance Policy

Listed below are the exclusions of the bike insurance policy with zero-depreciation cover:

• Any kind of uninsured perils
• Damages caused by mechanical faults
• Routine ageing and wear and tear of the bike
• Damages caused due to illegal riding (driving without a valid licence or under the influence of drugs or alcohol)
• Damages caused to uninsured bike items such as tires, bi-fuel kit, and gas kits.

Depreciation Rates on Bike Parts: With vs Without Zero-Depreciation Cover

The table below highlights the depreciation rates applicable to bike parts with and without the zero-dep add-on cover:

Things to Keep in Mind

• With zero-dep, these deductions are waived, meaning you only get the full cost of part replacement in case of accidents.
• Glass parts are typically not depreciated even under standard policies.

Depreciation Based on Bike Age: With vs Without Zero-Depreciation

The table below highlights the comparison of depreciation rates by bike age, showing the impact with and without a zero-depreciation bike insurance policy:

Things to Keep in Mind

• Without zero-dep Cover: Depreciation reduces your Insured Declared Value (IDV) and your claim amount.
• With zero-dep Cover: You get the full claim amount for repairs/replacements of parts without any depreciation deduction, but the cover is only valid up to a specific vehicle age (usually 5 years).

Standard Bike Insurance Vs Zero-Depreciation Bike Insurance

Here is a simple comparison between standard bike insurance and zero-dep bike insurance:

Things to Consider Before Buying a Zero-Depreciation Bike Insurance Cover

Check out certain things that you must keep in mind before buying a zero-depreciation bike insurance cover:

• You cannot avail of zero-depreciation cover if your two-wheeler is stolen or damaged beyond the scope of repair or declared a total loss.
• Most zero-dep bike insurance permits two claims in the entire policy term, which may vary depending on the insurance company.
• You can get your two-wheelers repaired only at an available network garage to make a claim.
• The zero-depreciation cover can be availed at the time of purchase and renewal.
• Add zero-depreciation cover when buying insurance for a new bike to get better protection.
• Luxury bikes have costly parts, so zero-dep cover helps save on repair and replacement expenses.
• Go through the policy documents carefully, as nil depreciation without excess is available only for the designated two-wheeler models.

How to Buy Zero-Depreciation Add-on Cover?

The steps to purchase a zero-depreciation add-on cover in a bike insurance policy through Policybazaar.com are as follows:

• Step 1: Go to Policybazaar.com and click 'Bike Insurance'.
• Step 2: For a new bike insurance policy, click on the 'Bought a New Bike' option or enter your two-wheeler's registration number for bike insurance renewal.
• Step 3: Compare bike insurance online from different insurance providers and choose a plan that matches your needs perfectly.
• Step 4: Select the type of coverage, i.e. comprehensive bike insurance policy and add 'Zero-depreciation cover' as an add-on. Depending on your requirements, you can also add other bike insurance add-on covers.
• Step 5: Provide the requested details and pay the bike insurance premium online using the preferred payment method.
• Step 6: On successful payment, a copy of your policy will be sent to your registered email ID.

Zero-Depreciation Bike Insurance