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:
Coverages Zero-Depreciation Bike Insurance Policy
Covered in Zero-Depreciation Bike Insurance
Not Covered in Zero-Depreciation Bike Insurance
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:
| Bike Part | Depreciation Without Zero-Dep | Depreciation With Zero-Dep |
|---|---|---|
| Plastic/Fibreglass parts | 30%–50% | 0% |
| Rubber/Nylon/ Tyres | 50% | 0% (if included; else excluded) |
| Metal parts (e.g., body panels) | Based on bike age (up to 50%) | 0% |
| Battery | 50% | 0% (if covered; varies by policy) |
| Paintwork | 15% (on the total paint cost) | 0% |
| Glass parts | 0% | 0% |
| Consumables (engine oil, etc.) | Not covered | Not covered (requires a separate add-on) |
Note: 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).
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:
| Age of the Bike | Depreciation Without Zero-Dep | Depreciation With Zero-Dep |
|---|---|---|
| Less than 6 months | 5% | 0% |
| 6 months – 1 year | 15% | 0% |
| 1 – 2 years | 20% | 0% |
| 2 – 3 years | 30% | 0% |
| 3 – 4 years | 40% | 0% |
| 4 – 5 years | 50% | 0% |
| More than 5 years | IDV is mutually decided (high depreciation) | Not eligible (zero-dep usually not offered) |
Note: Without zero-dep Cover: Depreciation reduces your Insured Declared Value (IDV) and your claim amount. 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:
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:
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Go to Policybazaar.com and click 'Bike Insurance'..
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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.
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Compare bike insurance online from different insurance providers and choose a plan that matches your needs perfectly.
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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.
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Provide the requested details and pay the bike insurance premium online using the preferred payment method.
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On successful payment, a copy of your policy will be sent to your registered email ID.
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:
Zero-Depreciation Bike Insuranc-FAQs
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Q.1 What is zero-depreciation for bike insurance?
Ans:Zero Depreciation bike insurance is an add-on cover that ensures you receive the full claim amount without any deduction for depreciation on bike parts. Normally, insurers reduce the claim amount by considering the depreciation of replaced parts, but with zero-dep insurance for bike, the insurer bears the full repair or replacement cost, except for deductibles and exclusions. -
Q.2 Is it good to have zero-depreciation?
Ans: Yes, having zero-depreciation cover is beneficial as it ensures you get the maximum claim amount without depreciation deductions. This means lower out-of-pocket expenses during repairs, making it an excellent choice for new or expensive bikes. -
Q.3 How many times can I claim zero-dep insurance?
Ans: The number of times you can claim zero-depreciation depends on your insurer and policy terms. However, most insurers have a limit of two claims per policy year. -
Q.4 Is zero-dep available after 5 years?
Ans: Generally, bike insurance companies stop offering zero-depreciation cover for bikes older than five years. You must always check with your insurer for eligibility. -
Q.5 Which is better, comprehensive or zero-dep?
Ans: Comprehensive bike insurance covers damages to your bike, third-party liabilities, theft, and other risks, but it considers depreciation while settling claims. In contrast, zero-depreciation is an add-on that eliminates depreciation deductions. So, if you want maximum claim benefits with minimal out-of-pocket expenses, adding zero-dep cover to your basic two-wheeler insurance policy is a better choice. -
Q.6 Is zero-depreciation worth it?
Ans: Yes, zero-depreciation is worth it, especially if you own a new bike. It ensures you receive the full cost of repairs or replacements, making it a valuable add-on for reducing financial burden in case of accidents. -
Q.6 Is zero-depreciation bumper to bumper?
Ans: Yes, zero-depreciation is also known as bumper-to-bumper cover or nil depreciation cover.
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