Your Guide to Get a Zero Depreciation Cover on a Two Wheeler Insurance!
- Details Written by PolicyBazaar -
Updated 06 December 2019
Two wheeler insurance is basically an agreement policy between an insurer as well as the insured to help with funds when there is a mishap with the insured vehicle. Just like life, it is challenging to predict when something goes wrong with your two-wheeler and you need funds to get it going. For people, who have multiple modes of transport- it is okay to not shell out a lot of money for two wheeler insurance, but for people who rely solely on one mode of transportation, it is crucial to get two wheeler insurance. A two wheeler is quite an expensive commodity and the repair costs can turn out to be quite expensive, which is why having an amount saved only for when you need it is quite a good idea. Also, the cover amounts that are offered to you are also lucrative. This cover amount which can be used for risk coverage is definitely a sensible investment to make and comes in very handy when there is a need.
Two-Wheeler insurance comes with a lot of features. One is the primary policy which provides standard coverage and one is a comprehensive policy which is offered by various insurers and have comprehensive features added in it. A zero depreciation feature is one such addon that comes quite handy when there is a problem with the two-wheeler. Every feature offered in a comprehensive policy is useful, and you can speak to your insurer to find out which one is the best fit for you. All the leading insurance providers ensure that you have the best of agents to guide you and also provide you with the most suitable option depending upon the make, age and features of your two wheeler. In the following section, there are plenty of benefits of two-wheeler insurance:
Benefits of Getting Two Wheeler Insurance
There are various benefits of getting a two wheeler insurance. Firstly, you can be completely prepared for any mishap with the two wheeler. Additionally, the entire procedure becomes very streamlined when there is a mishap. When there is an accident, it is challenging for the victim’s family to take care of the affected person as well as the two wheeler. In such a case, the insurance agent can help you take through the entire process and provide you with the necessary claim. Additionally, you can also get a claim for third party cover, which helps you pay any liability for the other party involved in the accident. There are plenty of benefits of getting a two wheeler insurance, it just depends on which policy you choose and what all the insurer offers to you.
All You Need to Know About Zero Depreciation Insurance Cover
A depreciation primarily signifies a dip in the price of the two-wheeler. The longer you keep the vehicle for, the lesser its price becomes. Every year the two-wheeler or your vehicle is subjected to a specific type of fall in price. A zero depreciation cover for a two-wheeler is a relatively new concept in the insurance market. It is a harsh truth, but vehicles are not exactly a kind of investment since their value depreciates over the duration. A zero depreciation insurance cover primarily provides you with coverage against this falling value of the two-wheeler.
Now, the issue is that traditional insurance policies come in two types- one wherein the basic policy offers you standard protection, and one is comprehensive which has a lot of add-on features. Zero depreciation is a new concept that the insurers have introduced in the market. The essential function of this policy is to ensure that you get full claim and not the depreciated value as set in the insurer’s guidelines.
Take this instance, if Mr. Nair has a major accident and the promised amount of claim to him was Rs. 2 Lakhs, then he would plan his expenses factoring in this Rs. 2 Lakhs right since the beginning while making a claim. However, when he makes a claim, the return amount he receives is only Rs. 1,40,000 which equates to 30% lesser than the amount Mr. Nair was expecting. Mr. Nair gets shocked and now starts to worry about the additional 60,000 that he needs to arrange. This situation has risen only because Mr. Nair took a standard policy and did not take a zero depreciation cover additionally. If he had, he would be getting the entire claim amount. In fact, if he gets into an accident again during a policy which is comprehensively covered with the zero depreciation feature, he can make the claim again since you are given a provision of making a claim for the full amount with the zero depreciation feature factored in.
So, a zero depreciation cover is a part of your two wheeler insurance and is quite a comprehensive add-on to include in it. Read on to know more about the inclusions, exclusions as well as the important pointers of a two wheeler insurance policy with zero depreciation cover.
Ensure Zero Depreciation Cover on Two Wheeler Insurance
There are plenty of reasons to ensure a zero depreciation cover on your two wheeler insurance. Given below are the crucial pointers to remember regarding a zero depreciation cover on two wheeler insurance:
Exclusions of Zero Depreciation Cover
A zero depreciation cover does not come with coverage for damages that are not eligible and are caused due to any risk that is uninsured. Even uninsured items like gas kits, bi-fuel kits as well as tires are not a part of the zero depreciation coverage. Additionally, if any damage is caused to the two wheeler due to wars or acts of terrorism, then it is not protected by a zero depreciation policy. It does not cover any damage caused by a mechanical fault in the two wheeler either.
Inclusions In Zero Depreciation Cover
A zero depreciation cover includes coverage for damage which is caused to fiberglass, plastic, rubber as well as nylon parts. Even though the inclusions are quite limited, they are beneficial for somebody who has just bought a two wheeler insurance. Additionally, you can make use of this feature twice during the policy term which is quite beneficial. It helps you get the full value of your claim without any additional issue come in between.
Main Perks for Opting for Zero Depreciation Cover in a Nutshell
The vital point perk of getting a zero depreciation is the additional discount on the repair damages which will always be evaluated keeping the depreciation cost in mind. Once, you have this cover, you do not need to worry about getting lesser claim. Following is a simple comparison between a standard insurance policy as well as a policy with zero depreciation cover:
- Claim settlement: When it comes to standard policy, the settlement of the claim will depend upon how old the vehicle is and will consider the depreciation. However, when you have a zero depreciation cover, then you will get a coverage equating to full settlement.
- Premium: Even though the premium for a policy with zero depreciation cover is much higher than a standard policy, it gives much better returns in the long run.
- Repair costs as well as costs of plastic fiber: When it comes to the value of repairing as well as the significant cost of plastic fiber, in most cases, the insured has to shell out the money for it. However, when it comes to a zero depreciation policy, this is covered by the insurer making the costs much lesser for the policyholder.
- Age of the vehicle: Since the policy term (generally) covers two claims during the policy, the zero depreciation covers only cars that are new. A standard policy does not take the age of the vehicle into consideration so if your vehicle is very old; then you may have to opt for a regular policy only.
Conditions for Getting the Zero Depreciation Cover
There are certain conditions which you need to keep in mind to avail a zero depreciation cover:
- You cannot get coverage under zero depreciation if you lose the vehicle or it is damaged beyond repair.
- Most zero depreciation cover policies come with a condition of only providing coverage for two times in the entire policy term.
- You can get your two wheelers repaired only at an available network garage to make a claim.
However, terms and conditions differ depending upon the insurer, and it is always advised that you read the entire policy document carefully before opting for it to know what benefits you can avail in time of need. There are plenty of options available in the market. You can choose from the following options:
Best Options of Two Wheeler Insurance Policies with Zero Depreciation Option
- Bajaj Allianz Two Wheeler Insurance: The Bajaj Allianz Two Wheeler Insurance comes with a zero depreciation feature and includes coverage against the depreciating prices of fiber, plastic and nylon parts when you go to make a claim. You can make a claim of two times during the policy term as well as is valid only for a few eligible two wheelers. However, it does not exclude any claim value for any uninsured feature. It does not include any errors caused due to a mechanical error either, and if there is damage which has been created due to the over usage over time, even that is not covered under this policy.
- Reliance General Insurance Two Wheeler Insurance: The Reliance General Two Wheeler Insurance is another provider for two wheeler insurance and zero depreciation cover. This policy can be opted for when a new two wheeler insurance policy is bought, or it is renewed. This policy offers claims coverage against fiberglass, nylon, plastic, and rubber. The average depreciation rate is anywhere between 0%-40% for most two-wheelers, but with this policy, you can get the full claim without any depreciation taken into consideration. However, it is valid only for specific makes and models, so you need to ensure that your two-wheeler comes under this option. The experts at Reliance General Insurance suggest that anybody with luxury vehicles, drivers who are inexperienced or new or bike owners with costly spare parts should opt for this insurance policy.
- Bharti AXA GI: Bharti AXA GI is another trusted provider for two wheeler insurance policies. They also have an option for providing the zero depreciation cover. It comes with the usual terms and conditions of this policy. You can get claims for plastic, nylon as well as fabric parts but uninsured conditions are not covered under this type of policy. The thing is that a zero depreciation is one of the best add-on features in a Bharti AXA two wheeler insurance policy, especially for people who have expensive spare products which can cause quite a dent when there is an accident.
Other options that you can choose are HDFC ergo two wheeler insurance which is quite a trusted provider of insurance as well. You can analyze and carefully make a decision as to which one is the best choice for you.
There are plenty of other products which provide two wheeler insurance with an add-on feature of zero depreciation. Now that you are aware of the advantages, you definitely should look for this add-on when opting for a two wheeler insurance and also while renewing the policy. However, it is crucial to read all the terms and conditions because special add on features come with various precautions. You need to ensure that you make the most of your investment, which is why reading the policy document is crucial. While the premium might get slightly more expensive than a standard policy for you, it comes in very handy when you need to make a claim. Don’t let the depreciation feature take away from the premium you have paid and made you shell out a lot of money when you really need it! The no depreciation feature will ensure that you get full claim and there is no money compromised.
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