Zero Dep vs. Comprehensive Two Wheeler Insurance Cover- Which one is Better?
Buying two wheeler insurance is compulsory in India as per the Motor Vehicle Act, 1988. As per the act, every motor vehicle (car, bike, truck, etc.) that is plying on public roads must have third-party liability insurance coverage. Third party insurance is a basic insurance coverage that can be availed by any bike owner at an affordable premium. Third-party liability cover is also known as liability-only insurance. It provides insurance protection against the legal liabilities that the policyholder must fulfil in case of an accident. This means, in the event of an accident, the insurance company will provide financial assistance to the third-party in case if any bodily injury, death or any property damage is caused by the insured. This type of insurance does not provide any particular protection to the policyholder. In case, the insured’s vehicle is damaged due to the accident, and then he/she has to bear the incurred repair costs.Read more
Selecting a bike insurance policy that suits your insurance requirements and fits your budget is a tough task. The insurance market is flooded with various options. Almost all the general insurance companies offer two-wheeler insurance at different premium rates and with different advantages. Having a wide range of options to choose from can often lead to confusions. The two of the most popular two-wheeler insurance covers are Zero Depreciation Insurance Cover and Comprehensive two-wheeler Insurance cover. Each of these policies has its own set of advantages and disadvantages.
In this article, we will tell you everything that you need to know about zero depreciation two-wheeler insurance cover as well as comprehensive two-wheeler insurance cover.
First, let’s begin with zero depreciation two-wheeler insurance cover.
Zero Depreciation Two Wheeler Insurance Cover
Depreciation refers to the reduction of the value of a product over the years of usage. When you use your bike for a few years, its market value decreases. This reduction in value of the bike is called depreciation.
Under a basic bike insurance policy, the insurance company provides coverage for damage repairs or replacement of the various components. The incurred amount isn’t inclusive of depreciation. The coverage is provided after deducting the value of depreciation. The deducted depreciation value is paid by the policyholder.
A bike or a car is an asset whose value depreciates with time. Due to the increasing repair expenses prices in the market, it is a must to have vehicle insurance coverage.
A number of insurance companies offer various add-on covers for their bike insurance policies. These add-on covers provide extra protection which is not included in the basic bike insurance policies.
Most of the insurance companies have introduced the Zero Depreciation cover for insurance buyers. It provides insurance coverage against depreciation at the time of filing a claim.
Inclusions of Zero Depreciation Bike Insurance Add-On Covers
- The zero depreciation add-on Cover offered by various two-wheeler insurance companies protects the policyholder against the expenses incurred due to rubber, plastic, fibreglass, and only nylon parts
- The add-on cover can be availed at the time of buying vehicle insurance. Additionally, one can opt for a zero depreciation insurance cover at the time of renewal of the insurance policy.
Exclusions of the Zero-Depreciation Bike Insurance Add-Cover
Two-wheeler zero depreciation add-on cover comes with a number of exclusions. The factors that are not included in this particular add-on cover are mentioned below:
- Any kind of damages caused due to an uncovered risk.
- Any sort of damages the part of the vehicle that is not insured such as tyres, bi-fuel kit, gas kits and more.
- Normal wear and tear of the insured bike.
- Any damages caused because of mechanical problems.
- It does not provide protection in case the insured bike is damaged totally or is untraceable.
- It will not provide more than two times in the plan tenure.
- The coverage will be provided only at the network listed garage of the policyholder.
Note- Terms and conditions, features etc. of a particular plan may be different from other insurance policies. It is recommended that before you buy a zero-depreciation add-on cover; know its terms and conditions.
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Comprehensive Two Wheeler Insurance
Many insurance experts and insurance advisors suggest that a bike owner should opt for a comprehensive insurance cover instead of third-party insurance. Majorly, bike owners settle for a third party bike insurance cover merely because it is compulsory and it comes at an affordable premium. Comprehensive insurance offers added advantages and benefits that are often missed and ignored by many, merely to save a few pennies.
A comprehensive two-wheeler insurance cover provides protection in case of accident, theft, natural calamity and it fulfils third-party liability as well. Thus, a comprehensive two-wheeler insurance plan offers a complete coverage.
Characteristics of Two Wheeler Comprehensive Insurance Policy
A comprehensive insurance has a number of features that benefit the policyholder. A few benefits are mentioned below:
- A comprehensive insurance policy covers third-party liability. If you have a comprehensive insurance cover, then the insurance company will look after the financial or monetary liability you owe to the third-party in case of bodily injuries, death or property damage in the event of an accident due to the insured two-wheeler vehicle.
- The insurance company will provide insurance coverage if the insured two-wheeler vehicle is damaged because of any to natural calamities such as floods, earthquakes and more.
- The insurance company will also provide insurance coverage if insured bike suffers damages due to man-made disasters like fire, robbery etc.
- It also covers damages suffered by the insured bike in the process of transportation by railways, roadways, waterways and airways.
- Some insurance providers provide a personal accident insurance cover to
Importance of Two Wheeler Comprehensive Insurance Policy
It is imperative and wise to choose a comprehensive insurance cover for your two-wheeler because of the following factors:
- It offers comprehensive vehicle insurance Thus, it provides insurance coverage against various unfortunate situations that may lead to bulky costs in the future.
- The insurance company offers financial assistance when the insured vehicle is damaged and needs repair. It saves the policyholder from incurring heavy repair expenses.
- Though the premium rates are higher as compared to a third-party policy, it offers coverage for an array of problems.
Zero Depreciation Cover vs Comprehensive Cover
Both the covers have some key differences that need to be understood before you opt for in any of them. Below are certain points that will help you distinguish between a Zero Depreciation Cover and Comprehensive Cover two-wheeler insurance policy. It will help you make a wise and informed decision. Each policy has its own pros and cons and comes at different premium rates.
- Rate of Premium: Essentially, comprehensive insurance cover is offered at a lower premium rate by insurance companies when compared to that of a zero depreciation cover.
- Claims Settlement: In case of a comprehensive insurance policy, the insurance company considers the depreciation rate of the bike at the time of claim settlement. While in the case of zero depreciation, the claim is settled without any such considerations.
- Repairs: Under zero depreciation insurance, the insurer covers the total repair expenses inclusive of repair expenses incurred due to plastic parts. There is no such inclusion under a two-wheeler comprehensive insurance. The policyholder has to bear extra costs from his/her own pockets.
- Age of the Two-wheeler: While zero depreciation cover provides coverage for a period of up to 5 years, a comprehensive cover provides protection for two-wheelers up to 15 years.
Two-wheeler comprehensive insurance cover is suitable for anyone who wants a complete protection for his/her bike. Also, it can be availed by anyone who is not concerned with depreciation rate and protection is his/her ultimate priority.
On the other hand, a two-wheeler zero depreciation add-on cover is suitable for anyone who wishes to save money and depreciation rate matter to them.
The choice of picking any of the two is a personal preference. And it completely depends on one’s needs and circumstances around.
How to Buy Two Wheeler Insurance?
You can buy two wheeler insurance in an easy and simple manner. There are a number of ways to do it. You can either choose the offline option or the online option. If you wish to buy it offline, then you can visit the nearest office of the insurance company of your choice and carry on with the procedure of two-wheeler insurance by the help of the insurance company representative. Or you can contact an insurance agent or bank that provides insurance facilities.
However, in today’s technological world, many buy two-wheeler insurance online. In order to buy two-wheeler insurance online, all you need to do is visit the official website of the insurance company of your choice. You can find all the necessary information and guidelines to successfully buy two-wheeler insurance online on the official website of the company.
Additionally, you can avail the services offered by various insurance aggregators. In case you face any difficulties while buying two-wheeler insurance online, then you can avail assistance through the live customer support and help. Buying two-wheeler insurance online is easy, simple, convenient and fast as compared to the old traditional method. In order to buy two-wheeler insurance online, all you need is a smartphone, computer/ laptop and a good internet connection and you are good to go. It is safe, fast and easily accessible.
Summing it up
If you wish to avail a zero-deprecation add-on cover for your two-wheeler, there are certain conditions that you need to follow. You are advised to carefully go through the terms and conditions of the plan.
Once you have thoroughly understood the policy terms and conditions, you will have a clear idea about its coverage.