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Every two-wheeler goes through depreciation. Simply put, depreciation of a vehicle means a reduction in its value due to its wear and tear over a period of time. If you do not want a reduction in your bike insurance claim settlement amount, then you can opt for zero or nil depreciation cover as an add-on benefit in your comprehensive two-wheeler insurance policy. All that is required from your end is payment of an additional premium on the top of your basic bike insurance policy.
The insurer does not take into consideration the depreciation on bike or scooter parts while settling the claim. Thus, it ensures a better claim price for the incurred damage and helps you save money.
Citing an example, in case there is a bike accident, then the insurer will recompense the full damage amount without deducting the depreciation value of the bike parts.
Benefits of Zero Depreciation Cover in a Two-wheeler Insurance Policy
By opting for zero depreciation cover you can avail the following benefits-
- You get the actual claim amount post all the compulsory deductions
- It minimizes the out of pocket expenses at the time of claim
- An enhanced cover on your existing policy
- It helps you save more money
- You don’t need to worry about lower claim amounts
Zero depreciation is one of the best add-on features, especially for people who have expensive spare products which can cause quite a dent when there is an accident.
You should also check the inclusions and exclusions before option for a zero depreciation bike insurance policy.
Inclusions of a Two-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 battery and tyres without calculating the depreciation
- The zero depreciation cover can be availed at the time of purchase and renewal both
- The number of permissible claims in a zero depreciation policy can vary based on the insurance company.
- Read the policy documents carefully as this cover is available for designated two-wheeler models only.
Exclusions of a Two-Wheeler Insurance Policy with Zero Depreciation Cover
- Any kind of uninsured perils
- Damaged caused because of mechanical faults
- Routine ageing and wear and tear are not covered
- Total damage or loss of the vehicle
- In case of damage caused to uninsured bike items such as tires, bi-fuel kit, and gas kits
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 a standard bike insurance policy, the settlement of the claim will depend on the age of the vehicle and the depreciation value of the parts. However, when you have a zero depreciation cover, you get full compensation at the time of claim.
- Premium Cost: 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 Fibre: In most of the cases, the cost of repair and plastic fibre parts are paid by the insured. 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 cars up to a specific age only. 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.
|You may like to Read: Nil Depreciation Cover for Bike Insurance|
There are certain conditions which you need to keep in mind to avail a zero depreciation cover:
- You cannot avail zero depreciation cover if your vehicle is damaged beyond the scope or repair or is declared as a total loss
- Most zero depreciation cover policies permit two claims 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 advisable that you go through the policy documents carefully.
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.
A standard two wheeler insurance policy is more beneficial if you opt for zero depreciation cover. Even though the inclusions are quite limited, they are beneficial for somebody who has just bought 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.
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