Benefits of Zero Depreciation Cover for Bikes

If you need to increase the coverage of your bike insurance policy, you can go for zero depreciation coverage. This add-on makes it possible for you to be fully compensated because your bike’s value is fully covered without getting any depreciation deduction.

But are any other benefits that make the zero depreciation cover a worthy addition to your bike insurance policy? Keep scrolling to find out!

What is Zero Depreciation Cover in Bike Insurance?

Zero depreciation in two-wheeler insurance means the insurer does not account for the bike's depreciation when calculating the claim amount. This ensures that the Insured Declared Value (IDV) is always high, similar to that of a new vehicle, even as the bike ages.

In case of damages caused by fire, theft, storms, or accidents, you will receive the full repair amount without any depreciation deduction.

This type of cover helps reduce out-of-pocket expenses and offers better compensation for your bike’s damages. Simply put, zero depreciation insurance ensures that you get a claim amount equivalent to the original value of your bike, regardless of its age.

What are the Different Benefits of Zero Depreciation Cover for Bikes?

Opting for a zero depreciation bike insurance add-on can significantly enhance your coverage. It offers several key benefits, which are as follows:

• Lower Out-of-Pocket Expenses: Zero depreciation reduces out-of-pocket expenses by ensuring the insurer pays the full coverage amount for repairing the damaged parts without deducting any depreciation.

• Full Claim Amount: You get the whole claim amount (but reduced by compulsory subtractions), and there are no deductions for the depreciation of bike parts.

• Enhanced Protection for Expensive Parts: This cover further safeguards expensive bike parts such as gears, mirrors, and batteries.

• Improved Financial Coverage: Zero depreciation cover acts as an additional layer of protection to your existing bike insurance, strengthening your overall coverage.

• Full Compensation for Depreciable Parts: This cover provides a further safeguard for expensive bike parts such as gears, mirrors, and batteries that are outshined.

• Coverage for Tyres and Batteries: A few insurers also protect the partial losses to tyres and batteries without considering the depreciation cost.

What is Covered and Not Covered Under Zero Depreciation Add-on Cover for Bikes?

The zero depreciation add-on cover includes the following:

• Compensation for Depreciable Parts: It also audits components made of rubber, fibreglass, nylon, and plastic, which are mainly depreciative parts throughout the claim process.

• All Claims Under Active Insurance: The cover applies to any claims made while your bike insurance policy is active.

• Top Ups to Active Policies: In case you do not have a zero depreciation cover in your bike insurance policy, you can buy one as a top-up. This is applicable for both comprehensive bike insurance plans and standalone own-damage policies.

The following are the points which are not covered under zero depreciation add-ons:

• Expired Policy: If you have an expired insurance policy, you cannot file a claim under this add-on.

• Uninspectable Damage: In case the damage cannot be inspected before repairs, a zero depreciation cover claim will not be processed.

• Other Insurance Policies: Damage covered under a different insurance policy is not included.

• Not Covered in Own Damage (OD) Section: If the damage is not covered under the OD section of the policy, the zero depreciation add-on will not apply.

• Delayed Claims: Claims reported more than 30 days after the damage occurred will not be accepted.

• Battery and Tyre Exclusion: Battery and tyre damages are generally excluded from coverage under this add-on.

• Mechanical Failures: Damage resulting from mechanical faults is not covered.

Who Should Consider Zero Depreciation Bike Insurance Cover?

The zero depreciation bike insurance is ideal for the following individuals:

• If your bike is under 5 years old.

• If you are particular about keeping your bike in perfect condition, free from dents and scratches.

• If you frequently ride in areas with high accident risk.

• If you are a new rider and still learning.

• If you own a new or luxury bike with expensive parts.

• If you want to minimise your out-of-pocket expenses in the event of an accident.

Opting for a zero depreciation cover for your bike insurance offers enhanced protection, ensuring you receive full compensation for damages without worrying about depreciation. However, remember the exclusions, such as mechanical damage or expired policies, and ensure you understand the terms provided by your insurer.

(No Hans India Journalist was involved in creation of this content)